Dishonour of Cheque: DR - Saurabh Chandra Assistant Professor SLS Noida
Dishonour of Cheque: DR - Saurabh Chandra Assistant Professor SLS Noida
Dishonour of Cheque: DR - Saurabh Chandra Assistant Professor SLS Noida
K. Bhaskaran vs. Shankaran AIR 1999,
SC 3762
Had given jurisdiction to initiate the prosecution at a
any of the following places:
1. Where cheque is drawn.
2. Where payment had to be made.
3. Where cheque is presented for payment
4. Where cheque is dishonoured.
5. Where notice is served upto drawer
Held
1) An offence under Section 138 of the Negotiable
Instruments Act, 1881 is committed no sooner a
cheque
drawn by the accused on an account being maintai
ned by him in a bank for discharge of debt
/liability is returned unpaid for insufficiency of
funds or .for the reason that the amount exceeds
the arrangement made with the bank.
NOTING
When a Negotiable instrument is dishonored the
holder mat sue parties.
The holder need evidence of the fact that a
negotiable instrument has been dishonoured.
Such mode is by noting the instrument.
Noting is minute recorded by a notary public on the
dishonoured instrument or on a paper attached to
such instrument.
Payee or holder in due course is a competent person
to file complaint.
A complaint which is made in the name and behalf of
the company can be made by any officer of that
Company.
Complaint can be filed by Power of Attorney Holder.
Compensation to holder:
The holder is entitled to receive –
i)the amount due on the instrument,
ii) expenses incurred in presenting, noting and
protesting the instrument
Re-exchange:
Where the person charged resides in a country
different from that in which the instrument was
payable, the holder is entitled to receive the
compensation at current rate of exchange between
two countries on the date of dishonour.
D) Re-draft:
The party entitled to compensation may draw a bill
for the amount due along with expenses incurred
thereon.
Such a bill is called ‘redraft.