Negotiable Instruments Act – Dishonour of Cheques – Petitioner issued cheques to the respondent which were dishonoured due to insufficient funds – Legal proceedings under Section 138 of the NI Act initiated – Settlement agreement reached, but petitioner failed to comply fully – Respondent invoked Section 421 of the Cr.P.C. for enforcement – Court upheld the enfo...
Negotiable Instruments Act – Section 138 – Dishonour of cheque – Notice – Petitioners challenged the maintainability of complaints against them due to lack of individual notice – High Court held that notice to the Trust through its Trustees was sufficient, deeming all Trustees to have been served – Complaints were considered maintainable as per the statutory req...
Section 138 of Negotiable Instruments Act – Cheque Dishonour – Conviction and Sentence – The accused was convicted for issuing a dishonoured cheque of ₹7,35,375/- to discharge his liability, and sentenced to simple imprisonment of one year with compensation to the complainant – The conviction was affirmed by the appellate court [Paras 2-5].
Compromi...
Cheque Dishonour – Liability of Sole Proprietor – Petitioners challenged summoning orders under Section 138 of the NI Act, arguing sole proprietor not liable as cheques signed by authorised signatory – Court held sole proprietor liable as cheques issued on behalf of proprietorship firm – Emphasized proprietorship firm not distinct from proprietor [Paras 2-23].
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Negotiable Instruments Act – Appeal Against Conviction – Deposit of 20% Fine Under Section 148 N.I. Act – Exceptional Circumstances – The petitioner challenged the order of the Additional Sessions Judge directing him to deposit 20% of the fine amount as a condition for admitting the appeal against his conviction under Section 138 N.I. Act – Held: The deposit of 20% of...
Criminal Law – Negotiable Instruments Act – Section 138 – Complaint for dishonor of cheques under Section 138 of the NI Act – The petitioner, residing outside the territorial jurisdiction, argued that the Magistrate should have conducted an inquiry under Section 202 CrPC before issuing summons – Held: Under Section 145 of the NI Act, evidence of the complainant can be...
Commercial Courts Act – Definition of Commercial Dispute – Partnership Agreement – The appellants contended that the dispute arising out of a Memorandum of Understanding for the reconstitution of a partnership firm should be classified as a "commercial dispute" under Section 2(1)(c) of the Commercial Courts Act, 2015. However, the court held that the MOU related to a fu...
Negotiable Instruments Act - Validity of Single Complaint for Multiple Cheques – The petitioners challenged the validity of a single complaint for the dishonor of 36 cheques, arguing that this violates Section 219 Cr.P.C., which restricts trial for multiple offences to a maximum of three instances of the same kind within a 12-month period. The Court held that, given that all cheques were iss...
Section 138 N.I. Act - Forensic Examination – Application for Further Examination Denied - The petitioner, accused under Section 138 of the NI Act, sought to send the disputed cheques for a second forensic examination by the Central Forensic Science Laboratory after receiving an unfavorable report from the State Forensic Science Laboratory. The Court upheld the Magistrate's decision, rej...
Negotiable Instruments – Dishonor of Cheque – Legally Enforceable Debt – The appellant filed a complaint under Section 138 of the NI Act against the respondent, alleging that the respondent issued a cheque of ₹1,00,000 as part of a settlement, which was dishonored – The trial Court acquitted the respondent, holding that the cheque amount was intended as a bribe to secure ...