A Legally Enforceable Debt III

Advocate represented its Client before a Motor Accident Claims Tribunal and charged a fee of Rs. 10,00,000 [Rupees Ten Lakhs]. Tribunal awarded compensation. Client was compelled to sign a further cheque, in favour of Advocate, towards payment of a certain percentage of decretal amount. That cheque stood dishonoured and Advocate in due time initiated proceedings […]

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Video Conferencing in Matrimonial (Cheque) Disputes II (I)

Recently in M/s. Meters and Instruments Private Ltd. v. Kanchan Mehta, [Criminal Appeal No. 1731 of 2017] Goel and Lalit JJ observed: “There appears to be need to consider categories of cases which can be partly or entirely concluded ‘online’ without physical presence of the parties by simplifying procedures where seriously disputed questions are not required […]

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A Legally Enforceable Debt II

To commit an offence, within the meaning of Section 138 of The Negotiable Instruments Act, 1881 there must be a legally enforceable debt or other liability subsisting on the date of drawal of the cheque. This is important to point out for sometimes cheques are post-dated. Notably, in Indus Airways Pvt. Ltd. v. Magnum Aviation […]

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Negotiable Instruments (Amendment) Second Ordinance, 2015

It is widely known that Dashrath Rupsingh Rathod v. State of Maharashtra, (2014) 9 SCC 129 gave rise to further ‘territorial jurisdiction conundrum’. In Bridgestone India, 2015 (13) SCALE 155 decided on 24.11.2015, “in order to overcome the legal position declared by the Court in Dashrath,” attention was drawn to The Negotiable Instruments (Amendment) Second […]

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Section 138 Notice

You do not need the help of an Advocate to draft a Section 138(b), NI Act Notice. A hand written note mentioning – i) the amount under subject, ii) cheque nos., iii) dates of issue, iv) bank particulars, v) details of dishonor – with a demand for repayment, is valid for the purposes of calculating […]

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Notice to Directors I

“The notice under Section 138 is required to be given to the ‘drawer’ of the cheque so as to give the drawer an opportunity to make the payment and escape the penal consequences. There is nothing in Section 138 which may even remotely suggest issuance of notice to anyone other than the drawer. The opportunity […]

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A Legally Enforceable Debt I

A person is deemed to have committed an offence, within the meaning of Section 138 of The Negotiable Instruments Act, 1881 when any cheque drawn by him, on an account maintained by him with a banker, for payment of any amount of money to another person, in whole or partial discharge of a legally enforceable […]

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