Cases on negotiable instruments act

security cheque indian kanoon

That the High Court did not returned any finding that order of conviction based on evidence on record suffers from any perversity or based on no material or there is other valid ground for exercise of revisional jurisdiction.

This interim compensation may be paid either in a summary trial or a summons case where the drawer pleads not guilty to the accusation made in the complaint; or upon framing of charge in any other case.

Cases on negotiable instruments act

The prosecution and recovery mechanism under Sections to of the Act was introduced by the Amendment with the objective of deterrence for enhancing credibility of cheque issuances in business transactions. The bank would be acting against law in debiting the customer with the amounts covered by such cheques. Magistrates must take suo moto action and a four hearing procedure should be followed. This has been achieved by deeming the commission of an offence dehors mens rea not only under Section but also by virtue of the succeeding two sections. Maregowda v. Mukesh Kumar, 4 SCC There is no trace of doubt that the company is a juristic person. To rebut the statutory presumptions an accused is not expected to prove his defence beyond a reasonable doubt as is expected of the complainant in a criminal trial. At the third hearing cross examination should be conducted. Vasanthakumar v. That a bare reading of the complaint as well as the relevant law, on the face of it, makes it clear that the offence is not made out against the present petitioner as she neither issued the cheque and it has not been attributed to her and the allegation was that she had handed over the cheques which does not mean she had consented to offence by any stretch of imagination.

Therefore, the Amendment Act aims to give potency in enforcing quick relief and to act as a deterrent for future cases by enhancing credibility of cheques as a negotiable instrument. Parameswaran Unni v.

Dalal v.

court cases involving negotiable instruments

Only if the accused contests, need for appearance of parties may arise which may be through Counsel and wherever viable, video conferencing can be used.

Unquestionably, the added clauses, that is, sections A andwill give teeth to the existing scheme of sections towhich in effect is a departure from the provisions of the Code of Criminal Procedure and the Evidence Act.

In the wake of current scenario, The Negotiable Instruments Amendment Act, passed by both the houses Lok Sabha on July 23, ; Rajya Sabha on July 26, ; and notified on August 02, has come as a breather for the aggrieved Drawees.

The complainant has to prove that the cheque which bounced was issued for discharging the debtor legal liability in whole or in part.

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Payment may be made within 15 days of receiving summons if Notice not received Any drawer who claims that he did not receive the notice sent by post, can, within 15 days of receipt of summons from the court in respect of the complaint under Sectionmake payment of the cheque amount and submit to the court that he had made payment within 15 days of receipt of summons by receiving a copy of complaint with the summons and, therefore, the complaint is liable to be rejected, C.

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IMPORTANT JUDGMENTS ON CHEQUE BOUNCE/SECTION OF NI ACT