Negotiable instrument 1881 Amendments
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Transcript of Negotiable instrument 1881 Amendments
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GSLGSL(India) Ltd.(India) Ltd.
GSL means a better yarnGSL means a better yarn
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and theand the legal teamlegal team
of GSLof GSL
WelcomesWelcomes
to allto all
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PRESENTATIONPRESENTATION
ON:ON:
SECTIONSECTION 138138 of the Negotiableof the NegotiableInstruments Act 11Instruments Act 11andand thethe
Amen!ments Amen!ments of the Actof the Act
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An O"er"ie# by: An O"er"ie# by:
$i%yant Nigam$i%yant NigamLa# Officer La# Officer
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&n!er the than'ful&n!er the than'ful
coo(eration an! gui!ance of:coo(eration an! gui!ance of:
Syt. Ashish BabuSyt. Ashish Babu
Sri. B. BhushanSri. B. Bhushan
Sri. Prem JhaSri. Prem Jha
Sri. Mahesh Pareek Sri. Mahesh Pareek
&&Sri. Manoj SinsinwarSri. Manoj Sinsinwar
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))ActAct No* +, of -earNo* +, of -ear
18811881. !ate! /01+0. !ate! /01+018811881
NegotiableNegotiableInstrumentsInstruments
Act 1881 Act 1881Came into force on 1Came into force on 1st st March, 1882 March, 1882
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the saidthe said act wasact was
enacted toenacted todefnedefne and toand to
provide the law provide the lawrelating torelating to promissory notes, promissory notes,
bills o exchangebills o exchange
and chequesand cheques ! !
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Promissory Note:Promissory Note:
Section Section of the Act !efines:of the Act !efines: A Promissory Note is an A Promissory Note is an
instrument in #riting containinginstrument in #riting containingan uncon!itional un!erta'ingan uncon!itional un!erta'ingsigne! by the ma'er to (ay asigne! by the ma'er to (ay acertain sum of money only to. orcertain sum of money only to. or
to the or!er of a certain (erson.to the or!er of a certain (erson.or to the bearer of theor to the bearer of theinstrument*instrument*
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2ill of E3change:2ill of E3change:
Section !Section ! of the Act !efines:of the Act !efines: A bill of e3change is an instrument in A bill of e3change is an instrument in
#riting containing an uncon!itional#riting containing an uncon!itional
or!er. signe! by the ma'er. !irectingor!er. signe! by the ma'er. !irecting
a certain (erson to (ay a certain suma certain (erson to (ay a certain sum
of money only to. or to the or!er of. aof money only to. or to the or!er of. a
certain (erson or to the bearer or tocertain (erson or to the bearer or tothe bearer of the instrumentthe bearer of the instrument
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4he5ue:4he5ue:
Section "Section " of the Act !efines:of the Act !efines: A che5ue is a bill of e3change A che5ue is a bill of e3change
!ra#n on a s(ecifie! ban'er an!!ra#n on a s(ecifie! ban'er an!not e3(resse! to be (ayablenot e3(resse! to be (ayableother#ise than on !eman!*other#ise than on !eman!*
Or #e can say a che5ue is a billOr #e can say a che5ue is a bill
of e3change #hich is (ayable onof e3change #hich is (ayable on!eman! an! #hich is !ra#n on!eman! an! #hich is !ra#n ona s(ecifie! ban'er*a s(ecifie! ban'er*
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#$t the che%$es ha&e ass$med#$t the che%$es ha&e ass$med
'eat imotance these da*s d$e'eat imotance these da*s d$e
to aid ind$stialisation follo+edto aid ind$stialisation follo+ed,* the economic li,ealisation o,* the economic li,ealisation o
,eca$se of the inceasin',eca$se of the inceasin'
aticiation in the intenationalaticiation in the intenational
commecial acti&ities. Inceasin'commecial acti&ities. Inceasin'
$se of the che%$e called fo$se of the che%$e called fo
sten'thenin' the elia,ilit* ofsten'thenin' the elia,ilit* of
a*ment +hen made tho$'ha*ment +hen made tho$'hche%$e so that che%$es co$ld ,eche%$e so that che%$es co$ld ,e
$sed +ith moe cedi,ilit* and$sed +ith moe cedi,ilit* and
,ette eliance.,ette eliance.
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T#o things #ere of great concernT#o things #ere of great concern
viz.viz.. such (ro"isions #ere. such (ro"isions #ere
re5uire! to be ma!e that (ro"e tore5uire! to be ma!e that (ro"e tobe of !eterrent effect to the othersbe of !eterrent effect to the others
an! in case of !ishonouring ofan! in case of !ishonouring of
che5ue. the amount is (ai! to theche5ue. the amount is (ai! to the
(ayee as early as (ossible(ayee as early as (ossible
together #ith interest an!together #ith interest an!
com(ensation*com(ensation*
In other words, the emphasis was onIn other words, the emphasis was on
the speed ustice, e"emplar andthe speed ustice, e"emplar and
compensator usticecompensator ustice
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-om-om 11stst Ail 18Ail 18
((188 Amendment188 Amendment)) If a (erson issues a che5ue an! itIf a (erson issues a che5ue an! it
got !ishonoure! the (erson is sai! togot !ishonoure! the (erson is sai! to
ha"e !oneha"e !one an offencean offence**
6hate"er be the reason for the6hate"er be the reason for the!ishonour #eather for insufficiency of!ishonour #eather for insufficiency of
fun!s or #hate"er. the same !oesfun!s or #hate"er. the same !oes
not matter*not matter*
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188 Amendment188 Amendment
to#ar!s achie"ing the goalto#ar!s achie"ing the goal on theon thespeed ustice, e"emplar andspeed ustice, e"emplar and
compensator usticecompensator ustice ne#ne#(ro"isions #ith enlightene!(ro"isions #ith enlightene!
%uris(ru!ential foun!ation #ere %uris(ru!ential foun!ation #ereengrafte! an! (ut on the statuteengrafte! an! (ut on the statuteboo' in the year 1/ in the form ofboo' in the year 1/ in the form of
instit$tion of instit$tion of
Chapter XVIIChapter XVIIto the Negotiable Instruments Act.to the Negotiable Instruments Act.
1111
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XVII XVIIThe sai! cha(ter #as incor(orate! for (enaltiesThe sai! cha(ter #as incor(orate! for (enaltiesin case of !ishonour of che5ues !ue toin case of !ishonour of che5ues !ue toinsufficiency of fun!s in the account of theinsufficiency of fun!s in the account of the
!ra#er of the che5ue or #hatsoe"er 7li'e sto(!ra#er of the che5ue or #hatsoe"er 7li'e sto((ayment etc*8*(ayment etc*8*
O,/ectO,/ect
These (ro"isions #ere incor(orate! #ith a "ie#These (ro"isions #ere incor(orate! #ith a "ie#to encourage the culture of use of che5uesto encourage the culture of use of che5ues
an! enhancing the cre!ibility of the instrument*an! enhancing the cre!ibility of the instrument*
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The larger objective The larger objective
is to protect theis to protect the
interest of honestinterest of honestpeople dealing inpeople dealing in
cheques.cheques.
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1988 Amendment1988 Amendment
0AWE0AWE#EWAE#EWAE#eca$se2 ,* the said#eca$se2 ,* the said
amendment theamendment the0ISONO4E0 CE54E is0ISONO4E0 CE54E is
,ein' TEATE0 as an,ein' TEATE0 as anCI6INAL O--ENCECI6INAL O--ENCE
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Certain new sections included inCertain new sections included in
the Negotiable Instruments Act the Negotiable Instruments Act
through thethrough the Chate 7IIChate 7II and are numbered as:and are numbered as:
SectionSection138138,,139,139,
140 and 141140 and 141
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New setions inNew setions in
the Chapter XVIIthe Chapter XVII
Section 138Section 138::this section !efines thethis section !efines the!ishonour of che5ue is an!ishonour of che5ue is anoffence* The same alsooffence* The same also
!efines the main ingre!ients!efines the main ingre!ients#hich ha"e to be fulfille! to#hich ha"e to be fulfille! to
ma!e it. an offence*ma!e it. an offence*
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Basic Presumption ofBasic Presumption of
Section 138:Section 138:
0ishono$0ishono$
of Che%$eof Che%$e
is anis anOffenceOffence
-i&e ,asic-i&e ,asic
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-i&e ,asic-i&e ,asic
sectionsection 1313 +hich shall ha&e+hich shall ha&eto ,e f$lfilled fo ceatin' an offence fo dishono$to ,e f$lfilled fo ceatin' an offence fo dishono$
of a che%$eof a che%$e che%$e sho$ld ha&e ,een da+n ,* the da+e in a*ment of ache%$e sho$ld ha&e ,een da+n ,* the da+e in a*ment of ale'al lia,ilit* to discha'e the e9istin' de,t.le'al lia,ilit* to discha'e the e9istin' de,t. Che%$e 'i&en ,*Che%$e 'i&en ,*+a* of 'ift +o$ld not come $nde this o&ision.+a* of 'ift +o$ld not come $nde this o&ision.
The che%$e sho$ld ,e esented +ithin the &alidit* eiod i.e.The che%$e sho$ld ,e esented +ithin the &alidit* eiod i.e.+ithin si9 months o thee months as the case ma* ,e.+ithin si9 months o thee months as the case ma* ,e.Common sense demands that the che%$e sho$ld each theCommon sense demands that the che%$e sho$ld each theda+e ,an: +ithin the &alidit* eiod.da+e ,an: +ithin the &alidit* eiod.
et$n memo ,* the da+e ,an: to the da+ee ,an: andet$n memo ,* the da+e ,an: to the da+ee ,an: ands$,se%$entl* ,* the da+ee ,an: to the da+ee eotin' thats$,se%$entl* ,* the da+ee ,an: to the da+ee eotin' thatthe che%$e 'ot $naid is m$st.the che%$e 'ot $naid is m$st. easons fo dishono$ is noteasons fo dishono$ is notmateial at this sta'e.mateial at this sta'e.
Gi&in' notice to the da+e of the che%$e ,* the da+ee o theGi&in' notice to the da+e of the che%$e ,* the da+ee o the
holde of the che%$e in d$e co$se is m$st fo ma:in' the saidholde of the che%$e in d$e co$se is m$st fo ma:in' the saida*ment +ithin fifteen da*s.a*ment +ithin fifteen da*s. The notice m$st ,e sent to da+eThe notice m$st ,e sent to da+e+ithin 1! da*s+ithin 1! da*s (amended to 3; da*s ,* the
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S$eme Co$t also held in =. #has:aanS$eme Co$t also held in =. #has:aan
s. San:aan aid*an #alan>s. San:aan aid*an #alan>
It9s not necessary that all the fi"e acts shoul! ha"e beenIt9s not necessary that all the fi"e acts shoul! ha"e been
(er(etrate! at the same locality* It is (ossible that each of(er(etrate! at the same locality* It is (ossible that each ofthose fi"e acts coul! be !one at fi"e !ifferent areas*those fi"e acts coul! be !one at fi"e !ifferent areas*
In this conte3t a reference toIn this conte3t a reference to section 1 7!8 of the 4r* P* 4* issection 1 7!8 of the 4r* P* 4* is
useful:useful:
6here the offence consists of6here the offence consists of
se"eral acts !one in !ifferent localse"eral acts !one in !ifferent localareas. it may be in5uire! into ofareas. it may be in5uire! into of
trie! by a court ha"ing %uris!ictiontrie! by a court ha"ing %uris!iction
o"er any of such local areas*o"er any of such local areas*
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;oreo"er the section;oreo"er the section 1
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New setions in theNew setions in the
Chapter XVIIChapter XVII
Section 139Section 139::
2y this section it shall be2y this section it shall be(resume! that the hol!er of(resume! that the hol!er of
a che5ue recei"e! thea che5ue recei"e! theche5ue for the !ischarge ofche5ue for the !ischarge ofsome liability or any !ebt*some liability or any !ebt*
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New setions in theNew setions in the
Chapter XVIIChapter XVII
Section 140Section 140::
This section says that !efence inThis section says that !efence in
the (rosecution un!er sectionthe (rosecution un!er section
1
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New setions in theNew setions in the
Chapter XVIIChapter XVII
Section 141Section 141::
This section !efines that if anThis section !efines that if an offenceoffencedone by any company done by any company . the (erson=s. the (erson=s
shall be hel! liable #ho #ere inshall be hel! liable #ho #ere incharge an! res(onsible to thecharge an! res(onsible to the
com(any. for the con!uct of thecom(any. for the con!uct of thebusiness of the com(any. at the timebusiness of the com(any. at the time
the offence un!er section1
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1/ amen!ment1/ amen!ment
TheThe o,/ecto,/ect of theof theamen!ment #as. >toamen!ment #as. >to
enhance the acce(tabilityenhance the acce(tabilityof che5ues in settlementof che5ues in settlementof liabilities by ma'ing theof liabilities by ma'ing the
!ra#er liable for (enalties!ra#er liable for (enaltiesin case of bouncing ofin case of bouncing ofche5ues?*che5ues?*
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Supreme CourtSupreme Court e9amined>e9amined>
The provisions of sections The provisions of sections
138 and 1)1 of the *ct138 and 1)1 of the *ct
and noted thatand noted that meremere
dishonour of a chequedishonour of a cheque
ould not raise a causeould not raise a cause ofofaction unless the pa!ee ma+es aaction unless the pa!ee ma+es a
demand in riting to the draer of thedemand in riting to the draer of thecheque for the pa!ment and draercheque for the pa!ment and draer
fails to ma+e the pa!ment of the saidfails to ma+e the pa!ment of the said
amount of mone! to the pa!ee.amount of mone! to the pa!ee.
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Section 1)1:Section 1)1:
The cha(ter @$II of the Act gaine! muchThe cha(ter @$II of the Act gaine! muchim(ortance among com(anies !ue to theim(ortance among com(anies !ue to the
sectionsection 141141 because. this is the section.because. this is the section.through #hich the (ersons shall be hel!through #hich the (ersons shall be hel!
liable for the con!uct = offence committe!liable for the con!uct = offence committe!un!er the Act by a com(any*un!er the Act by a com(any*
The section also ga"e a reason to thin' t#iceThe section also ga"e a reason to thin' t#ice
to the res(onsible (erson=s of a com(anyto the res(onsible (erson=s of a com(any#ho ma'es commitment for an! on behalf#ho ma'es commitment for an! on behalfof the com(any to (ay someone throughof the com(any to (ay someone throughnegotiable instrument=s*negotiable instrument=s*
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6oe O&e -om ;".;
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2002
Amendment Amendment Another amen!ment came into force from Another amen!ment came into force from
#$%#2%2##$%#2%2##& asas
Ne'otia,le Inst$ments (Amendment andNe'otia,le Inst$ments (Amendment and6iscellaneo$s ?o&isions) Act2
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2002
Amendment Amendment SectionSection 1'2)b*1'2)b* amen!e! by the insertion of aamen!e! by the insertion of a
(ro"iso: >(ro"iso: >Pro"i!e! that the cogniance of aPro"i!e! that the cogniance of acom(laint may be ta'en by the court aftercom(laint may be ta'en by the court afterthe (rescribe! (erio!. if the com(lainantthe (rescribe! (erio!. if the com(lainant
satisfies the court that he ha! sufficientsatisfies the court that he ha! sufficientcause for not ma'ing a com(laint #ithincause for not ma'ing a com(laint #ithinsuch (erio!*such (erio!*??
Note: Prior to this amen!ment there #as noNote: Prior to this amen!ment there #as no(ro"ision in the Act for the con!onation of(ro"ision in the Act for the con!onation of!elay in (referring the com(laint un!er!elay in (referring the com(laint un!ersection 1
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2002
Amendment Amendment ;oreo"er ne# sections from;oreo"er ne# sections from 1'& to1'& to
1'+ 1'+ ha"e beenha"e been inserte! for theinserte! for the
s(ee!y !is(osal of the cases un!ers(ee!y !is(osal of the cases un!er
section 1
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New setionsNew setions
inserte! throu"hinserte! throu"hthe #$$#the #$$#
amen!ment%amen!ment%Section 143Section 143::
This section (ro"i!es the (o#er toThis section (ro"i!es the (o#er tocourts to try cases. un!er sectioncourts to try cases. un!er section1
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New setionsNew setions
inserte! throu"hinserte! throu"hthe #$$#the #$$#
amen!ment%amen!ment%Section 144Section 144::
This section (ro"i!es that theThis section (ro"i!es that the
co(y ofco(y of summon=s may also besummon=s may also be
issue! by s(ee! (ost or byissue! by s(ee! (ost or by suchsuch
courier ser"icescourier ser"ices as areas are
a((ro"e! by a court of session*a((ro"e! by a court of session*
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New setionsNew setions
inserte! throu"hinserte! throu"hthe #$$#the #$$#
amen!ment%amen!ment%Section 145Section 145::This section (ro"i!es that theThis section (ro"i!es that the e"i!encee"i!ence
of a com(lainantof a com(lainant may be gi"en bymay be gi"en by him inhim in an affi!a"itan affi!a"it an! that #ill bean! that #ill be
rea! in e"i!ence. an! the court. if itrea! in e"i!ence. an! the court. if itthin's fit. shall on a((lication of thethin's fit. shall on a((lication of the
(rosecution or the accuse!. summon(rosecution or the accuse!. summonan! e3amine any (erson #ho isan! e3amine any (erson #ho is
gi"ing e"i!ence on affi!a"it*gi"ing e"i!ence on affi!a"it*
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New setionsNew setions
inserte! throu"hinserte! throu"hthe #$$#the #$$#
amen!ment%amen!ment%Section 146Section 146::
This section (ro"i!es theThis section (ro"i!es the courtcourtshall (resume the fact ofshall (resume the fact of!ishonour !ishonour of a che5ue onof a che5ue on
(ro!uction of 2an'9s sli( or(ro!uction of 2an'9s sli( ormemo ha"ing thereon thememo ha"ing thereon the
official mar' !enoting that theofficial mar' !enoting that theche5ue has been !ishonoure!*che5ue has been !ishonoure!*
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New setionsNew setions
inserte! throu"hinserte! throu"hthe #$$#the #$$#
amen!ment%amen!ment%Section 147Section 147::
E"eryE"ery offenceoffence (unishable un!er(unishable un!erthis Actthis Act shall be com(oun!ableshall be com(oun!able**
6hich means that a com(romise6hich means that a com(romisein the matters un!er section 1
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6eanin' of Como$nda,le6eanin' of Como$nda,le
in 138 N. I. Act>in 138 N. I. Act>
The case may be close! an! the accuse!The case may be close! an! the accuse!may be !ischarge!. by the magistrate butmay be !ischarge!. by the magistrate butonly on his sole !iscretion. if someonly on his sole !iscretion. if somesettlement e3ecute! bet#een thesettlement e3ecute! bet#een thecom(lainant an! the accuse! an! thecom(lainant an! the accuse! an! the
com(lainant ga"e his statement before thecom(lainant ga"e his statement before themagistrate that he #ant to close the mattermagistrate that he #ant to close the matteran! they 7com(lainant an! the accuse!8an! they 7com(lainant an! the accuse!8ha"e settle! u(on a certain con!itions an!ha"e settle! u(on a certain con!itions an!no# the com(lainant has no moreno# the com(lainant has no more
grie"ance against the accuse!*grie"ance against the accuse!*
4om(oun!ing can be !one at any stage of4om(oun!ing can be !one at any stage ofthe case #hether it is before the originalthe case #hether it is before the originalmagistrate or before any a((ellate authority*magistrate or before any a((ellate authority*
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Some frequentl! as+ed queries on the chapterSome frequentl! as+ed queries on the chapter
of section 138 of the act:of section 138 of the act:
What is ?a* ode and olde in 0$e Co$seWhat is ?a* ode and olde in 0$e Co$seBB Su(reme court hel! in the matter ofSu(reme court hel! in the matter of ?$n/a, and Sindh?$n/a, and Sindh
#an: s in:a Saha:ai #an: Ltd. and os.#an: s in:a Saha:ai #an: Ltd. and os. 7AIR +CC17AIR +CC1S4
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Some frequentl! as+ed queries on the chapterSome frequentl! as+ed queries on the chapter
of section 138 of the act:of section 138 of the act:
Whee does the Nominee 0iectoWhee does the Nominee 0iecto
StandStandBB Su(reme 4ourt obser"e! in Pun%ab National 2an'Su(reme 4ourt obser"e! in Pun%ab National 2an'
$s* Suren!ra Prasa! Sinha 7AIR 1//+ S4 11F8$s* Suren!ra Prasa! Sinha 7AIR 1//+ S4 11F8 The ans#er is that a nominee !irector en%oys fullThe ans#er is that a nominee !irector en%oys full
immunity un!er the ne#ly enacte! (ro"isions of theimmunity un!er the ne#ly enacte! (ro"isions of theNegotiable instruments Act*Negotiable instruments Act*
2asically a2asically a Nominee irector is a (erson a((ointe!Nominee irector is a (erson a((ointe!in a com(any for obser"ationin a com(any for obser"ation by some otherby some othercom(any 7mainly financial or go"ernmental8 #hosecom(any 7mainly financial or go"ernmental8 #hoseinterest in"ol"e in the business of the sai! com(anyinterest in"ol"e in the business of the sai! com(any
A nominee diecto A nominee diecto #hose (osition#hose (osition isis (urely non0(urely non0e3ecuti"e in the boar! of a com(anye3ecuti"e in the boar! of a com(any f$ll* otectedf$ll* otected
a'ainst osec$tion and haassment $ndea'ainst osec$tion and haassment $ndesection 11section 11**
The "icarious liability of a (erson for beingThe "icarious liability of a (erson for being(rosecute! for an offence committe! by a com(any(rosecute! for an offence committe! by a com(anyarises if at the material time he #as in charge of an!arises if at the material time he #as in charge of an!res(onsible to the com(any for the con!uct of itsres(onsible to the com(any for the con!uct of its
business*business*
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Some frequentl! as+ed queries on the chapterSome frequentl! as+ed queries on the chapter
of section 138 of the act:of section 138 of the act:
Weathe a Non#aila,leWeathe a Non#aila,leWaant Can ,e iss$ed fo theWaant Can ,e iss$ed fo theoffence $nde section 138offence $nde section 138BB
;a!ras High 4ourt Obser"e!:;a!ras High 4ourt Obser"e!:
Personal liberty of a (erson is (rotecte!Personal liberty of a (erson is (rotecte!un!er Article +1 of the 4onstitution Of In!ia*un!er Article +1 of the 4onstitution Of In!ia*Therefore a Non02ailable #arrant shall notTherefore a Non02ailable #arrant shall notbe issue! un!er section 1
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Some frequentl! as+ed queries on the chapterSome frequentl! as+ed queries on the chapter
of section 138 of the act:of section 138 of the act:
Can second notice of demandCan second notice of demandfom da+e 'a&e a ne+fom da+e 'a&e a ne+ca$se to the da+eeca$se to the da+eeBB
The ans#er isThe ans#er is NO.NO. the !ra#ee. of a che5ue that isthe !ra#ee. of a che5ue that is
!ishonoure!. has only one life i*e*!ishonoure!. has only one life i*e*only one cause for action that he hasonly one cause for action that he hasto use #ithin the (rescribe! time an!to use #ithin the (rescribe! time an!
file the case* Else. this #ill become afile the case* Else. this #ill become atechnical !efence that the court #illtechnical !efence that the court #illha"e to u(hol!*ha"e to u(hol!*
ItBs a technical defence fo theItBs a technical defence fo the
acc$sed.acc$sed.
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Some frequentl! as+ed queries on the chapterSome frequentl! as+ed queries on the chapter
of section 138 of the act:of section 138 of the act:
?ost0ated Che%$e (?0C) is a?ost0ated Che%$e (?0C) is aalid Inst$mentalid Inst$mentBB
The ans#er isThe ans#er is es es..
Su(reme 4ourt in Asho' -ash#antSu(reme 4ourt in Asho' -ash#ant2a!"e $s Suren!ra ;a!ha"rao2a!"e $s Suren!ra ;a!ha"raoNigho%'ar an! anr* 7Nigho%'ar an! anr* 7 AIR +CC1 S4 1
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Some frequentl! as+ed queries on the chapterSome frequentl! as+ed queries on the chapter
of section 138 of the act:of section 138 of the act:
Shall Section 138 al* in case of a 0isnono$edShall Section 138 al* in case of a 0isnono$edChe%$e da+n +itho$t an* lia,ilit* to a*Che%$e da+n +itho$t an* lia,ilit* to a*BB
Che%$e sho$ld ha&e ,een da+n ,* theChe%$e sho$ld ha&e ,een da+n ,* theda+e in a*ment of a le'al lia,ilit* toda+e in a*ment of a le'al lia,ilit* todischa'e the e9istin' de,t.discha'e the e9istin' de,t.
Su(reme 4ourt in 4* Anthony $s *Su(reme 4ourt in 4* Anthony $s *Ragha"an Nair 7Ragha"an Nair 7+CC+ SOL 4ase No*FFC+CC+ SOL 4ase No*FFCsu(remecourtonline*comsu(remecourtonline*com8 has resol"e! the issue*8 has resol"e! the issue*
It is necessary for the !ra#ee= com(lainantIt is necessary for the !ra#ee= com(lainantto (ro"e before the court that the che5ueto (ro"e before the court that the che5ue#as recei"e! by him in the !ischarge of#as recei"e! by him in the !ischarge of
some liability*some liability* If com(lainant coul! not (ro"e that theIf com(lainant coul! not (ro"e that the
che5ue #as in the !ischarge of someche5ue #as in the !ischarge of someliability. the com(laint #ill be !ismisse! an!liability. the com(laint #ill be !ismisse! an!the accuse! #ill be ac5uitte!*the accuse! #ill be ac5uitte!*
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Some frequentl! as+ed queries on the chapterSome frequentl! as+ed queries on the chapter
of section 138 of the act:of section 138 of the act:
Who can ta:e co'niDance of theWho can ta:e co'niDance of theoffence $nde section 138offence $nde section 138BB
As (er the As (er the Section 1D+ 7c8Section 1D+ 7c8 of the Act*of the Act*
No court inferior to a ;etro(olitanNo court inferior to a ;etro(olitan
;agistrate or a Ju!icial ;agistrate can try;agistrate or a Ju!icial ;agistrate can trythe offence*the offence*
Supreme Court Case%Supreme Court Case%
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Supreme Court Case%Supreme Court Case%
. Bhaskaran. Bhaskaran
VsVs
Sankaran Vai!yan Ba'anSankaran Vai!yan Ba'an
A case bet#een t#o brothers for the A case bet#een t#o brothers for the
offence un!er section1
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Section &,%&( of -r. P. -.:Section &,%&( of -r. P. -.:
ine can not be more thanine can not be more than
/s.0#'''2/s.0#'''2
n the previous case the Supreme -ourtn the previous case the Supreme -ourtalso held that the appellate court shallalso held that the appellate court shallnot in4ict greater punishment for thenot in4ict greater punishment for the
o5ence hich in its opinion the accusedo5ence hich in its opinion the accusedhas committed# then might have beenhas committed# then might have beenin4icted for that o5ence b! the courtin4icted for that o5ence b! the courtpassing the order or sentence underpassing the order or sentence underappeal.appeal.
n this conte"t a reference to section &,%&(n this conte"t a reference to section &,%&(of the -r. P. -. is necessar! as it containsof the -r. P. -. is necessar! as it containsa limitation for the magistrate of $rsta limitation for the magistrate of $rstclass in the matter of imposing $ne as aclass in the matter of imposing $ne as asentence or as a part of the sentence.sentence or as a part of the sentence.
l h i hi
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6oaplast 7s Shri -hico6oaplast 7s Shri -hico
rsula 9 Sou;arsula 9 Sou;a
Stop Pa!ment nstructionsStop Pa!ment nstructions ill not ta+e a case out of theill not ta+e a case out of thepurvie of Section 138# it haspurvie of Section 138# it has
elaborated on the reasons h! thiselaborated on the reasons h! this
should be so.