Section 148 of the negotiable instruments act, 1881 has. In furtherance to this, an amendment to the act has been passed by introducing the negotiable instruments amendment bill, 2017 which. Tracking the dilemma over jurisdiction in section 8 matters. If you want to read the detailed article on negotiable instruments act, simply click here.
But doing so by scrolling in this long pdf is hard. 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. Section 8 of negotiable instruments act legal helpline. This article is concerned with the offence under section 8, n. Negotiable instruments act, 1881 bare acts law library. Effectiveness of the s8 of the negotiable instruments act. Every negotiable instrument shall be governed by the provisions of this act, and no usage or custom at variance with any. The section further provides that in case an accused does not pay the amount despite an order to do so, the same is recoverable like a fine under section 421 of the crpc. I have created it to help law students go to a section quickly. Although 4 years old, the rules under the act are timeless.
The negotiable instruments amendment and miscellaneous provisions act, 2002 further extended the term of imprisonment to up to 2 two years. Negotiable instruments act, 1881 this pdf is very big. All question related to section 8 negotiable instrument act. The negotiable instruments act, 1881 act was implemented with the intention of amending the law related to promissory notes, bills of exchange and cheques.
These new sets of provisions have been effective since 1st september 2018. Aug 04, 2018 the negotiable instruments amendment act, 2018 was notified on 02082018. A cheque is a bill of exchange drawn on a specified banker and not expressed to be payable. The act has been amended time and again to ensure and enhance trust in negotiable instruments.
Sep 16, 2017 the apex court in a recent judgement held that any failure to include the company as an accused in the complaint, filed for dishonor of cheque section 8 of the negotiable instruments act, 1881 of dishonour of a cheque issued by a company, would be fatal to the prosecution of such company even if the complaint filed against the signatory of. 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. 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. Whether the payee or holder of a cheque can initiate prosecution for an offence under section 8 of the negotiable instruments act, 1881 for its dishonour for second. Negotiable instruments act, 1881 is an act in india dating from the british colonial rule, that is. The act has been amended time and again to ensure and enhance the trust in negotiable instruments. We prefer to carry a small piece of paper known as cheque rather than. An act relating to negotiable instruments within the district of. This act may be called the negotiable instruments act, 1881. Every negotiable instrument is payable at the time fixed therein without grace. Section 8 is selfcontained in so far as it creates an offence and prescribes the punishment.
Defense which may not be allowed in any prosecution under section 8. Jun 30, 2015 section 8 of the negotiable instruments act 1881 states the following. A, in business law from nujs, kolkata discusses legal steps to take when a negotiable instrument is dishonoured. Oct 11, 2011 section 8 of the negotiable instruments act, 1881 arun mahadevan slideshare uses cookies to improve functionality and performance, and to provide you with relevant advertising. In this article, sanjana tripathy does a critical analysis of section 8 of the negotiable instruments act.
Section 8c in the negotiable instruments act, 1881. Section 143 now introduces a new proviso 143a, giving power to a court to try an offence under s. 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. 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. In the negotiable instruments act, 1881 hereinafter referred to as the principal act, after section 143, the following section shall be inserted, namely. Oct 03, 2015 bhaskaran judgment, gave the law on criminal court jurisdiction in matters of section 8 of the ni act which settled the trend unless and until, it was recently overruled by the dashrath rup singh judgment present case.
Needless to say, this amount is adjustable from the final fine under section 8 of the act and compensation under section 357 of crpc amount. Dishonour of a negotiable instrument legal steps to take. The objective of sec 8 of ni act is to promote the efficiency of banking operations and to ensure credibility in transacting business through cheques is mentioned in the case law modi cements ltd. Negotiable instruments act 1881 section 8 citation 8788. Section 8 negotiable instruments act, 1881 an in depth analysis. In this amendment a new section namely section 8a was inserted within the. While examining this issue of consent for compounding, it gave following reasons as to why consent of complainant is not to be encouraged where compensation. Bouncing of a cheque invites criminal prosecution under section 8 of ni act. There is no provision in negotiable instruments act prohibiting the legal heirs to file the complaint under section 8 of the act. This paper attempts to delineate various aspects of section 8 of the negotiable instruments act. 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. An offence committed under section 8 is a noncognizable offence a case in which a police officer cannot arrest the accused without an arrest. Critical analysis of section8 of negotiable instruments act. It is manifest that to constitute an offence under section 8 of the act, the.
Expected mcq on negotiable instruments act with answers. Section 8 of the negotiable instruments act, 1881 blog. Draft format for filing criminal complaint under section 8 of negotiable instruments act is given below to get idea to prepare the complaint. Negotiable instruments act most litigated issue on section 8. Defence which may not be allowed in any prosecution under section 8.
Sep 28, 2017 the apex court in a recent judgement held that any failure to include the company as an accused in the complaint, filed under section 8 of the negotiable instruments act, 1881 of dishonour of a cheque issued by a company, would be fatal to the prosecution of such company even if the complaint filed against the signatory of the cheque has been. 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. In 1988, the negotiable instruments act, 1881, was amended and section 8 was inserted making the bouncing of cheques a punishable offence amounting to a punishment of imprisonment of a term extendable to 2 years, or with fine extendable to double the amount of the cheque or both. Negotiable instruments amendment bill, 2017 gktoday. The maximum punishment for such an offence is imprisonment upto 2 years or fine upto twice the amount of cheque or both. Jun 18, 2016 the act went through a final amendment in the year 2000. Full text containing the act, negotiable instruments act, 1881, with all the sections, schedules, short title, enactment date, and footnotes. I act is applicable for the cases of dishonor of cheque. May 29, 2019 section 148 ni act, applies even in a case where the criminal complaints for the offence under section 8 of the n. 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. Dishonour of chequegujarat hc explains the new law on. Ni act the negotiable instruments act, 1881 as amended up to date.
Inland instruments, foreign instruments, bank and finance companies drafts. The clarification of jurisdictional issues may be desirable from the equity point of view as this would be in the interests of the. May 14, 2019 all the rights possessed by the original holder of the cheque devolve upon the legal heirs by operation of law. Know more about the law of negotiable instruments act. 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. Negotiable instruments amendment act, 2015 to amend ni. So, to read any section just use the initial blue index pages of this pdf. That the validity and negotiable character of an instrument. The negotiable instruments amendment act, 2018 highlights. Expected questions on negotiable instrument act expected. Objective of section 8 of negotiable instrument act,1881. In 2003, another amendment was made to the negotiable instruments act,1881. Negotiable instruments have been used in commercial world for a long period of time as one of the convenient modes of transferring money. Notice format under section 8 legal helpline india.
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. After this amendment, a new chapter consisting of section 8 to 142 has been inserted in the. The concept of taking cognizance of the offence but not the offender in the context of the code of criminal procedure, 1973 crpc, is not applicable to proceedings under section 8 of the negotiable instruments act 1881 ni act. Definition the negotiable instruments act was in force in india in the year 1881. Jan 16, 2015 as per the provisions of section 142 of the negotiable instruments act, a complaint can be made about the offence of cheque bounce under section 8 of the act, within one month of the expiry of 15 days period from receipt of above notice by the drawer of the cheque if no payment is made within those 15 days. The previous chapter in the negotiable instrument act 1881 hereinafter n. 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. Banking public financial institutions and negotiable instruments clause amendment act. Mcq on negotiable instruments act with answers in pdf. Iv section 8 apply unless the drawer of such cheque fails to make the payment of the said amount of money to. An act to define and amend the law relating to promissory notes, bills of exchange and cheques. Ram manohar lohiya national law university, lucknow, up.
Section 8 is the principal section dealing with dishonor of. New guidelines of sc for dealing with cheque bouncing cases. Insertion of new section sia after section 81 of the principal act, the following section shall be inserted, namely. Whether the payee or holder of a cheque can initiate prosecution for an offence under section 8 of the negotiable instruments act. The negotiable instruments amendment bill, 2015 provides for the following, namely. Apr 24, 20 this article on dishonour of cheque section 8 of the negotiable instruments act gives a comprehensive overview about all aspects of cheque bouncing and cheque dishonour as per laws in india. And this act was enacted and section 8 of ni act thereof. What is negotiable instruments act 1881 and important sections. The case under section 8 of the negotiable instruments should be filed within 15 days of receipt of the date of issuance of the notice under section 8. Section 8c in the negotiable instruments act, 1881 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. To address the difficulties faced by the payee or the lender of the money in filing the case under section 8 of the said act, because of which, large number of cases are stuck, the jurisdiction for offence under section 8 has been clearly defined.
Negotiable instruments recognized by negotiable instruments act 1881 are. Verdict is likely to be struck down, as sec 8 of ni act does not deal on the type of. Sections 8 and 141 of the negotiable instruments act. Prior to this legislation, the provision of the english negotiable instrument act was in force in india. Critical analysis of section 8 of negotiable instruments. Pdf this research paper deals with the following constellation of issues. This article on dishonour of cheque section 8 of the negotiable instruments act gives a comprehensive overview about all aspects of cheque bouncing and cheque dishonour as per laws in india what is a cheque. Section 8 of the negotiable instruments act, 1881 deals with the dishonor of cheques. 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. Every sole maker, drawer, payee or indorsee, or all of several joint makers, drawers, payees or indorsees, of a negotiable instrument may, if the negotiability of such instrument has not been restricted or excluded as mentioned in section 50, indorse and negotiate the same.
Impact of closing of account on cheque bouncing case. After issuing a cheque, if the account is closed by the drawer and due to this reason, the cheque is dishonoured, an offence of cheque bouncing under section 8 of negotiable instruments act, 1881, may still be attracted, provided other ingredients of this offence are satisfied. A cheque is a bill of exchange drawn on a specified banker. Sections 8 and 141 of the negotiable instruments act, 1881. Pdf negotiable instrument act and cheque used as collateral. The president of india has promulgated the negotiable instruments amendment ordinance, 2015 no.
Jun 11, 2018 now, what is section 8 of negotiable instrument act 1881. Act and, hence, it would be a redundant exercise to go into other negotiable instruments besides. The above amendment is immediate relief to the complainant i. The president of india has promulgated the negotiable instruments amendment ordinance, 2015 6 of 2015 on 15 th june 2015. Where any cheque dr awn by a person on an account maintained by hi m 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. The negotiable instruments amendment act, 2018 was notified on 02082018. 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. Section 8 of negotiable instruments act legal helpline india. What are the changes brought in by virtue of negotiable instruments amendment act. Aug 11, 2018 in view of said amendment, the complainant can get 20% interim compensation at the time of commencement of trial besides cheque amount on conviction but the amendment is silent in respect of the punishment as provided in section 8 of the act. Noncognizable in a cognizable offence, a police officer has a right to arrest the accused without orders of a court. A promissory note, bill of exchange or cheque payable either to order or to bearer is called negotiable instrument how many total sections are there in the negotiable instruments act. Apr 18, 2019 the supreme court has observed that a demand notice issued under section 8 of the negotiable instruments act, claiming loan amount, does not become invalid, if it is same as the amount covered.
With an aim to further streamline theact, the central government incorporated sections 143a and 148 vide negotiable instruments amendment act, 2018 amended act. Format of criminal complaint us 8 of negotiable instruments act against return of cheque. Candidates can find the negotiable instrument act 1881 multiple choice questions and answers pdf, which was highly expected questions in banking awareness section. According to section of the negotiable instruments act, a negotiable. But in section 1, it is also described that local extent, saving of usage relating to hundis, etc. Section 8 of the negotiable instrument act, 1881 was introduced in chapter xvii of the act which was inserted by section 4 of the banking, public financial institutions and the negotiable instruments laws amendment act, 1988. Notice format under section 8 negotiable instruments act.
This was followed by a complaint, filed by the respondent herein, under section 8 of the negotiable instruments act, 1881. 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. Through this write up, a statutory and judicial light is focused on the different aspects of procedure and provisions set up in cases related to dishonour of cheques as enshrined in chapter xvii decoding form section 8 to section 148 of the negotiable instruments act, 1881. What is section 8 of the negotiable instruments act. The criminal liability of a drawer in case of dishonour of cheque is dealt in section 8 to section 142 of negotiable instrument act 1881. Where any cheque is drawn by a person on an account maintained by him with his banker, for the payment of any outstanding debt or liability, is bounced i. If you continue browsing the site, you agree to the use of cookies on this website.
Pdf critical analysis of the law commissions report on the. A cheque is a written instrument containing an unconditional order addressed to a banker signed by the person who has deposited money to the banker requiring him to pay on demand a certain sum of money to the bearer of the instrument. Section 8 negotiable instruments act, 1881 an in depth. The supreme court has observed that a demand notice issued under section 8 of the negotiable instruments act, claiming loan amount, does not become invalid, if it is same as the amount covered. For filing a complaint, the complainant needs to follow these steps. Section 6 of negotiable instruments act defines cheque as. It extends to the whole of india but nothing herein contained affects the indian paper currency act, 1871, 3 of 1871. 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. Be it enacted by parliament in the sixtyninth year of the republic of india as follows. We provide all services of filing cases under section 8 of the negotiable instruments with our team of experts.
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. The negotiable instruments act, 1881 xxvi of 1881 9th december, 1881. Section of the act states that a negotiable instrument is a promissory note, bill of exchange or a cheque payable, it further describes local extent, savings, commencement etc. Complaint us 8 of ni act download format of complaint. The apex court in a recent judgement held that any failure to include the company as an accused in the complaint, filed under section 8 of the negotiable instruments act, 1881 of dishonour of a cheque issued by a company, would be fatal to the prosecution of such company even if the complaint filed against the signatory of the cheque has been. Notice under section 8 should be sent through registered ad post only. Section 8 in the negotiable instruments act, 1881 indian kanoon. The first section in this aspect to be analyzed, would be s. Negotiable instruments act in india debt consolidation.
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