What is the meaning of 138 NI Act?
What is the meaning of 138 NI Act?
Section 138 of the NI Act is a penal provision that deals with the punishment of dishonour of cheque. Dishonour of cheque is not an offence in itself but to become an offence, the following ingredients should be there: There should be a drawer that draws the cheque.
What does Section 6 deals within the negotiable instrument Act?
Cheque. A ”cheque” is a bill of exchange drawn on a specified banker and not expressedto be payable otherwise than on demand and it includes the electronic image of a truncated cheque and a cheque in the electronic form.
What is the process of 138?
Legal action According to Section 138 of the Act, the dishonour of cheque is a criminal offence and is punishable by imprisonment up to two years or with monetary penalty or with both. If payee decides to proceed legally, then the drawer should be given a chance of repaying the cheque amount immediately.
How do you defend a 138 case?
Friendly loan concerning unaccounted money Section 138 of the Negotiable Instruments Act, does not include within its purview the liability to pay an unaccounted cash amount. So, if there was a loan given which was in the form of an unaccounted cash, then it is not legally enforceable to repay it.
What Crpc 138?
138. Procedure where he appears to show cause. (1) If the person against whom an order under section 133 is made appears and shows cause against the order, the Magistrate shall take evidence in the matter as in a summons- case.
Is a dead cheque?
When the date written on the cheque is three months prior to submission to the bank for payment, it is called Stale cheque. Stale cheque and expired dated cheque both are synonymous.
Is cheque is a negotiable instrument?
A cheque is a Negotiable Instrument, which can be further negotiated by means of endorsement and is payable on demand. A cheque payable to bearer is negotiable by the delivery thereof, and when it is payable to order is negotiable by the holder by endorsement and delivery thereof.
What is the time limit for cheque bounce case?
As per Negotiable Instruments Act, legal notice must be sent within 30 days from the date of cheque bounce. Thereafter within 15+30=45 days from the date of sending the legal notice, case must be filed.
How we can escape from 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.