To commit an offence, within the meaning of Section 138 of The Negotiable Instruments Act, 1881 (“Act”) 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 […]Read more "A Legally Enforceable Debt II"
It is widely known that Dashrath Rupsingh Rathod v. State of Maharashtra, (2014) 9 SCC 129 gave rise to a 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) […]Read more "Negotiable Instruments (Amendment) Second Ordinance, 2015"
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 a valid Notice for the purposes […]Read more "Section 138, NI Act Notice"
My Lord, Is a notice under Section 138 of the Negotiable Instruments Act, 1881 (“Act”) mandatorily required to be sent to the Directors of a Company before a complaint could be filed against such Directors along with the Company? “The notice under Section 138 is required to be given to “the drawer” of the cheque […]Read more "Notice to Directors"
A person is deemed to have committed an offence, within the meaning of Section 138 of the Negotiable Instruments Act, 1881 (“Act”) 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 […]Read more "A Legally Enforceable Debt I"
The Bench in Dashrath, cleverly interpreted the “Harman Approach” and its effect on the “Bhaskaran Ratio”. It was fairly concluded by the SC that the “offence in contemplation of Section 138 of the NI Act was the dishonor of the cheque alone”; and that so far as the commission of the offence itself is concerned the […]Read more "The Foresight of Hon’ble Justice Lodha"
The chain of five events: i) the drawal of the cheque, ii) the presentation of the cheque, iii) the returning of the cheque as unpaid, iv) the giving of notice and v) the failure to make the payment within 15 days of receiving the notice – complete the commission of the offence, described under Section 138 […]Read more "Dashrath Rupsingh Rathod, (2014) 9 SCC 129"