Magistrate’s 202(1) Inquiry by Affidavit in Section 138 NI Cases

In cheque dishnour cases, when the accused resides beyond the territorial jurisdiction of the court, the inquiry to be conducted under Section 202 of the Code of Criminal Procedure (CrPC), shall be conducted on affidavit, on receipt of complaints under Section 138 of the Negotiable Instruments Act (NI Act) to arrive at sufficient grounds to proceed against the accused. This was issued by the Suprem Court (SC) in the suo moto case in a constitutional Bench case : In re: Expeditious Trial of Cases Under Section 138

Court can Compare Signatures in Cheque & with Bank

In a cheque case under Section 138 of the Negotiable Instruments Act (NI Act), if the accused disputes the signature on the cheque, then the court can summon certified copies of the specimen signature, which is admissible under Bankers’ Book of Evidence Act, 1891, from the bank to compare it with the signature appearing on the cheque under Section 73 of the Indian Evidence Act, 1882 (IEA), says the Supreme Court (SC) in Ajitsinh Chehuji Rathod v State of Gujarat and another.

What does the term Month in Statutes Mean?

In Rameshchandra Ambalal Joshi v State of Gujarat & Anr, the Supreme Court of India (SC) discusses how to calculate the word month appears in legal provisions. As per Section 3 (35) of the General Clauses Act, the word month has been defined and it “shall mean a month reckoned according to the British calendar”.

Jurisdiction in Cheque Case u/s 138 of NI Act

The cognizance of the offence in a cheque dishonour case, under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) can be taken by a court not inferior to a First-Class Judicial Magistrate upon a complaint in writing by the payee or the holder in due course of the cheque, to be made within one month of the date on which the cause of action arises.

Deposit of 20% not absolute in Cheque Appeal

Deposit of a minimum 20% of the cheque amount when the appeal court considers an appeal of an accused person convicted for dishonour of cheque under Section 148 of Negotiable Instruments Act, is not an absolute matter, but an exceptional one, says the Supreme Court (SC) in Jamboo Bhandari v MP State Industrial Development Corporation Ltd.

Can a Cheque be Paid after the Death of its Maker?

A cheque which has been issued by a person but presented by the drawee after his death, cannot be paid by the bank. On the death of the drawer of a cheque, the cheque issued by him ceases to be a valid cheque. The reason is that on the moment of the death of the drawer of the cheque the balance amount available on his bank account will vests in his nominee or legal heir.

Promissory Note : Laws Governing it

Promissory Note is a specific written promise to pay a debt. It is a negotiable instrument. In the instrument, one party (the maker) promises in writing to pay a specific sum of money to the other (the lender) either at a fixed future date or on demand by the lender or his/her orders. The Note is given against the amount of loan the promisor has received.