Promissory Note : Laws Governing it

31 May 2021Posted inCivil law, Negotiable Instruments
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

22 May 2021Posted inNegotiable Instruments
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.