Negotiable Instruments Act, 1881, Section 138 -- Dishonour of cheque - `Account closed' - Closure of account is not a bar on Magistrate to take cognizance of complaint u/s.138 of the Act...........
Negotiable Instruments Act, 1881, Section 138 -- Proviso - Fails to make the payment' do not mean `Failure without reasonable cause' - Drawer of the cheque is not entitled to lead evidence that he had no reason to believe when he issued the cheque that it may be dishonoured on presentment for the reasons mentioned in S.138...........
Negotiable Instruments Act, 1881, Section 138 -- Liability arises only when cheque is issued to discharge any debt or other liability - Mere issue of cheque for any other purpose like gift or present without sufficient funds in Bank does not constitute offence...........
Negotiable Instruments Act, 1881, Section 139 -- Rebuttable presumption - Not applicable to a holder of cheque without consideration...........
Negotiable Instruments Act, 1881, Section 138, 139 -- Dishonour of cheque - Initial burden lies on complaint to show that cheque was issued to discharge a legally enforceable debt or other liability - Then only burden shifts to the drawer of the cheque to rebut that presumption...........
Negotiable Instruments Act, 1881, Section 141 -- Company - Cheque dishonoured - Persons incharge of and responsible to company for conduct of its business can alone be prosecuted irrespective of whether Company is prosecuted or not...........
Negotiable Instruments Act, 1881, Section 138, 141 -- Company - Dishonour of cheque - Specific averment as to persons responsible for conduct of its business not made - However, certain officials of the company arrayed as accused - Absence of such averments in the complaint not material - Prosecution against Company and/or other individual officials named therein cannot be..........
Negotiable Instruments Act, 1881, Section 138, 142 -- Dishonour of cheque -Complaint filed within limitation - Complaint returned for some omission and Court did not specify time for compliance of that omission - Complaint if represented after limitation cannot be held to be barred...........
Negotiable Instruments Act, 1881, Section 138, 142 -- Dishonour of cheque - Notice sent on 23.4.1992 received on 25.4.1992 - Complaint tiled on 3.6.1992 - Held, complaint is tiled within time as cause of action to tile the complaint arose on 9.5.1992 and the complaint has to be tiled within one month from 10.5.1992...........
Negotiable Instruments Act, 1881, Section 138 -- `Stop payment' - Provision is not applicable as cheque is not returned on account of insufficient funds...........
