While section 8 of the act specifies a strong criminal remedy in relation to the dishonour of cheques, the rebuttable presumption under section 9 is a device. Source of income of complainant has to be proved in 8 ni act cases. We have given section, definition related multiple choice questions on negotiable instruments act 1881. We provide all services of filing cases under section 8 of the negotiable instruments with our team of experts.
Source of income of complainant has to be proved in 8 ni. Pdf on jul 19, 20, m s siddiqui and others published negotiable. He further submits that the statutory notice under section 8 of the negotiable instruments act was issued on 21. Patel banking law and negotiable instruments act buy here 3. Cheques are preferred over cash for making payment for goods or services in day to day business. In one of our articles published in septemberamendments to the negotiable instruments act, we discussed the amendments that were brought to the negotiable instruments act, 1881 act with an intention of amending the law related to promissory notes, bills of exchange and cheques. Section 6 of negotiable instruments act defines cheque as.
Important judgements i negotiable instrument act, 1881. But doing so by scrolling in this long pdf is hard. In criminal law, commission of offence is one thing and prosecution is quite another. Surendra malik and sudeep malik supreme court on dishonour of cheques and negotiable instruments in 2 volumesbuy here 4. Government has amended the negotiable instruments act, 1881 which. Be it enacted by parliament in the sixtyninth year of the republic of india as follows. It takes me a lot of time and energy to create these pdfs. For the purposes of this section, debt or other liability means a. Section 8 of negotiable instruments act is an important provision pertaining to the matter of cheque bouncing. Pdf negotiable instrument act and cheque used as collateral. Today we are sharing the most important expected mcq on negotiable instruments act with answers. Mcqs on negotiable instruments act with answers speakhr. The negotiableinstruments act 1881 came into being as an act to defineand amend the law relatingto promissory notes, bill of exchange and cheques.
The substantial law for the offences committed under the ni act is contained in section 8 of ni act and the procedural law can be noted from other sections. Complaint us 8 of ni act download format of complaint. An act to define and amend the law relating to promissory notes, bills of exchange and cheques. Landmark supreme court judgment on sec 8 of negotiable.
Section 8 of negotiable instruments act explained in details with case law for better understanding of a common man. Whether section 8 of negotiable instruments act, 1881, is attracted. Section 8 of negotiable instruments act legal helpline. The ingredients required for complying with section 8 as defined in kusum ignots. The court observed that the act was enacted and section 8 thereof incorporated with a specified object of making a special provision by incorporating a strict liability so far as the cheque as a negotiable instrument is concerned. In this case, it was held that dishonour of a negotiable instrument whether based on a second or any successive presentation of a cheque for the encashment of it would be regarded as dishonour within the meaning of section 8 of the negotiable instruments act, 1881. Negotiable instruments act pdf download 2019 writinglaw. Ni act negotiable instrument act cases in india hello. Get latest news, breaking news about section 8 ni act. By jivesh chandrayan indian courts are riddled with the humongous problem of pending cases. When the cheque sent to the bank for making payment is bounced, the payee sends a legal cheque bounce notice to the drawer to make the payment. Section 9 of the act is an example of a reverse onus clause that has been included in furtherance of the legislative objective of improving the credibility of negotiable instruments. The prosecution and recovery mechanism under sections 8 to 142 of the act was introduced by the. The main objective of incorporating section 8 in the act by amendment in 1988 was to inculcate faith in the efficacy of banking operations and credibility in transacting business on negotiable instruments to prevent issuance of dishonest cheques by the drawer.
So, to read any section just use the initial blue index pages of this pdf. Notice format under section 8 negotiable instruments act. Section 8 negotiable instruments act, 1881 an in depth analysis. As per the provisions of section 142 of the negotiable instruments act, a complaint can be made about the offence of cheque bounce under section 8 of the act, within one month of the expiry of 15 days period from receipt of above notice by the drawer of the cheque if no payment is made within those 15 days. Notice under section 8 should be sent through registered ad post only. Format notice of cheque dishonour this is a form of notice under section 8 of negotiable instrument act, 1881 for dishonour of cheque under certain grounds. Parliament with the aim to restore the credibility on the cheques to be used as a trustworthy medium inserted section 8 and 9. The law regarding the penalties in case of dishonour of cheques is contained in the negotiable instrument act, 1881 for short the ni act. Negotiable instruments act, 1881 this pdf is very big.
It is sometimes said that cases arising under section 8 of the act are really civil cases masquerading as criminal cases. As per the 2th report of the law commission almost 20 per cent of the pending litigation pertains only to cheque dishonor disputes under section 8 of the negotiable instruments act, 1881. Section 8142 of the negotiable instruments act, 1881. The chief object behind negotiable instruments act was to legalise the system under which negotiableinstruments pass from one hand to other in negotiationslike ordinary goods. A change in law means msmes have greater power in cheque. Instrument made, etc, out of india, but in accordance with the law of india. The law relating to the negotiable instruments is the law of commercial. The negotiable instruments act, 1881, provides for three instruments namely promissory notes, bills of exchange and cheques. A cheque is a bill of exchange drawn on a specified banker. Sections 8 and 141 of the negotiable instruments act.
Here you can find the mcqs on negotiable instruments act with answers. Whereas it is expedient to define and amend the law relating to, promissory notes, bills of exchange and cheques. The case under section 8 of the negotiable instruments should be filed within 15 days of receipt of the date of issuance of the notice under section 8. In this case, the supreme court has changed the basic criteria under section 8 of negotiable instruments act which is to prosecute a person who had presented the cheque which had been returned due to insufficiency of funds or if the amount exceeds the amount in the bank of the payer. These are extremely important for bank exams banking awareness part. The avowed object of chapter xvii of the act is to encourage the culture of use of cheques and enhance the credibility of the instrument.
After issuing a cheque, if the account is closed by the drawer and due to this reason, the cheque is dishonoured, an offence of cheque bouncing under section 8 of negotiable instruments act, 1881, may still be attracted, provided other ingredients of this offence. Thus the supreme court referred to the object of section 8 of the act in present case. Negotiable instruments like cheques, promissory notes, bill of exchange etc. This article on dishonour of cheque section 8 of the negotiable instruments act gives a comprehensive overview about all aspects of cheque bouncing and cheque dishonour as per laws in india. How to cross examine in court during the trial of cheque bounce case under section 8 of n. In the recent amendments in negotiable instruments act, section 143a was inserted which provides for interim compensation in case of an offense under section 8.
Learned counsel, therefore, submits that the proceedings under section 8 of the negotiable instruments act against the corporatedebtor could not have. Maliks negotiable instruments act, 1881 with exhaustive notes on dishonour of cheques buy here. According to section 1 of the negotiable instruments act, 1881ni act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. 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. This multiple questions on negotiable instruments act 1881 can be considered for mcqs on business law or mcqs on legal aspect of business for mba, bba, b.
The word negotiable means transferable with respect to consideration and instrument is a written document which creates a right in favour of a person. Trial us 8 ni actsignatures on cheque not disputedcheque to. I have created it to help law students go to a section quickly. Act has prescribed an outer limit of one month for filing of a complaint from the date the cause of action rises.
Cheques minimize the risk of carrying cash and ensure safety in making payment. Section 9 of negotiable instruments act, 1881 legodesk. The court in this case further held that even though a vicarious liability is fastened on a person connected with a company under section 141 unless a clear case is spelled out in the complaint against the person sought to be made liable, such person could not be made liable. Negotiable instrument act overview with supreme court. Mcq on negotiable instruments act with answers in pdf. An act further to amend 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 in favour of holder of the cheque. In india for cases related to cheque bounce, provisions are given under section 8 of negotiable instrument act, 1881.
Cheque dishonour laws in bangladesh l l explanation under. Section 8 in the negotiable instruments act, 1881 indian kanoon. The format can be also downloaded for free in pdf version from the link provided after the format. Characteristic features of negotiable instruments and presumptions under section 118 and section 119 of the negotiable instruments act, 1881. The act has been amended time and again to ensure and enhance trust in negotiable instruments. In that case, the drawer without prejudice to the other provisions of the said act, shall be. Read all latest updates on and about section 8 ni act. The supreme court has observed that a complainant in a cheque bounce case is bound to explain his financial capacity, when the same is questioned by the accused, by. Law governing liability of maker, acceptor or indorser of foreign instrument.
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