Who can file US 138 of NI Act?

Asked by: Ivah Kerluke I  |  Last update: February 19, 2022
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Departing from the general rule under criminal law, motion can be set by any person either by written complaint or any oral information, whereas the provision of section 142 of the Act mandates that the complaint filed under section 138 of the Act should be in writing and it should be filed and signed by the payee in ...

Who can file a complaint under section 138 of NI Act?

A complaint under section 138 of the Act can be filed only by the payee of the dishonoured cheque or by the holder in due course as mandated by Section 142 of the Act.

Who can send notice under 138?

This Notice is a Notice which shall be given by the unpaid Creditor (Payee) to the defaulting Debtor (Drawer) through an Advocate in case of dishonour of Cheque under section 138 of Negotiable Instrument Act.

Who can file a cheque bounce case?

Under Section 138 of the Act, the offence of cheque bounce is a criminal offence for which the payee can initiate a criminal suit. The payee must file the complaint against cheque bounce before the Magistrate within 30 days of the expiry of 15 days of the issuance of the cheque bounce notice.

What are the conditions that must be fulfilled in order to initiate proceedings under s 138 of the Negotiable Instruments Act, 1881?

To constitute an offence under Section 138 of the Act, the following ingredients are required to be fulfilled:
  • A person must have drawn a cheque on a bank account maintained by him.
  • The cheque should have been issued for the discharge, in whole or in part, of any debt or other liability;

Section 138 - 142 of Negotiable Instrument Act|| go legal|| tutorial

27 related questions found

How do I file a complaint with Section 138 of the NI?

The following basic documents are necessary to file Complaint under section 138 of Negotiable Instruments Act.
  1. Memo of Parties.
  2. Complaint U/S 138 Negotiable Instruments Act, 1881.
  3. Pre-Summoning Evidence/ By Way Of Affidavit (in some courts)
  4. List of Witnesses.
  5. List of Documents with Documents.

How do I file a 138 case?

If the cheque issuer fails to make a fresh payment within 30 days of receiving the notice, the payee has the right to file a criminal complaint under Section 138 of the Negotiable Instruments Act. However, the complaint should be registered in a magistrate's court within a month of the expiry of the notice period.

Who is payee in cheque?

Payee: The person named in the cheque who is to receive the payment. Drawee: The specific bank on which the cheque has been drawn. Drawer: The person who writes the cheque, who can be the account holder or the customer. The payee and drawer can be the same person.

What is the new rule of cheque bounce?

The new set of rules, which took effect on August 1, 2021, states that customers who plan to issue cheques need to ensure that there are sufficient funds in the bank accounts to do so. If this minimum balance is not maintained, the cheque will bounce.

What IPC 138?

Whoever abets what he knows to be an act of insubordination by an officer, soldier, 1[sailor or airman], in the Army, 2[Navy or Air Force] of the 3[Government of India], shall, if such act of insubordination be committed in consequence of that abetment, be punished with imprisonment of either description for a term ...

What is the notice period in 138 NI Act?

A 15-day notice period shall be stated in any notice sent to the Drawer. No crime is believed to be committed by Drawer if the Drawer pays the full amount within the 15-day notice span. If not, the Payee can choose to claim against such defaulting Drawee in the competent court.

Is Section 138 a bailable offence?

No. A Magistrate can take cognizance of an offence of dishounour of Cheques under Section 138 of the NI Act only on a Complaint from the holder in due course (in this case the person in whose favour the cheque was drawn). ... Further, the offence is non-cognizable so the police cannot arrest without a warrant.

Who is cheque bearer?

A bearer cheque is the one in which the payment is made to the person bearing or carrying the cheque. These cheques are transferable by delivery, that is, if you are carrying the cheque to the bank, you can be issued the payment to.

What is legally enforceable debt under 138 NI Act?

It all depends on whether a legally enforceable debt or liability has arisen." The Appellants urged that the cheques in the present case have been issued as security. The legal requirement with respect to section 138 is that a cheque must be drawn for the discharge, in whole or in part, of any debt or other liability.

How can win case by accused 138 NI Act?

The cheque issued in respect of future liabilities not in existence as on the date of cheque would not attract prosecution Under Section 138 of N.I. Act. So even if security cheque is bounced the prosecution can be initiated and only defence is that there was no legally enforceable debt.

Can the holder of negotiable instruments?

A holder is one who has possession of and is entitled to enforce the instrument. So, a person who is named as payee and possesses an instrument is a holder. If the commercial paper is not payable to a particular person (i.e., it is payable to anyone in possession of the paper), anyone who has possession is a holder.

What is the maximum limit of cheque?

As per the RBI guidelines issued last year, banks can enable this facility for all account holders for cheque amounts of Rs 50,000 and above at the discretion of the account holder. However, banks may consider making it mandatory for cheques of above Rs 5 lakh.

Can I deposit 5 lakhs cheque in my account?

Since there is a system of Annual Information Return being filed by banks, your cash deposit exceeding Rs. 10 Lakhs in a Savings account / exceeding Rs. ... 2 lakhs is not allowed as per Section 269ST of the Income tax, which will land you in a penaly of Rs.

Can cheque be cleared on Sunday?

The Reserve Bank of India (RBI) came out with a new set of guidelines regarding changes to the banking rules from this month. With the new rule change, cheques can be cleared on a Sunday or a holiday too. The customers must keep in mind that they need to keep a minimum balance in their bank account at all times.

Who is payee name?

A payee is a person or organization that receives payment, such as for goods or services. Payment can be in any form, including cash, a check, a money order, or an electronic transfer of funds. You typically encounter payees when banking. On a check, the payee is the person or organization to whom the check is written.

Who can be a payee?

It may be a family member, a friend, a legal guardian or a lawyer. Sometimes, however, social service agencies, nursing homes or other organizations offer to serve as payees.

Is beneficiary and payee same?

A beneficiary or payee is the person to which you would like to transfer funds. Whether you are sending money to yourself or a third party abroad, it's important to ensure you have the correct payee details.

Can a complaint US 138 NI Act be amended?

of the submission made by the learned Amici that Section 219 be amended suitably. We find force in the submission of the learned Amici Curiae that one trial for more than three offences of the same kind within the space of 12 months in respect of complaints under Section 138 can only be by an amendment.

What are the reasons of Dishonour of Cheque?

What are the possible reasons due to which a bank can dishonour a cheque?
  • Insufficient funds in the payer's bank account.
  • Signature missing or mismatch.
  • Account number mismatch.
  • Issue with the date of the cheque.
  • Mismatch in the amount in words and numbers.
  • Disfigured or damaged cheque.
  • Crossing limit of the overdraft.

How do you escape a cheque bounce case?

File a counter case: If the person files a false cheque bounce case against you in the court, you can file a reply to the case through a lawyer for cheque bounce case near you. You can also file a counter file of cheque against the person for filing a false cheque bounce case against you.