Join our Law Notes WhatsApp Group and stay updated with Legal and Judicial Updates
Section 138 of Negotiable Instruments Act, 1881
Section 138 of Negotiable Instruments Act, 1881 deals with Dishonour of cheque for insufficiency, etc., of funds in the account.
From the Act
Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid. either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice. to any other provision of this Act, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to twice the amount of the cheque, or with both:
Provided that nothing contained in this section shall apply unless-
(a)the cheque has been, presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier;
(b)the payee or the holder in due course. of the cheque as the case may be, makes a demand for the payment of the said amount of money by giving a notice, in writing, to the drawer of the cheque, within fifteen days of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and
(c)the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice.
For the purposes of this section, "debt or other liability" means a legally enforceable debt or other liability.
Related Cases / Recent Cases / Case Laws
- K Sitaram and Another v CFL Capital Financial Service Ltd and Another, Criminal Appeal Jurisdiction, Criminal Appeal No. 2285 OF 2011, Supreme Court of India judgment dated March 21, 2017
- Vijayander Kumar and Others v State of Rajasthan and Another, Criminal Appeal Jurisdiction, Criminal Appeal No. 1297 OF 2004, Supreme Court of India judgement dated February 11, 2014
- T Vasanthakumar v Vijayakumari, Criminal Appeal Jurisdiction, Criminal Appeal No. 728 OF 2015, Supreme Court of India judgement dated April 28, 2015
- HMT Watches Ltd v M A Abida and Another, Criminal Appeal Jurisdiction, Criminal Appeal No. 471 OF 2015, Supreme Court of India judgement dated March 19, 2015
- K K Singhal and Others v Steel Strips Ltd, Criminal Appeal Jurisdiction, Criminal Appeal No. 2546 OF 2014, Supreme Court of India judgement dated December 9, 2014
- M s Apex Distributors and Others v M s Timex Group India Ltd and Others Transfer Petition (Crl) 197 / 2012, Criminal Original Jurisdiction, Writ Petition No 197 / 2012, Supreme Court of India judgement dated August 5, 2014 dealt with jurisdiction in regard to cases filed under Negotiable Instruments Act, 1881
- Veera Exports Vs T Kaluvathy AIR 2002 SC 38: A negotiable instrument including a cheque can be re-validated.
- Chandran Ratnaswami v K C Palanisamy and Others, Civil Appeal Jurisdiction, Civil Appeal No. 4540 OF 2013, Supreme Court of India judgement dated May 9, 2013
- Indra Kumar Patodia and Another Vs Reliance Industries Ltd and Others, Criminal Appeal No. 1837 OF 2012 (Arising out of S.L.P. (Crl.) No. 8255 of 2010) with Criminal Appeal No. 1838 OF 2012 (Arising out of S.L.P. (Crl.) No. 9537 of 2010), Supreme Court of India judgement dated November 22, 2012
- Rev Mother Marykutty Vs Reni C Kottaram and Another, Criminal Appeal No. 1594 of 2012, Supreme Court of India judgement dated October 12, 2012
Other Sections from the Act
- Section 1: Short title
- Section 3: Interpretation
- April 23, 2015: Trials Under Negotiable Instruments Act