Negotiable Instruments Act

The petitioner, a common carrier governed by the Carriers Act, 1865, filed a petition before the National Consumer Disputes Redressal Commission alleging loss due to the carrier's negligence. The issue was whether Section 9 of the Carriers Act, which places the burden on the carrier to prove absence of negligence, appl…

The Supreme Court issued a clarificatory order modifying its earlier judgment (1 May 1996) in Writ Petition (C) No. 1128 of 1986, which had provided for discharge or acquittal of accused whose criminal trials were pending for a prescribed period. The Court held that the relief does not apply where the pendency is cause…

The appellant, a director of Mis. Rama Fibres Ltd, was charged under Section 138 of the Negotiable Instruments Act for dishonoured cheques. The company faced winding‑up proceedings, and the magistrate suspended prosecution against the company but proceeded against the directors. The appellant argued that prosecution of…

The Supreme Court examined whether an arbitrator, appointed without court intervention, could award interest for the period before the reference and for the pendente lite period of the arbitration. It held that an arbitrator is not a court within the meaning of CPC s.34 and therefore cannot award pendente lite interest…

Associated Cement Company Ltd. filed a complaint under Section 138 of the Negotiable Instruments Act against Kesvanand. The magistrate examined the company’s authorized representative, Puneet Aggarwal, on oath, but on two consecutive dates the representative was absent and the magistrate acquitted the accused under Sec…

Elkay International supplied chemicals to VHEL Industries Ltd., which issued three cheques that were later dishonoured. A complaint was filed against the company, its managing director, and other directors, including the appellant who had resigned from the board before the cheques were issued. The appellant sought to q…

The appellant UCO Bank alleged that its former employee Rajendra Shankar Shukla, while in charge of an extension counter, issued a Rs.3 lakh cheque without sufficient funds in 1991, leading to a charge sheet issued only in 1998. Shukla superannuated in January 1999, but disciplinary proceedings continued and he was dis…

The proprietor of Akash Traders filed a criminal complaint against the Managing Director of Britannia Industries Ltd, alleging criminal breach of trust under Section 406 IPC for demand drafts issued for undelivered goods. The company itself was not impleaded, and the appellant was initially discharged by the magistrate…

All Cargo Movers (I) Pvt. Ltd. and related companies entered into a contract of carriage to deliver consignments to Kenya. The goods were allegedly delivered without the original Bills of Lading, leading the consignee to claim breach of contract and file a civil suit in the Bombay High Court. More than a year later, th…

John K. John filed criminal complaints under Section 138 of the Negotiable Instruments Act alleging that Tom Vargheese issued two cheques which were dishonoured for insufficient funds. The trial court and the appellate court held that the respondent was guilty, but the Kerala High Court, on revision, acquitted him, fin…

The case concerned the discounting and rediscounting of two bills of exchange by UCO Bank, allegedly to provide funds to stock‑broker Harshad Mehta for securities transactions. The Supreme Court examined whether the Special Court (Trial of Offences Relating to Transactions in Securities) Act, 1992 had jurisdiction over…

A criminal complaint was filed against a medicine‑manufacturing company and its directors alleging that the drug was defective due to fungal growth, constituting a breach of the Drugs and Cosmetics Act. The company and its directors sought to quash the complaint under Section 482 of the Criminal Procedure Code. The Guj…

The appellant, a share broker, was charged under Section 138 of the Negotiable Instruments Act for the dishonour of a cheque issued to a member of the Cochin Stock Exchange. He contended that the cheque was given as security, not in discharge of any debt, and that he had discharged the initial evidential burden under S…

The appellant, a bank branch manager, was charged with multiple IPC offences for allegedly conspiring with co‑accused to cheat a complainant after a lost cheque book was reported. The complainant had written to the bank on 17 May 2004 requesting that the lost cheques not be honoured, and the bank indeed refused to clea…

The dispute arose from a terminated distributorship agreement between Varun Beverages Ltd. and the complainant, who alleged non‑payment of commissions and issued a cheque that later bounced. The complainant filed a criminal complaint under Section 138 of the Negotiable Instruments Act and later a Section 156(3) Cr.P.C.…