Supreme Court Strikes Down Expulsion of Bihar MLC as Disproportionate, Orders Immediate Reinstatement Private Banks Not Subject to Writ Jurisdiction Under Article 226: Punjab & Haryana High Court Mere Allegation of Forgery is Not Enough: Madhya Pradesh High Court Dismisses Second Appeal in Partition Dispute When a Case is Made Out for Bail, Courts Should Not Hesitate: Kerala High Court Allows Bail Despite Commercial Quantity of Drugs Seized Retailers Cannot Be Prosecuted for Manufacturer’s Fault" – Karnataka High Court Quashes Case Against Pesticide Dealers Mere Issuance of a Cheque Does Not Prove Legally Enforceable Debt": Delhi High Court Upholds Acquittal in Cheque Dishonor Case Courts Cannot Ignore Urgent Repairs When Public Safety is at Stake: Calcutta High Court Upholds Trial Court's Order Mutation Entries Do Not Confer Ownership: Bombay High Court Rejects Premature Dismissal of Partition Suit No Substantial Question of Law – High Court Cannot Re-Appreciate Evidence Under Section 100 CPC: Andhra Pradesh High Court Injunction Cannot Be Granted Without Proof of Possession: Allahabad High Court Quashes Relief in Land Dispute Section 197 CrPC | Sanction for Prosecution is a Shield, Not a Sword: Supreme Court Quashes Criminal Case Against BIS Officer Landlord is the Best Judge of His Needs: Supreme Court Orders Eviction in Favor of Landowner Vijaya Bank TT Scam | Supreme Court Acquits Jeweller in ₹6.7 Crore Vijaya Bank Fraud Case, Orders Return of 205 Gold Bars Procurement Preference for Small Enterprises is a Legal Mandate, Not a Mere Policy: Supreme Court Rules in Favor of MSMEs Revisional Jurisdiction Cannot Be Invoked Against Interlocutory Orders of Commercial Courts: Orissa High Court Declares Section 8 Bar Absolute Victim’s Testimony Must Be of Sterling Quality to Be Sole Basis of Conviction: Kerala High Court Reduces Sentence of Pastor Convicted for Repeated Rape of Minor Providing Set-Top Boxes to Subscribers Constitutes Sale”: Karnataka High Court Upholds VAT on Tata Play Limited Mere Registration of FIR Cannot Justify Denial of Passport Renewal: Jammu & Kashmir and Ladakh High Court

"CHEQUE BOUNCE & BANKING LAW" Digest

Negotiable Instruments Act – Dishonor of Cheques – Rebuttal of Presumption – Sections 118(a) & 139 NI Act – Accused Successfully Discharged Burden – Petitioner Failed to Prove Legally Enforceable Debt – Held: The respondent rebutted the presumption under Sections 118(a) & 139 of the NI Act by establishing that the cheques in question were not issued for ...

Negotiable Instruments – Presumption of Validity – Burden of Proof – Second Appeal Dismissed – Suit filed for recovery of ₹37,890/- based on a promissory note (Ex.A1) executed by the deceased borrower, Rasappa Gounder – Defendants, legal heirs of the deceased, denied execution and alleged forgery of the promissory note – Trial Court decreed the suit, holding t...

Negotiable Instruments Act – Dishonour of Cheque – Compounding of Offence – Effect on Conviction – The petitioner was convicted under Section 138 NI Act for dishonour of a cheque for ₹8,85,000/- – The conviction and sentence were upheld by the appellate court – During pendency of the revision, parties amicably settled the dispute and entered into a Joint Memor...

Criminal Law – Dishonour of Cheque – Appeal Against Acquittal -  Validity of System-Generated Cheque Return Memo – Section 146 of NI Act – The trial court rejected the cheque return memo (Exhibit-2) on the ground that it did not bear an official seal or signature of the bank. However, Section 146 of the NI Act presumes a bank’s slip or memo denoting dishonour to ...

Criminal Law - Adjournments – Excessive and Repeated Requests – Court’s Duty to Prevent Abuse of Process – Repeated adjournments sought by the petitioner/accused for leading defence evidence were granted, including a final opportunity on 11/11/2024 – Despite this, no evidence was produced on 21/12/2024 – Held: The petitioner’s conduct was aimed at delaying...

Negotiable Instruments Act – Interim Compensation – Prospective Effect of Section 143A – Amendment introducing Section 143A is prospective in operation – Provision applies only to complaints filed after its enactment on 01.09.2018 – Imposition of interim compensation on complaints filed prior to this date is impermissible – Held: Legislative intent and settled p...

Dishonour of Cheque – Presumption under Section 139 N.I. Act – Rebuttal by Accused – Acquittal Upheld - The appellant alleged that the respondent borrowed Rs. 5,00,000 and issued a cheque, which was dishonoured for insufficient funds – The appellant argued that the memorandum of understanding executed by the respondent during the pendency of the case admitted the debt and i...

Section 138, NI Act – Quashing - Director’s Resignation – Issuance of Cheques Post-Resignation – Section 138 and 141 of the NI Act – Complaint Quashed – The appellant ceased to be a director of the company before the cheques were issued and dishonored – The fact of resignation was undisputed and acknowledged by the Registrar of Companies – Held: The ...

Negotiable Instruments Act – Section 148 – Deposit of Compensation – Legislative Intent – High Court dismissed subsequent petition under Section 482 CrPC for lack of leave in an earlier withdrawal – Held: Section 148 allows appellate discretion to waive the 20% deposit in exceptional cases – Appellants’ second petition maintainable due to subsequent clarif...

Criminal Law – Special Leave to Appeal – Petition filed under Section 378 (3) Cr.P.C. – Assailing acquittal in cheque bounce case where cheque issued by respondent was dishonored due to insufficient funds – Trial court acquitted respondent – Petitioner sought leave to appeal [Paras 1-4].   Section 138, 139 of Negotiable Instruments Act – Presumption a...