Supreme Court Quarterly Digest 2024 - Negotiable Instruments Act, 1881

Director of the company not responsible for its day-to-day affairs cannot be held liable for dishonor of cheque. (Para 10) Susela Padmavathy Amma v. Bharti Airtel Ltd., 2024 LiveLaw (SC) 237 Section 118 r/w. 139 - Accused has signed the cheque. The only dispute is with regard to the age of the ink used in making the signature on the cheque and the age of the signature and contents of the cheque. It is immaterial that the cheque may have been filled in by any person other than the drawer, if the cheque is duly signed by the drawer. If the cheque is otherwise valid, the penal provisions of Section 138 would be attracted. If a signed blank cheque is voluntarily presented to a payee, towards some payment, the payee may fill up the amount and other particulars. This in itself would not invalidate the cheque. The onus would still be on the accused to prove that the cheque was not in discharge of a debt or liability by adducing evidence. (Para 5 & 6) K. Ramesh v. K. Kothandaraman, 2024 LiveLaw (SC) 145 Section 118 r/w. 139 - Even if a blank cheque leaf is voluntarily signed and handed over by the accused towards some payment would attract the presumption under Section 139 of the Act and in the absence of any cogent evidence to show that the cheque was not issued in discharge of the debt, the presumption would hold good. (Para 5) K. Ramesh v. K. Kothandaraman, 2024 LiveLaw (SC) 145 Section 118(e) and 138 - If the accused is disputing the signature on the cheque, then the certified copies of the signatures from the bank could be summoned from the bank to compare the same with the signature appearing on the cheque. The indorsements on a cheque carry a presumption of genuineness as per Section 118(e) of the Act. Hence, it is incumbent upon the accused to lead evidence to rebut the presumption of genuineness of signatures. (Para 16) Ajitsinh Chehuji Rathod v. State of Gujarat, 2024 LiveLaw (SC) 64 : AIR 2024 SC 787 Section 118(e) and 138 - The accused had not taken any efforts to disprove his signature at the trial stage. No question was put to the witness from the bank regarding the genuineness of the signature. Also, the cheque was returned not on the grounds of any discrepancy in the signatures. If at all, the accused was desirous of proving that the signatures as appearing on the cheque issued from his account were not genuine, then he could have procured a certified copy of his specimen signatures from the Bank and a request could have been made to summon the concerned Bank official in defence for giving evidence regarding the genuineness or otherwise of the signature on the cheque. (Para 16) Ajitsinh Chehuji Rathod v. State of Gujarat, 2024 LiveLaw (SC) 64 : AIR 2024 SC 787 Section 138 - Accused persons filed an undertaking based on a settlement. Since the amount agreed was not paid, the interim protection, granted via suspension of sentence and bail, was withdrawn. Appeal dismissed with cost of Rs 5 lakhs and directed to surrender within a period of four weeks. Satish P. Bhatt v. State of Maharashtra, 2024 LiveLaw (SC) 16 Section 138 - Once the settlement has been arrived at and the complainant has signed the deed accepting a particular amount in full and final settlement of the default amount and the fine amount awarded by the Trial Court, the proceedings under Section 138 of the NI Act need to be quashed. (Para 4) Ghanshyam Gautam v. Usha Rani, 2024 LiveLaw (SC) 23 Section 138 - Question regarding the time-barred nature of an underlying debt or liability in proceedings under Section 138 of the NI Act is a mixed question of law and fact which ought not to be decided by the High Court exercising jurisdiction under Section 482 of the CrPC. (Para 7) Atamjit Singh v. State (NCT of Delhi), 2024 LiveLaw (SC) 76 Section 143A - Mere filing of the cheque dishonor complaint under the Negotiable Instruments Act would not grant a right to a complainant to seek interim compensation under Section 143A (1) of the N.I. Act, as the power of the court to grant interim compensation, isn't mandatory but discretionary and needs to be decided after prima facie evaluating the merits of the case. (Para 14) Rakesh Ranjan Shrivastava v. State of Jharkhand, 2024 LiveLaw (SC) 235 Sections 138 and 141 - The Director of the company wouldn't be held liable for the dishonor of a cheque issued by the company pursuant to the retirement of the Director unless some credible evidence is brought on record proving the guilt of the director. The director could be held liable for the dishonor of the cheque after his retirement only when it is proved that any act of a company is proved to have been done with the connivance or consent or may be attributable to a director. (Para 10) Rajesh Viren Shah v. Redington (India) Ltd; 2024 LiveLaw (SC) 119 : AIR 2024 SC 1047

Supreme Court Quarterly Digest 2024 - Negotiable Instruments Act, 1881

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Supreme Court Quarterly Digest 2024 - Negotiable Instruments Act, 1881

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