A challenge to the validity of section 142 2 of the negotiable instruments act recently led the madras high court to reiterate that subsequent legislation can take away the basis of a judgment through validating acts. Negotiable instruments means promissory note bills of exchange or cheque payable either to order or to bearer. Subject to the provisions of this act, when the instrument is dishonored by nonpayment, an immediate right of recourse to all parties secondarily liable thereon accrues to the holder. A complaint against an offence under section 8 of the negotiable instrument act, 1881.
May 07, 2019 it envisages service of a notice upon the drawer of the instrument calling upon him to make the payment covered by the cheque and permits prosecution only after the expiry of the statutory period and upon failure of the drawer to make the payment within the said period. 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. As per section 142 of the negotiable instrument act cognizance of offences a no court shall take cognizance of any offence punishable under section 8 except upon a complaint, in writing, made by the payee or, as the case may be the holder in due course of the cheque. Prosecution in such cases can, therefore, be launched against the drawer of th cheque only before the court within whose jurisdiction the dishonour takes. The negotiable instruments amendment and miscellaneous provisions act, 2002 the negotiable instruments amendment and miscellaneous provisions act, 2002appendix iii 55 of 2002 17th december, 2002an act further to amend the negotiable instruments act, 1881, the bankers books evidence act, 1891 and the information technology act, 2000. Therefore, if amended section 148 of the negotiable instruments act, 1881 is purposively interpreted in such a manner, it would serve the objects and reasons of not only amendment in section 148 of the negotiable instruments act, 1881 but also section 8 of the negotiable instruments act, 1881. Whether demand of interest along with the cheque amount in the statutory notice under section 8 of the negotiable instruments act, 1881 would make the statutory notice faulty. It extends to the whole of india but nothing herein contained affects the indian paper currency act, 1871, 3 of 1871. Section 4 of the negotiable instruments act, 1881 defines a promissory note as an instrument in writing not being a bank note or a currency note containing an unconditional undertaking, signed by the maker, to pay a certain sum of money only to or to the order of a certain person or. Prior to the amendment of the negotiable instruments act, 1881, in the year 1988, whereby sections 8 to 142 were inserted, the act of dishonour of cheque was. According to section of the negotiable instruments act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. As per section 142 of the negotiable instrument act cognizance of offences a no court shall take cognizance of any offence punishable under section 8. In the principal act, section 142 shall be numbered as sub section 1 thereof and after. Consequent upon the failure of the drawer to pay the money within the period of 15 days as envisaged under clause c of the proviso to section 8, the liability of the drawer for being prosecuted for the offence he has committed, arises, and the period of one month for filing the complaint under section 142 is to be reckoned accordingly.
The object of section 8 to 142 of the act is to promote the efficacy of the banking operations and to ensure credibility in transacting business through cheques. May 06, 2015 a bill further to amend the negotiable instruments act, 1881. A person must have drawn a cheque on an account maintained by him in a bank for payment of a certain amount of money to another person from out of that account. Whether section 143a of the negotiable instruments act, 1881. The amendments to the negotiable instruments act, 1881 the ni act are focused on clarifying the jurisdiction related issues for filing cases for offence committed us 8 of the ni act. A negotiable instrument is a piece of paper which entitles a person to a sum of money and which is transferable from one person to another by mere delivery or by endorsement and delivery. The negotiable instrument act, 1881 legislative department. Notwithstanding anything contained in the code of criminal procedure. That the accused is guilty of an offence under section 8 of the negotiable instrument act, 1881 and is liable to be punished under section 142 of the said act. Negotiable instruments meaning negotiable instrument are money or cash equivalents. Negotiable instruments amendment act, 2015 to amend ni.
May 16, 2019 however, the special provision of section 8 under the negotiable instruments act, 1881 hereinafter referred to as the nia was inserted with effect from 01. Government notifies negotiable instrument amendment act, 2018. A bill of exchange is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to the bearer of the instrument. The first section in this aspect to be analyzed, would be s. Section 142 in the negotiable instruments act, 1881 indian kanoon. Section 144 in the negotiable instruments act, 1881. Every negotiable instrument shall be governed by the provisions of this act, and no usage or custom at variance with any such provision shall apply to any such instrument. Rules regulations notifications orders circulars statutory ordinance statutes. Analysis of section 142 and section 142a of the negotiable instruments amendment act, 2015 26 of 2015 dealing with the territorial. There were total 142 sections in the negotiable instruments act 1881 when came into force. Analysis of section 142 and section 142 a of the negotiable instruments amendment act, 2015 26 of 2015 dealing with the territorial jurisdiction aspect. In the principal act, section 142 shall be numbered as subsection 1 thereof. Defense which may not be allowed in any prosecution under section 8. For online services of section 8 of negotiable instruments act, send us a copy of cheque along with the cheque return memo on mail the professional charges for issuance of notice under section 8 of the negotiable instruments act are nominal with very quick services.
The negotiable instruments amendment and miscellaneous. The president of india has promulgated the negotiable instruments amendment ordinance, 2015 no. Cognizance of offences notwithstanding anything contained in the code of criminal procedure, 1973 2 of 1974, a no court shall take cognizance of any offence punishable under section 8 except upon a complaint, in writing, made by the payee or, as the case may be, the holder in due course. Dishonour of cheque is an offence under section 8 of the negotiable instrument act ni act. Notwithstanding anything contained in the code of criminal procedure, 1973 2 of 1974, a no court shall take cognizance of any offence punishable under section 8 except upon a complaint, in writing, made by the payee or. Every negotiable instrument is payable at the time fixed therein without grace. May 18, 2019 section 8 of negotiable instruments act has been introduced in the statute book to bring stringent provisions pertaining to financial discipline in business dealings. Effect of recent amendments in negotiable instruments act on the. The negotiable instruments amendment act, 2018 amendment received the assent of the president on 2nd august 2018. The ordinance provides for determination of territorial jurisdiction of courts for trying cases relating to offence of dishonour of cheques under section 8 of the negotiable instruments act, 1881 ni act.
Act delay of 25 days in filing complaint after issuing a hand note high court quashed the complaint as barred by limitation apex court held that since there is no opportunity for explaining delay as the complaint strongly believed that he filed complaint from statutory notice and since. Section 140 in the negotiable instruments act, 1881. Held that section 143a of the negotiable instruments act, 1881 to be prospective in operation and that the provisions of said section 143a can be applied or invoked only in cases where the offence under section 8 of the act was committed after the introduction of said section 143a in the statute book. Whether handwritten notice would constitute a valid notice under the provisions of section 8 of the negotiable instruments act, 1881. Insertion of new section sia after section 81 of the principal act, the following section shall be inserted, namely. Section 8, ni act position of law on cheque bounce and punishment in india download pdf the author, akanksha yadav is a 2nd year student of of dr. Section 8 of negotiable instruments act legal helpline india. The negotiable instruments act, 1881, provides for three instruments namely promissory notes, bills of exchange and cheques. According to sec negotiable instruments act of 1881. Effect of recent amendments in negotiable instruments act.
Negotiable instruments act most litigated issue on. Notwithstanding anything contained in the code of criminal procedure, 1973 2 of 1974 no court shall take cognizance of any offence punishable under section 8 except upon a complaint, in writing, made by the payee or. It shall not be a defence in a prosecution for an offence under section 8 that the drawer had no reason to believe when he issued the cheque that the cheque may be dishonoured on presentment for the reasons. An ordinance further to amend the negotiable instruments. A power of attorney, will be competent to initiate a private complaint by stepping into the shoes of the payee or the holder in due course. Ram manohar lohiya national law university, lucknow, up. In this way, you have committed an offence under section 8 to 142 of the negotiable instruments act. Section 142 of the negotiable instruments act, 1881. The negotiable instruments amendment and miscellaneous provisions act, 2002 the negotiable instruments amendment and miscellaneous provisions act, 2002appendix iii 55 of 2002 17th december, 2002 an act further to amend the negotiable instruments act, 1881, the bankers books evidence act, 1891 and the information technology act, 2000.
The object of sections 8 142 of the negotiable instruments act, 1881 is to promote the efficacy of banking operations and to ensure credibility in transacting business through cheques. Section 148 of the negotiable instruments act, 1881 has. Section 142 of the negotiable instruments act, 1881 kanoonirai. This act may be called the negotiable instruments act, 1881. Negotiable instruments act, 1881 bare acts law library. Until contrary is proved, presumption is in favour of holder of cheque that it was drawn for discharge of debt or liabilities. Section 143a of negotiable instruments act, 1881 has no. Negotiable instruments act, 1881ni act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. The negotiable instruments act, 1881 xxvi of 1881 9th december, 1881. The word negotiable means transferable with respect to consideration and instrument is a written document which creates a right in favour of a person.
These can be converted into liquid cash subject to certain conditions. 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. The updating and uploading of rules, regulations, notifications, etc. Therefore, if amended section 148 of the negotiable instruments act, 1881 is purposively interpreted in such a manner, it would serve the objects and reasons of not only amendment in section 148 of the negotiable instruments act, 1881 but also section 8 of the negotiable instruments act. Whether section 143a of the negotiable instruments act. Jul 15, 2019 therefore, if amended section 148 of the negotiable instruments act, 1881 is purposively interpreted in such a manner, it would serve the objects and reasons of not only amendment in section 148 of the negotiable instruments act, 1881 but also section 8 of the negotiable instruments act, 1881. Be it enacted by parliament in the sixtysixth year of the republic of india as follows.
What is negotiable instruments act 1881 and important sections. Full text containing the act, negotiable instruments act, 1881, with all the sections, schedules, short title, enactment date, and footnotes. There is no ambiguity in clause a of section 142 of the act, which prohibits or excludes complaints being initiated by power of attorney, agents of the payee or the holder in due course. The appellant resisted the complaint by contending that the respondent is neither the payee nor the holder of the cheques in due course and therefore no cognizance can be taken against him. Negotiable instruments act 1881 section 8 court gujarat. Negotiable instruments by statue the act mentions only three types of negotiable instruments section. Rules regulations notifications orders circulars statutory. However, the special provision of section 8 under the negotiable instruments act, 1881 hereinafter referred to as the nia was inserted with. Essentially the liability of the parties to a negotiable instrument has it statutory provisions under sections 30, 32 and 35 of the negotiable instruments act 1881. Updating and uploading of all central acts available on this web page is the proprietary of the legislative department in the ministry of law and justice. Legislation can take away basis of judgment, madras hc. It is, therefore, prayed that the accused person be proceeded against and punished in accordance with law as envisaged under section 142 of the negotiable instrument act in accordance.
Notice format under section 8 negotiable instruments act. Negotiable instruments amendment act, 2015 to amend ni act. Section 5 of the negotiable instruments act defines a bill of exchange as follows. But in section 1, it is also described that local extent, saving of usage relating to hundis, etc. In the negotiable instruments act, 1881 hereinafter referred to as the principal act, after section 143, the following section shall be inserted, namely. That your above noted act shows that you have issued the cheque in favour of my client with fraudulent intention and to deceive my client, intentionally and willfully and knowingly. Act, after section 143, the following section shall be inserted. Banking public financial institutions and negotiable instruments clause amendment act. Be it enacted by parliament in the sixtyninth year of the republic of india as follows. Virtual legal assistant, query alert service and an adfree experience. The president of india has promulgated the negotiable instruments amendment ordinance, 2015 6 of 2015 on 15 th june 2015. Section 142 in the negotiable instruments act, 1881.
According to section 142, only metropolitan magistrate or magistrate of the first class may take cognisance of the offence. Section 140 in the negotiable instruments act, 1881 1140. Prior to insertion of section 8 of the negotiable instruments act, a dishonored cheque left the person aggrieved with the only remedy of filing a claim. The practical lawyer recent amendment to the negotiable. This was followed by a complaint, filed by the respondent herein, under section 8 of the negotiable instruments act, 1881. Notice format under section 8 negotiable instruments act pdf download we provide all services of drafting and vetting of legal formats, legal documents.
In the negotiable instruments act, 1881 hereinafter referred to as the principal. Section 8 of negotiable instruments act legal helpline. Presumptions as to negotiable instruments until the contrary is proved, the following. As sections 8 to 142 of the said act were found deficient in dealing with dishonour of cheques, the negotiable instruments amendment and miscellaneous provisions act, 2002, inter alia, amended sections 8, 141 and 142 and inserted new sections 143 to 147 in the said act aimed at speedy disposal of cases relating to dishonour of cheque through their summary trial as well as. According to section 1 of the negotiable instruments act, 1881ni act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. Defence which may not be allowed in any prosecution under section 8.
1408 282 978 358 553 986 1428 26 1095 789 1192 455 1093 554 221 373 863 52 1344 1478 1035 1225 870 1369 227 290 992 810 1162 1356 1036 293 1380 1464 226 32 376 115 772 248 544