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. The negotiable instrument act, 1881 legislative department. 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 60 instrument negotiable till payment or satisfaction. 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. 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. For the purposes of this section, debt or other liability me ans a legally enforceable debt or other liability. Act, after section 143, the following section shall be inserted. Instrument negotiable till payment or satisfaction. Act, the complainant can adduce his evidence by affidavit.
But in section 1, it is also described that local extent, saving of usage relating to hundis, etc. 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. The first section in this aspect to be analyzed, would be s. Section 142 in the negotiable instruments act, 1881.
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. An application under section 145 2 of the act was filed on behalf of the accused. Section 59 instrument acquired after dishonour or when overdue. 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. An act further to amend the negotiable instruments act, 1881. 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. Compromise in cases of dishonour of cheques accused. Negotiable instruments act, 1881 bare acts law library. The negotiable instruments amendment act, 2018 amendment received the assent of the president on 2nd august 2018. 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. In the negotiable instruments act, 1881 hereinafter referred to as the principal act, after section 143, the following section shall be inserted, namely. 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. Negotiable instruments recognised by usage or custom are. Prosecution in such cases can, therefore, be launched against the drawer of th cheque only before the court within whose jurisdiction the dishonour takes. 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 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. 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.
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. 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 negotiable instruments act, 1881 an in depth. 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. Where amount is stated differently in figures and words. Section 8 of negotiable instruments act legal helpline india. 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. Jun 11, 2018 now, what is section 8 of negotiable instrument act 1881. 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. Cheque dishonour proceedings upon reaching the stage of. The practical lawyer recent amendment to the negotiable. After section 81 of the principal act, the following section shall be inserted, namely. 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. Be it enacted by parliament in the sixtysixth year of the republic of india as follows.
Civil recovery proceedings under order xxxvii of the code of civil procedure, 1908 were also initiated. Complaint us 8 of ni act download format of complaint. Critical analysis of section8 of negotiable instruments act. 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. 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 offence versus cognizance of accused.
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. Recent amendment to the negotiable instruments act, 1881. 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. All question related to section 8 negotiable instrument act. Section 1451 of the ni act gives complete freedom to the complainant either to give his evidence by way of affidavit or. Section 143a of ni act not retrospective, supreme court read. 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. Negotiable instruments act 1881 summary is available for download at the excellent download file is in the format of pdf. All the four steps thus completed the answer to the question is. Section 145 in the negotiable instruments act, 1881 indian kanoon. Legal representative cannot by delivery only negotiate instrument endorsed by deceased. Provisions act, 2002 55 of 20021, which is intended to plug the loopholes. Negotiable instruments amendment act, 2015 to amend ni act. The excellent download file is in the format of pdf.
The law relating to negotiable instruments is contained in the negotiable instruments act, 1881 which applies and extends to the whole of india. Instrument obtained by unlawful means or for unlawful consideration. 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. Instrument acquired after dishonour or when overdue. Local extent, saving of usage relating to hundis, etc. Negotiable instruments act in favour of holder of the cheque. The clarification of jurisdictional issues may be desirable from the equity point of view as this would be in the interests of the. 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. Section 58 instrument obtained by unlawful means or for unlawful consideration. Section 1452 in the negotiable instruments act, 1881. 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 of negotiable instruments act legal helpline. Negotiable instruments act 1881 section 145 evidence on.
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. According to section 145 of the negotiable instruments act, 1881, the evidence of the complainant in a proceeding under section 8 of the negotiable instruments act, 1881 may be given by him by way of an affidavit and such an affidavit is to be read in evidence in any inquiry, trial or other proceedings in the court. 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. 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. Defence which may not be allowed in any prosecution under section 8. 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. Special form of procedure prescribed by any other law. The court has to accept the same even if it is given by way of an affidavit. Development in banking sector and with the opening of new branches, cheque become one of the favourite negotiable instruments. For the purposes of this section, debt or other liability means a legally enforceable debt or other liability. 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.
I act is applicable for the cases of dishonor of cheque. The negotiable instruments act, 1881 xxvi of 1881 9th december, 1881. What is negotiable instruments act 1881 and important sections. Negotiable instruments act 1881 1881 section 147 judgments. Difference between promissory note and billofexchange. 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. Instrument acquired after dishonor or when overdue. May 06, 2015 a bill further to amend the negotiable instruments act, 1881. Section 140 in the negotiable instruments act, 1881. 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.
Negotiable instruments act 1881 section 145 judgments. 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. 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. 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. Section 118 presumptions as to negotiable instruments. A bill further to amend the negotiable instruments act, 1881. Negotiable instruments act 1881 section 8 citation. All question related to section 8 negotiable instrument. In the negotiable instruments act, 1881 hereinafter referred to as the principal. Inland instrument 12 foreign instrument negotiable instrument 14.
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. This act may be called the negotiable instruments act, 1881. Characteristic features of negotiable instruments and presumptions under section 118 and section 119 of the negotiable instruments act, 1881. 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.
Students taking ca ipcc exams or students preparing for ethics will find the file very useful. Be it enacted by parliament in the sixtyninth year of the republic of india as follows. The petitioners submit that, in spite of the fact, that chapter xiv has been introduced in the negotiable instruments act by section 4 of the banking, public financial institutions and negotiable instrun\ents laws amendment act, 1988, to enhance the acceptability of. 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. 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. A cheque is a bill of exchange drawn on a specified banker and not. An act to define and amend the law relating to promissory notes, bills of exchange and cheques. It is an instrument in writing not being a banknote or a currency note containing an unconditional undertaking. Negotiable instruments amendment act, 2015 to amend ni. Promissory notes, bills of exchange and cheques are negotiable instruments under negotiable instruments act 1881. Negotiable instruments act 1881 linkedin slideshare. Negotiable instrument made, etc, without consideration. An instrument to be negotiable must conform to the following requirements. Section 145 in the negotiable instruments act, 1881.
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. Section 62 presentment of promissory note for sight. Section 5 of the negotiable instruments act defines a bill of exchange as follows. 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. Virtual legal assistant, query alert service and an adfree experience. Section 145 negotiable instruments act chambers of nitin.
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