Negotiable Instruments – Presumption of Consideration – Burden of Proof – Section 118 of the Negotiable Instruments Act – Rebuttal by Circumstantial Evidence – Held: The statutory presumption under Section 118 that every negotiable instrument or endorsement is made for consideration is rebuttable – The burden initially rests on the plaintiff to prove execution, ...
Criminal Law – Sections 7 and 12 of PC Act - Discharge – Prima Facie Case – Application under Section 239 CrPC by public servant accused of abetting co-accused in demanding illegal gratification for unfreezing bank accounts – Applicant alleged to have prepared and shared Excel sheets containing account details of 300+ individuals, which were misused by co-accused – Tr...
Negotiable Instruments Act – Dishonour of Cheque – Complaint Against Trustee Without Trust as Party – Maintainability – Sections 138, 141, NI Act – Question whether complaint under NI Act is maintainable against the Chairman/Trustee of a Trust without arraying the Trust as an accused – Held: A Trust is not a juristic person capable of suing or being su...
Negotiable Instruments Act, 1881 – Section 141 – Vicarious Liability – Complaint Requirements – Held: It is necessary to specifically aver in a complaint that the accused, at the time of the offence, was in charge of and responsible for the conduct of the business of the company – Mere designation as a Director is not sufficient to make one liable – Managing Dir...
Negotiable Instruments Act – Section 138 – Ingredients – Dishonour of Cheque – Cheque dishonoured with remark “reported lost by drawer” – No allegation of insufficiency of funds – Complainant issued statutory notice and filed complaint – Appellant sought quashing under Section 482 CrPC – Held: Penal liability under Section 138 arises only...
SARFAESI Act – Constitutional Validity – Sections 13, 15, 17, 34 – Upheld Except Section 17(2) – The Act was challenged as arbitrary and violative of Articles 14 and 21 – Held: All provisions valid except Section 17(2), which required 75% pre-deposit and was struck down as arbitrary, onerous and violative of Article 14 – The Act otherwise serves public interest ...
Negotiable Instruments Act – Section 148 – Conditional Deposit for Appeal – Conviction under Section 138 NI Act challenged in appeal – Appellate Court directed deposit of 30% compensation amount as condition for hearing – Petitioners alleged they were not granted opportunity to oppose application under Section 148 and cited exceptional circumstances including lack of ...
Negotiable Instruments Act – Suspension of Sentence – Conditional Deposit – Appellate Court had suspended the sentence under Section 138 NI Act, subject to deposit of 20% of compensation – Petitioner challenged the condition citing financial hardship and failure to record reasons by the Appellate Court – Held: As per Supreme Court in Jamboo Bhandari and Muskan Enterpr...
Negotiable Instruments Act – Section 148 – Suspension of Sentence – Deposit of 20% – Not Mandatory – Held: The deposit of 20% of compensation amount under Section 148 NI Act is not an absolute precondition for suspension of sentence – The word "may" in Section 148(1) confers discretionary power on the Appellate Court – It can be waived or reduced...
Negotiable Instruments – Dishonour of Cheque – Secondary Evidence – Xerox copy of cheque permitted as secondary evidence when original was produced, verified, endorsed and later lost – Trial Court order refusing secondary evidence set aside.
Evidence Act – Secondary Evidence – Sections 63 & 65 – Principles reiterated – General rule requires pr...