In Cheque Case, Appeal against Acquittal lies to HC
The appeal against the acquittal of the accused in a cheque bounce case can be filed only before the High Court, says the Calcutta High Court in Ms. Todi Investors v Ashis Kumar Dutta & Another.
Company is the accused in Company Cheque Cases
An authorised signatory of a company or firm will not be liable for prosecution in a cheque case, under section 138 of the Negotiable Instrument Act (NI Act) without the companies arraigned as an accused. This is what the High Court of Kerala says in Velayudhan Pilla S v Chellath Franklin and Another (2021 (1) KLD 753).
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.
Cheque Dishonour Cases u/s N I 138
The five elements of a cheque dishonor case are drawing the cheque by the accused on an account maintained by him, presentation of the cheque to the Bank by the payee, returning the cheque unpaid by the drawee bank, the payee issuing a demand notice to the drawer of the cheque, and the failure on the part of the drawer to make payment within 15 days of the receipt of notice.
When the five elements exist then the payee has a valid ground for filing a cheque case. The Magistrate while taking cognizance has to look into whether the ingredients have been made out.
Speeding up Cheque Cases: SC Guidelines
A set of guidelines have been issued by the Supreme Court (SC) in speeding up cheque cases, in a judgement delivered on 5th March 2020 in Makwana Mangaldas Tulsidas v…