Interplay of section 204, section 239 and section 251 of the code of criminal procedure, 1973. Instrument acquired after dishonor or when overdue. Recent amendment to the negotiable instruments act, 1881. Section 5 of the negotiable instruments act defines a bill of exchange as follows. Section 1452 in the negotiable instruments act, 1881. Virtual legal assistant, query alert service and an adfree experience. Negotiable instruments act, section 8 negotiable instruments act, section 145 dishonour of cheque complaint under section 8 of negotiable instruments act complainant giving evidence by way of affidavit once evidence is given by way of affidavit, at the stage of presummoning, the same evidence is to be read by the court at post. 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. Instrument acquired after dishonour or when overdue. The negotiable instruments act, 1881 xxvi of 1881 9th december, 1881. This amendment act inserts five new sections from 143 to 147 touching various limbs of the parent act and the amendment act has been recently brought into force on feb. Section 8 of negotiable instruments act, reflects the anxiety of the legislature to usher in a new healthy commercial morality through the instrumentality of the penal law. Section 8 negotiable instruments act, 1881 an in depth. Section 8 of negotiable instruments act legal helpline india.
Students taking ca ipcc exams or students preparing for ethics will find the file very useful. Special form of procedure prescribed by any other law. The negotiable instrument act, 1881 legislative department. Section 145 in the negotiable instruments act, 1881. Section 62 presentment of promissory note for sight. The court has to accept the same even if it is given by way of an affidavit. The provisions of the negotiable instruments amendment act, 2015 shall be deemed to have come into force on the 15th day of june, 2015.
Central government act section 145 2 in the negotiable instruments act, 1881 2 the court may, if it thinks fit, and shall, on the application of the prosecution or the accused, summon and examine any person giving evidence on affidavit as to the facts contained therein. Oct 12, 2012 negotiable instrument according to section i a negotiable instrument means a promissory note, bill of exchange or cheque payable either on order or to bearer. An application under section 145 2 of the act was filed on behalf of the accused. The negotiable instruments amendment and miscellaneous. Negotiable instruments act 1881 summary is available for download at the excellent download file is in the format of pdf.
Negotiable instruments act 1881 section 145 judgments. 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. Section of the negotiable instruments act states that a negotiable instrument is a promissory note, bill of exchange or a cheque payable either to order or to bearer. Promissory notes, bills of exchange and cheques are negotiable instruments under negotiable instruments act 1881. For section 6 of the negotiable instruments act, 188126 of 1881 hereinafter referred to as the principal act, the following section shall be substituted, namely. Negotiable instruments act 1881 linkedin slideshare. Development in banking sector and with the opening of new branches, cheque become one of the favourite negotiable instruments. All question related to section 8 negotiable instrument act. Section 60 instrument negotiable till payment or satisfaction. The supreme court had directed that only in those cases where post the summoning and appearance of the alleged accused, the recording of evidence has commenced as envisaged in section 145 2 of the negotiable instruments act, 1881, proceeding will continue at that place. The practical lawyer recent amendment to the negotiable. Legal representative cannot by delivery only negotiate instrument endorsed by deceased. Local extent, saving of usage relating to hundis, etc. Section 143a of ni act not retrospective, supreme court read.
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. The clarification of jurisdictional issues may be desirable from the equity point of view as this would be in the interests of the. Negotiable instruments recognised by usage or custom are. It is an instrument in writing not being a banknote or a currency note containing an unconditional undertaking. 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. 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. Where amount is stated differently in figures and words. May 18, 2019 section 8 of negotiable instruments act, reflects the anxiety of the legislature to usher in a new healthy commercial morality through the instrumentality of the penal law. The word negotiable means transferable by delivery, and the word instrument means a written document by which a right is created in favour of some person. In the negotiable instruments act, 1881 hereinafter referred to as the principal. Defence which may not be allowed in any prosecution under section 8. Section 118 presumptions as to negotiable instruments.
However, it had also held that section 148 of the act, which empowers the appellate court to direct accusedappellant to deposit 20 per cent of the fine or compensation awarded by the trial court will apply to appeals pending on the date when the provision came into force. Banks slip prima facie evidence of certain facts the court shall, in respect of every proceeding under this chapter, on production of banks slip or memo having thereon the official mark denoting that the cheque has been dishonoured, presume the fact of dishonour of such cheque, unless and. Aug 31, 2016 the provisions of the negotiable instruments amendment act, 2015 shall be deemed to have come into force on the 15th day of june, 2015. An instrument to be negotiable must conform to the following requirements. Jun 11, 2018 now, what is section 8 of negotiable instrument act 1881. For the purposes of this section, debt or other liability means a legally enforceable debt or other liability. 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. Negotiable instruments act 1881 1881 section 147 judgments. Section 145 negotiable instruments act chambers of nitin. This act may be called the negotiable instruments act, 1881.
Section 1452 in the negotiable instruments act, 1881 2 the court may, if it thinks fit, and shall, on the application of the prosecution or the accused, summon and examine any person giving evidence on affidavit as to the facts contained therein. It was held that as per section 145 1, the legislature has allowed complainant to give his evidence by way of an affidavit during the course of trial in respect of offence punishable under section 8 of the act and sub section 2 thereof provides that the magistrate may on the application moved by the accused, summon the complainant for his. Instrument negotiable till payment or satisfaction. All question related to section 8 negotiable instrument. Section 145 provides a flexible approach by the legislature to submit the evidence on affidavit and section 146 validates the bankers slip or memo with official mark stating that cheque has. Characteristic features of negotiable instruments and presumptions under section 118 and section 119 of the negotiable instruments act, 1881. The first section in this aspect to be analyzed, would be s. 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.
Notwithstanding anything contained in the code of criminal procedure, 1973 2 of 1974, the evidence of the complainant may be given by him on affidavit and may, subject to all just exceptions be read in evidence in any enquiry, trial or other proceeding under the said code. Cognizance of offence versus cognizance of accused. Complaint us 8 of ni act download format of complaint. Inland instrument 12 foreign instrument negotiable instrument 14. Negotiable instruments act, 1881 bare acts law library. Section 145 in the negotiable instruments act, 1881 indian kanoon. Section 58 instrument obtained by unlawful means or for unlawful consideration.
The proposed amendments to the negotiable instruments act, 1881 the ni act are focused on clarifying the jurisdiction related issues for filing cases for offence committed under section 8 of the ni act. Actwhether the petitionersaccused were not entitled to cross examine the complainant as regard to the entire facts contained in the affidavit of evidence of the complainant or their petitioners. After section 81 of the principal act, the following section shall be inserted, namely. Evidence on affidavit 1 notwithstanding anything contained in the code of criminal procedure, 1973 2 of 1974, the evidence of the complainant may be given by him on affidavit and may, subject to all just exceptions be read in evidence in any enquiry, trial or other proceeding under the said. Act, after section 143, the following section shall be inserted. Negotiable instruments act 1881 section 145 evidence on.
But in section 1, it is also described that local extent, saving of usage relating to hundis, etc. Negotiable instruments act in favour of holder of the cheque. Instrument obtained by unlawful means or for unlawful consideration. May 06, 2015 a bill further to amend the negotiable instruments act, 1881. Summon, prosecute and punish the accused and also direct the accused to pay the amount as double to the amount covered under the said dishonored cheques, under the provisions of section 8 read with section 142 of the negotiable instruments act,1881 as amended by the negotiable instrument laws amended and miscellaneous provisions act, 2002. Cheque dishonour proceedings upon reaching the stage of. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. A negotiable instrument means a promissory note bill of exchange or cheque payable either to order or to bearer only the above instruments are governed by ni act. A cheque is a bill of exchange drawn on a specified banker and not. Negotiable instruments amendment act, 2015 to amend ni. In the negotiable instruments act, 1881 hereinafter referred to as the principal act, after section 143, the following section shall be inserted, namely. It is a classic example where, as part of an attempt to evolve a healthy norm of commercial behavior, the principal of social engineering through the instrumentality of. Section 1451 of the ni act gives complete freedom to the complainant either to give his evidence by way of affidavit or.
Civil recovery proceedings under order xxxvii of the code of civil procedure, 1908 were also initiated. Compromise in cases of dishonour of cheques accused. Section 145 of the negotiable instruments act, 1881 is an exception to the normal rule as envisaged in section 200 of the code of criminal procedure, 1973 that the complainant would be required to give his evidence by appearing in person and by making a statement on oath before the court. Section 145 1 of the negotiable instruments act gives complete freedom to the complainant either to give his evidence by way of affidavit or by way of oral evidence. Act, the complainant can adduce his evidence by affidavit. What is negotiable instruments act 1881 and important sections. All the four steps thus completed the answer to the question is. Instruments act, 1881, for at the most, section of the negotiable instruments act, 1881 states that, a negotiable instrument means a promissory note, bill of exchange or cheque payable either.
The law relating to negotiable instruments is contained in the negotiable instruments act, 1881 which applies and extends to the whole of india. Section 4 of the negotiable instruments act 1881 defines the promissory note, a promissory note is an instrument in writing note being a banknote or a currency note containing an unconditional undertaking, signed by the maker, to pay a certain sum of money to or to the order of a certain person, or to the bearer of the instruments. Provisions act, 2002 55 of 20021, which is intended to plug the loopholes. Legal notice under section 8 format download against return of cheque, to be served to the drawer before filing criminal complaint us 8 of of negotiable. Complaint under section 8 of negotiable instruments act, 1881 act pertaining to dishonour of cheques drawn on bank located in mumbai was filed in delhi. The excellent download file is in the format of pdf.
I act is applicable for the cases of dishonor of cheque. Negotiable instruments act 1881 section 8 citation. Section 140 in the negotiable instruments act, 1881. What would come on record by way of examination upon oath of the complainant or witnesses under section 200 of the code of criminal procedure would as much be evidence as contemplated by section 145 of negotiable instruments act, 1881 examination in chief crossexamination and reexamination of a witness under section 7 of the indian evidence. Be it enacted by parliament in the sixtysixth year of the republic of india as follows. Negotiable instruments amendment act, 2015 to amend ni act. Section 143 provides for summary trial of the cases under section 8 ni act and section 144 deals with the mode of service of summons on the accused. Section 142 in the negotiable instruments act, 1881. An act to define and amend the law relating to promissory notes, bills of exchange and cheques. C the relevant portion of the provisions of section 145 is as follows. Prosecution in such cases can, therefore, be launched against the drawer of th cheque only before the court within whose jurisdiction the dishonour takes. Be it enacted by parliament in the sixtyninth year of the republic of india as follows. An act further to amend the negotiable instruments act, 1881. Section 145 contemplates evidence on affidavit and it appears while bringing this amendment the government had in its mind the ratio decidendi in the case of bips system ltd.
For the purposes of this section, debt or other liability me ans a legally enforceable debt or other liability. The supreme court has directed that only those cases where, post the summoning and appearance of the alleged accused, the recording of evidence has commenced as envisaged in section 145 2 of the negotiable instruments act, 1881, will proceeding continue at that place. Section 59 instrument acquired after dishonour or when overdue. Negotiable instrument made, etc, without consideration. The negotiable instruments amendment act, 2015 is focused on clarifying the jurisdiction related issues for filing cases for offence committed under section 8 of the negotiable instruments act, 1881. Act whether the petitionersaccused were not entitled to cross examine the complainant as regard to the entire facts contained in the affidavit of evidence of the complainant or their petitioners. Critical analysis of section8 of negotiable instruments act. 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. I act the dishonor of cheque is a criminal offence and is punishable by imprisonment up to two years or with a monetary penalty or with both. A bill further to amend the negotiable instruments act, 1881.
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