Negotiable Instruments Act, 1881

The appellants, former directors of Maanihada Tea Produce Company, invested capital and later resigned, demanding repayment of their shares. The respondent issued a promissory note and two cheques on 7 August 2002 to discharge the alleged liability, but later stopped payment, leading to complaints under Section 138 of …

The appellants, who were directors and guarantors of a company, were charged under sections 138 and 141 of the Negotiable Instruments Act for issuing cheques that bounced due to insufficient funds. While the criminal proceedings were pending, they filed personal insolvency applications under section 94 of the Insolvenc…

The appellants, Vineet Kumar and others, had loaned money to the complainant’s family and later filed complaints under Section 138 of the Negotiable Instruments Act for dishonoured cheques. The complainant subsequently alleged that the appellants had raped her and filed an application under Section 156(3) CrPC, leading…

The appellant lent Rs.2,20,000 to the respondent, who issued a post‑dated cheque that later bounced, leading to a complaint under Section 138 of the Negotiable Instruments Act. The respondent filed a petition under Section 482 of the CrPC seeking to quash the criminal proceedings, alleging that the loan was actually ta…

The appellant filed a complaint under Section 138 of the Negotiable Instruments Act alleging that a cheque drawn on the account of Dakshin Granites Pvt Ltd was dishonoured. The trial court, and later the High Court, allowed an application under Section 319 CrPC to implead the company as an accused, effectively bypassin…

The appellant was charged under Section 138 of the Negotiable Instruments Act for two dishonoured cheques filed as a complaint on 4 November 2016. After the 2018 amendment inserting Section 143A, the trial court ordered the appellant to pay interim compensation of 20% of the cheque amounts, which the High Court reduced…

The State of NCT of Delhi prosecuted Rajiv Khurana under Section 33 of the Insecticides Act, 1968, alleging that the product of his company failed to meet ISI specifications and that he, as Regional Technical Director, was responsible for quality control. The trial court issued summons, but the Delhi High Court quashed…

The Banco Nacional Ultramarino (BNU) operated branches in Goa, Daman and Diu until the territories were liberated from Portuguese rule in 1961. On the eve of liberation BNU transferred assets to its Lisbon head office, leaving local depositors and borrowers in distress. The President of India promulgated the Goa, Daman…

The Kerala State Co‑operative Marketing Federation (appellant) received a cheque for Rs 1,00,000 which was stolen, altered and used to open a fictitious account with State Bank of India (respondent No.1). The fraudster deposited the cheque, withdrew Rs 50,000 and then disappeared. The bank claimed protection under Sect…

The appellant, Amandeep Singh Saran, was charged with offences including IPC Section 409, which carries a maximum sentence of life imprisonment or up to ten years, and was being tried before the Chief Judicial Magistrate (CJM) of Raipur, a court that can impose at most seven years imprisonment. Having already spent ove…

The appellant, Dayle De’Souza, a director of Writer Safeguard Pvt. Ltd., was served with a notice and later a criminal complaint under Section 22A of the Minimum Wages Act, 1948 for alleged non‑compliance at an ATM site, although the company itself was not named as an accused. The High Court dismissed his petition unde…

The appellant K. Bhaskaran was accused of issuing a Rs.1 lakh cheque that was dishonoured for insufficient funds. The complainant, his brother, sent a notice of demand by registered post, which was returned as 'unclaimed'. The trial magistrate acquitted the appellant on the grounds of lack of territorial jurisdiction a…

The respondent filed a complaint under Section 138 of the Negotiable Instruments Act alleging that the appellant had issued a pronote and a cheque which later bounced. The appellant claimed the documents were forged and applied to a magistrate for their examination by a handwriting expert; the application was dismissed…

The appellants were convicted under Section 138 of the Negotiable Instruments Act for issuing a dishonoured cheque. Their criminal complaints were filed before the amendment (effective 1 September 2018) that inserted Section 148, which empowers an appellate court to order the appellant to deposit at least 20% of the fi…

The appellant issued two cheques to the original complainant, who later died. A complaint under Section 138 read with Section 142 of the Negotiable Instruments Act was filed, and an application for substitution of the deceased complainant was made but remained pending. Because the legal heirs of the complainant were ab…

The appellant NEPC Micon Ltd. and its directors issued five cheques to the respondent Magma Leasing Ltd. which were returned by the bank with the endorsement "account closed." The respondent instituted criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881. The appellants argued that "account cl…

The appellant, Ajitsinh Chehuji Rathod, was convicted under Section 138 of the Negotiable Instruments Act for issuing a cheque that was dishonoured for insufficient funds. He claimed that the signature on the cheque was forged and sought a handwriting expert's comparison during trial, which the trial court rejected and…

The appellant filed a criminal complaint under Section 138 of the Negotiable Instruments Act, which the magistrate referred to a Lok Adalat for settlement. The parties reached a compromise and the Lok Adalat passed an award, but the respondent failed to honour the payment schedule, leading the appellant to file an exec…

The appellant was convicted in two separate complaints under Section 138 of the Negotiable Instruments Act for issuing dishonoured cheques of Rs.5 lakh each, relating to two loans advanced by the same complainant on different dates but on identical terms. Both trials awarded ten months' simple imprisonment and a fine o…

The Bank of Baroda issued a possession notice under the SARFAESI Act to recover defaulted loans, but a clerical error inflated the outstanding amount, leading the borrower Phoenix India to allege defamation and file a criminal complaint under Sections 499, 500 and 501 IPC against the Bank's senior officers. The magistr…

The appellant, Sadanandan Badran, received a Rs 30,000 cheque from the respondent, Madhavan Sunil Kumar, to settle a loan. The cheque was presented twice (January and May 1991) and was dishonoured both times for insufficient funds. After each dishonour the appellant issued a legal notice demanding payment; the responde…

P.J. Agro Tech Ltd and its directors were served with a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 for the dishonour of a cheque that had been drawn by a third party, K. Balashankar Reddy, from his personal savings account. The appellants contended that the cheque was not drawn on any …

The State of Punjab appealed against a High Court order that quashed charges framed under Section 7(1)(a)(ii) of the Essential Commodities Act, 1955 against the directors of Mis. Sangrur Vanaspati Mills Ltd., leaving only the production manager to stand trial for adulterating vegetable oil. The Supreme Court examined w…

The complainant, owner of a theatre, alleged that the defendant, a film distributor, borrowed Rs.5 lakh in May 2006 and later issued a cheque on 16 January 2007 which was dishonoured. The trial court convicted the defendant under Section 138 of the Negotiable Instruments Act, a decision upheld by the Fast Track Court, …

The appellant was convicted by a Judicial Magistrate under Section 138 of the Negotiable Instruments Act for a cheque bounce, and sentenced to two months' imprisonment and a compensation of Rs. 3 lakh. The appellant appealed, and the appellate court set aside the conviction, remanding the matter to the magistrate for f…

Don Ayengia paid Rs 10 lakhs to Nazimul Islam for a construction agreement which later collapsed. A promissory note dated 13‑Aug‑2007 acknowledged the debt and stipulated repayment within a month via five post‑dated cheques, which were to be returned only upon payment. After the deadline the cheques were presented and …

The Supreme Court considered two criminal appeals: A.C. Narayanan, who challenged the taking of cognizance of a complaint filed by a power‑of‑attorney (POA) holder on behalf of six complainants under Sections 138 and 142 of the Negotiable Instruments Act, and G. Kamalakar, who contested a conviction for a dishonoured c…

The petitioner, Sanjay Kumar, alleged that he was appointed as a senior lecturer in a purportedly fake dental college, received post‑dated cheques for salary which later bounced, and consequently filed a criminal complaint under various IPC sections and Section 138 of the Negotiable Instruments Act. The High Court quas…

The appellants, G. Sagar Suri and Shama Suri, were accused of obtaining a loan of Rs. 50 lakh from a finance company and issuing cheques that later bounced. A complaint under Section 138 of the Negotiable Instruments Act was filed, and concurrently a First Information Report under Sections 406 and 420 of the IPC was lo…

The appellant, a chemical supplier, filed forty complaints under Section 138 of the Negotiable Instruments Act alleging that the respondent company’s post‑dated cheques were dishonoured because the signatures did not match the specimen signatures on file. The High Court quashed the complaints, holding that a signature …

Thermax Ltd. entered into purchase orders with K.M. Johny’s firms for storage tanks and consumables. The contracts fell apart and Johny alleged non‑payment of large sums, filing three earlier complaints that were closed as civil matters. In 2002 he lodged another complaint before a magistrate alleging offences under Se…

The appellant, Bhaskar Industries Ltd., filed a complaint under Section 138 of the Negotiable Instruments Act before a Judicial Magistrate in Bhopal. The magistrate issued summons, and when the second accused, Bhiwani Denim and Apparels Ltd., failed to appear, he applied for exemption from personal appearance under Sec…

Modi Xerox Ltd. made foreign exchange remittances in 1985 and was served a show‑cause notice under the Foreign Exchange Regulation Act, 1973 (FERA) against the company and its directors. One of the directors, Shailendra Swarup, contended that he was a part‑time, non‑executive director and had no responsibility for the …

Dr. Monica Kumar and her brother filed petitions under s.482 CrPC to quash two criminal cases filed against them while they were MBBS students, alleging that the complaints were motivated by the vindictive actions of the college chairman, Dr. P. Mahalingam, after a loan dispute. The High Court refused to quash the proc…

The Supreme Court examined whether an authorised signatory of a company could be prosecuted under Section 138 of the Negotiable Instruments Act, 1881 and Section 67/85 of the Information Technology Act, 2000 without the company itself being named as an accused. The Court held that Section 141 of the Negotiable Instrume…

The appellant, A.T. Sivaperumal, issued a cheque of Rs.10,22,419 to the complainant, Mohammed Hyath, to discharge a loan, but the cheque was returned marked "account closed". A complaint under Section 138 of the Negotiable Instruments Act was filed; the trial court acquitted the appellant for lack of proof, but the Kar…

The appellants, managers of INSCOL Multispecialty Hospital, were charged with medical negligence, cheating, forgery and other offences after the complainant alleged that his wife died due to wrong treatment at the hospital. The Punjab & Haryana High Court single judge framed the issue on the premise that the patient di…

The State of Karnataka appealed against the Karnataka High Court’s order acquitting a government servant, Chandrasha, who was convicted under Sections 7 and 13(1)(d) read with 13(2) of the Prevention of Corruption Act, 1988 for demanding and accepting a bribe of Rs 2,000 to facilitate the encashment of surrender‑leave …

The Karnataka State Pollution Control Board (KSPCB) filed complaints against the City Municipal Council (CMC) of Krishnarajapuram and its former commissioners for discharging untreated sewage in violation of the Water (Prevention and Control of Pollution) Act, 1974. The High Court quashed the proceedings under Section …

The appellant MSR Leathers sued the respondents for dishonour of four cheques. The cheques were presented, dishonoured, and a statutory notice was served; the drawer failed to pay. The cheques were presented a second time, again dishonoured, and a fresh notice was served before a complaint was filed. The issue was whet…

The Supreme Court examined whether a complaint under Section 138 of the Negotiable Instruments Act must be filed within one month of the cause of action arising, and specifically whether the day the cause of action arose should be counted in the 30‑day period prescribed by Section 142(b). Relying on Section 9 of the Ge…

The appellant, Mis Shankar Finance & Investments, a sole proprietary concern, filed a criminal complaint under section 138 of the Negotiable Instruments Act alleging a dishonoured cheque. The complaint was signed by the proprietor’s attorney‑in‑fact under a power of attorney, and the High Court held it non‑maintainable…

The appellant, Rathish Babu Unnikrishnan, challenged a summoning order issued under Section 138 of the Negotiable Instruments Act on the ground that the cheques were security instruments for a share buy‑back and not payable on a legally enforceable debt. The Delhi High Court dismissed his petition under Section 482 of …

The appellant, Rekha Sharad Ushir, was accused of dishonouring a cheque issued to Saptashrungi Mahila Nagari Sahkari Patsansta Ltd., a credit co‑operative society, under Section 138 of the Negotiable Instruments Act. The society filed a complaint before the Judicial Magistrate, alleging default on a loan and the non‑pa…

Syndicate Bank filed a suit in Goa to recover a loan advanced to Mr. Prabha D. Naik and others, alleging default on a promissory note. The trial court and the High Court dismissed the suit as barred by limitation, holding that the Portuguese Civil Code's Article 535 governed limitation in Goa. The Bank appealed, conten…

The appellant filed complaints under Section 138 of the Negotiable Instruments Act in a Mumbai magistrate’s court, alleging that cheques were drawn and handed over in Mumbai, dishonoured in Delhi, and a legal notice was issued from Mumbai. The respondents sought to have the complaints returned under Section 201 of the …

The appellant, Sanjabij Tari, appealed against the High Court’s ex‑parte order acquitting Kishore S. Borcar (respondent No.1) under Section 138 of the Negotiable Instruments Act for a bounced cheque of Rs.7.5 lakh. The central issue was whether the High Court could overturn the concurrent findings of the trial and sess…

The appellant filed a complaint under Section 138 of the Negotiable Instruments Act alleging that the respondents had purchased Desi Ghee and that three cheques totalling Rs. 14 lakh were dishonoured. After summons were issued and before the complainant's cross‑examination, the appellant sought to amend the complaint t…

The appellant issued a cheque of Rs.1,25,000 which was dishonoured for insufficient funds. The respondent sent a legal notice by registered post, which was returned unserved with the endorsement "party not in station arrival not known". A complaint under Section 138 of the Negotiable Instruments Act was filed and a cri…

The complainant filed a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 and Sections 420 and 114 of the Indian Penal Code against Gujarat State Fertilizer Co. Ltd. and several of its employees and directors. The accused filed applications before the Chief Judicial Magistrate seeking to have…

M/s Goyal Enterprises filed an application under Section 378(4) of the Code of Criminal Procedure, 1973 seeking leave to appeal an acquittal. The Jharkhand High Court dismissed the application summarily without providing any reasons. The Supreme Court held that a judicial order refusing leave to appeal must contain at …

Bridgestone India Pvt. Ltd. presented a cheque drawn by Inderpal Singh on Union Bank of India, Chandigarh, at IDBI Bank, Indore, which was later dishonoured. The company served a legal notice and filed a criminal complaint under Section 138 of the Negotiable Instruments Act in the Judicial Magistrate First Class, Indor…

The appellant, Anukul Singh, challenged a FIR and charge sheet filed under Sections 420, 467 and 468 IPC alleging cheating and forgery arising from a dispute over a loan and property ownership. He contended that the FIR was a retaliatory measure linked to a civil dispute over land possession and that the complainant ha…

The appellant filed a private complaint under Section 200 CrPC alleging forgery and fraud in connection with a machinery supply contract, leading the magistrate to take cognizance of offences under Sections 425, 468 and 471 IPC. The respondents obtained a stay of the cognizance by invoking Section 195(1)(b)(ii) CrPC, a…

Shri Gurudatta Sugars Marketing Pvt. Ltd. entered into agreements with Cane Agro Energy Ltd., which failed to supply sugar and issued two cheques that were later dishonoured for insufficient funds. The appellant filed a complaint under the Negotiable Instruments Act and obtained an order of interim compensation under S…

Ultra Tech Cement Ltd filed a complaint under Section 138 of the Negotiable Instruments Act against Rakesh Kumar Singh and another before the Metropolitan Magistrate, 11th Court, Calcutta. The issue was whether that magistrate retained jurisdiction after the Supreme Court’s decision in Dashrath Rupsingh Rathod v. State…

T. Nagappa was charged under Section 138 of the Negotiable Instruments Act for the dishonour of a cheque. He applied to the magistrate, invoking Section 243 of the Code of Criminal Procedure (mistakenly cited as Section 293), seeking to have the cheque examined by the Forensic Science Laboratory to determine the age of…

The Supreme Court, hearing Criminal Appeal No. 123 of 2021 (M/A No. 364 of 2021), reviewed its earlier direction dated 10 February 2021 to transfer Rs. 11,20,000 to the respondent along with accrued interest. It was discovered that the sum was held in a non‑interest‑earning account with UCO Bank, making the payment of …

The appellant supplied stone chips for a West Bengal construction project and was paid by post‑dated cheques issued by the respondent from its registered office in Kerala. The cheques were deposited in a West Bengal bank, bounced, and a criminal complaint under Section 138 of the Negotiable Instruments Act was filed be…

The appellants issued a Rs.2 lakh cheque to the respondents on 22 June 2003, which was presented and dishonoured three times within the six‑month period prescribed by Section 138 of the Negotiable Instruments Act. Notices were issued after each presentation, but the first notice was not served and the second was withdr…

The Supreme Court, acting suo motu, extended the limitation period for all judicial and quasi‑judicial proceedings due to the COVID‑19 pandemic, initially ordering an exclusion of the period from 15 March 2020 to 14 March 2021. After a decline in cases, the Court on 8 March 2021 limited the exclusion to that one‑year s…

The appellant paid Rs.3,50,000 as advance for the purchase of a house, later discovering the respondent had no title to sell it. The respondent issued a cheque for Rs.1,50,000 to return part of the advance, which was dishonoured, leading the appellant to file a complaint under Section 138 of the Negotiable Instruments …

The appellant filed a complaint under Section 138 of the Negotiable Instruments Act alleging that four cheques issued by the managing director of the respondent company were dishonoured. The magistrate recorded a rubber‑seal order stating that cognizance was taken and later issued process against the respondents. The r…

A.S. Pharma Pvt. Ltd. filed a complaint under Section 138 of the Negotiable Instruments Act, 1881 against Nayati Medical Pvt. Ltd. The respondents offered to settle and applied to compound the offence under Section 320 of the Cr.P.C., but the trial court dismissed the application. The Delhi High Court then exercised it…

Prakash Gupta, a director of Ideal Hotels & Industries Ltd, was prosecuted by SEBI for alleged price rigging and insider trading during the company's 1995 IPO. Gupta applied to have the offence under Section 24 of the SEBI Act compounded under Section 24A, but the trial judge and the Delhi High Court rejected the appli…

The appellant issued a Rs 5,00,000 cheque to the respondent, which was dishonoured after the appellant instructed his bank to stop payment. The respondent filed a complaint under Section 138 of the Negotiable Instruments Act, alleging that the cheque was drawn to discharge a hand loan of Rs 1,75,000 that he had given t…

Four cheques issued by the respondent to the appellant were dishonoured, leading the appellant to file a complaint under Section 138 of the Negotiable Instruments Act, 1881. The respondent claimed that a notice dated 28 July 2003, issued because a business transaction failed, barred the cheques from being cleared. The …

The appellant was first prosecuted under Section 138 of the Negotiable Instruments Act for issuing a dishonoured cheque and was convicted, later acquitted on appeal, with the appeal still pending. Subsequently, the same complainant filed an FIR under Sections 406, 420 and 114 of the Indian Penal Code alleging criminal …

Kusum Ingots and Alloys Ltd., a company, issued post‑dated cheques to Pennar Peterson Securities Ltd. The cheques were dishonoured, a statutory notice was sent, and the payee filed a complaint under Section 138 of the Negotiable Instruments Act. Before the 15‑day notice period expired, the company was declared "sick" b…

The appellants were charged under Section 138 of the Negotiable Instruments Act for dishonouring cheques. The complaint filed by the payee was not signed by the complainant but was later verified and signed on a verification statement before the magistrate. The legal issue was whether a complaint "in writing" under Sec…

Indian Bank sued K. Nataraja Pillai, his wife and son to recover Rs.1,21,006.98 secured by a promissory note, hypothecation deeds and an equitable mortgage. The defendants denied execution of the note and guarantee agreement, alleging fraud, undue influence and, in the son’s case, minority. The trial court held the not…

The appellant, HDFC Bank Ltd., filed a criminal complaint under Section 138 of the Negotiable Instruments Act against a private limited company and its three directors, including Mrs. Ranjana Sharma, for issuing a cheque that was dishonoured. The High Court of Bombay quashed the proceedings against Mrs. Sharma on the g…

Canara Sales Corporation held a current account with Canara Bank. The company's chief accounts officer fraudulently withdrew Rs.3,26,047.92 using 42 forged cheques. The company sued the bank to recover the amounts, alleging the cheques were unauthorized and that the bank could not rely on the company's alleged negligen…

Modi Cements Ltd. filed three criminal complaints under Section 138 of the Negotiable Instruments Act against K.K. Nandi for dishonour of cheques that were returned with a "payment stopped by the drawer" endorsement. The High Court quashed the complaints on the ground that the stop‑payment instruction precluded liabili…

M/s TRL Krosaki Refractories Ltd. (the appellant) issued cheques to M/s SMS Asia Private Ltd. which were dishonoured. The appellant filed a complaint under Section 138 of the Negotiable Instruments Act, 1881 before a Sub‑Divisional Judicial Magistrate, the complaint being filed in the name of the company and signed by …

The appellant issued a cheque drawn on State Bank of Indore which was presented by the respondent to its own bank and later to a collecting bank, but the cheque reached the drawer's bank after the six‑month period prescribed under the proviso to Section 138 of the Negotiable Instruments Act, 1881. A criminal complaint …

The appellant filed a complaint under Section 138 of the Negotiable Instruments Act alleging that a cheque dated 06‑03‑2017 issued by Respondent No.2 was dishonoured. The underlying transaction dated 2011 gave rise to a debt of approximately Rs 20.1 lakh, which the High Court held to be time‑barred and consequently qua…

The appellant filed a complaint under Section 138 of the Negotiable Instruments Act, 1881 alleging that a cheque dated 30‑06‑1990 was dishonoured due to insufficient funds and that the drawer had instructed the bank to stop payment, as indicated by the bank’s endorsement. A notice demanding payment was sent to the draw…

The appellant, a businessman, was ordered to repay Rs.45,00,000 borrowed from the respondent, but failed to do so, leading to an ex‑parte decree in the respondent's suit. The appellant first sought to set aside the decree via an application under Order IX Rule 13 CPC, which was dismissed, and later filed a first appeal…

Bijay Agarwal, an authorized signatory and director of M/s Gee Pee Infotech Pvt. Ltd., was convicted under Section 138 of the Negotiable Instruments Act for the dishonour of cheques issued by the company. The trial court imposed a fine and the appellate court suspended the sentence on the condition that Agarwal deposit…

M/s. Shree Daneshwari Traders (appellant) supplied rice bags to Sanjay Jain (respondent) on a mixed cash‑and‑credit basis. The respondent issued several cheques to settle credit purchases, but the cheques were later presented and dishonoured for insufficient funds. The appellant filed two complaints under Section 138 o…

The Indian Bank Association and other banking entities filed a writ petition under Article 32 seeking uniform guidelines for the trial of cheque‑dishonour cases under Section 138 of the Negotiable Instruments Act, 1881, alleging that despite the 2002 amendment (Sections 143‑147) courts were not following a uniform summ…

The respondent company borrowed Rs 900 lakhs from a consortium led by State Bank of Travancore (SBT). SBT assigned the debt to Kotak Mahindra Bank on 29‑03‑2006 but failed to inform the borrower. Unaware of this, the borrower later assigned a separate debt to Kotak and discovered the earlier assignment only when Kotak …

The petitioners Yogesh Upadhyay and Shakti Buildcon faced six complaint cases under Sections 138 and 142 of the Negotiable Instruments Act, filed by Atlanta Limited for dishonoured cheques relating to a single purchase transaction. Two of the cases were instituted in Nagpur because the cheques were presented through a …

The appellant, Jagdish Bagri, was convicted under Section 138 of the Negotiable Instruments Act for issuing a Rs.1 lakh cheque as security for a Rs.2,30,000 instalment payment that he failed to make. The conviction was affirmed by the Additional Sessions Judge and the Calcutta High Court dismissed his revision petition…

The Supreme Court examined an appeal by Tamil Nadu Mercantile Bank Ltd. against the Madras High Court's order quashing criminal proceedings under Section 482 of the CrPC against five non‑bank accused in a fraud case involving Rs 2.51 crore. The FIR and charge‑sheet alleged that the accused, in collusion with bank offic…

The former managing director of Goaplast (P) Ltd issued ten post‑dated cheques to the company to repay misappropriated funds, but the first cheque was returned unpaid after the drawer instructed the bank to stop payment. The company gave statutory notice and filed a complaint under Section 142 of the Negotiable Instrum…

The Supreme Court examined a reference concerning prosecutions under Sections 138 and 141 of the Negotiable Instruments Act, 1881, focusing on the necessity of specific averments in a complaint to hold company officers liable for a dishonoured cheque. It held that a complaint must expressly state that the accused was i…

Shivgiri Associates filed a complaint under Section 138 of the Negotiable Instruments Act in the Gurgaon court, alleging dishonour of cheques drawn on Axis Bank, Bangalore and presented for encashment at Standard Chartered Bank, Bangalore. The legal notice of demand was dispatched from Gurgaon on the respondent's instr…

The complainant filed a criminal complaint under Section 138 of the Negotiable Instruments Act against a company and its directors for dishonouring a cheque. The appellant, a director, argued that he was not a director at the relevant time and that the complaint failed to satisfy the statutory requirements of Section 1…

The appellant Kamala S. was charged under Section 138 of the Negotiable Instruments Act for issuing a cheque that was dishonoured for insufficient funds. She contended that the cheque was drawn to settle the balance of a property sale, not to discharge any debt. The trial court found her defence probable, rebutted the …

The appellant, S.M.S. Pharmaceuticals Ltd., filed a complaint under Sections 138 and 141 of the Negotiable Instruments Act alleging that a cheque issued by the respondent company was dishonoured. The complaint named the company, its Managing Director, and Director Neeta Bhalla, asserting that the directors were activel…

The complainant lent Rs 7,00,000 to the accused and later received a cheque of Rs 8,45,000, signed by the accused in his capacity as Director of Shilabati Hospital Pvt. Ltd., drawn on the company's bank account. The cheque bounced for insufficient funds and the complainant issued a statutory notice under Section 138 of…

The appellant, MMTC Ltd., filed two complaints under Section 138 of the Negotiable Instruments Act against the respondent company for cheques that were returned marked "payment stopped by drawer". The complaints were filed by the appellant’s regional manager, who allegedly lacked authority to represent the company. The…

Kaveri Plastics issued a cheque of Rs 1 crore to the respondent, which was returned unpaid. The plaintiff served two demand notices under Proviso (b) of Section 138 of the Negotiable Instruments Act, but each notice demanded Rs 2 crore, double the cheque amount. The Delhi High Court quashed the criminal complaint on th…

The appellant, a director of Indian Renewable Energy Development Agency Ltd, had taken a loan of Rs 11.5 crore which was disbursed on 28 February 2002. The loan agreement required repayment of installments by post‑dated cheques, which were described as "security". Several of these cheques were dishonoured and a crimina…

The appellant filed a complaint under Section 138 of the Negotiable Instruments Act against the respondent for dishonoured cheques, after serving a notice on 23 September 2008 but before the statutory 15‑day period expired (complaint filed on 7 October 2008). The trial magistrate took cognizance, which the Allahabad Hi…

Pramod Kumar Saxena, an under‑trial prisoner detained since August 1998 for alleged fraud and other offences in 48 cases across six states, filed a writ petition under Article 32 seeking release on bail, arguing that his prolonged detention violated his fundamental rights. The State argued that the offences were non‑ba…

The complainants, partners of Rati Woolen Mills, alleged that cheques issued by Munish Jain in his capacity as director of A.T. Overseas Ltd., a sister concern of Shree Nath Spinners Pvt. Ltd., were given for payment of goods supplied to Shree Nath Spinners. The cheques were dishonoured and the accused were charged und…

The Supreme Court, hearing a suo motu writ concerning the massive pendency of cases under Section 138 of the Negotiable Instruments Act, noted that over 33 lakh complaints were pending, a sharp rise from 26 lakh five months earlier. An expert committee had recommended the creation of de novo special NI courts, but amic…

Data Access (India) Ltd issued two cheques to Bharat Sanchar Nigam Ltd which were dishonoured for insufficiency of funds. A complaint under Section 138 of the Negotiable Instruments Act was filed against the company and its directors, including the appellant N. Rangachari. The appellant claimed he was an honorary chair…

The appellant, a movie producer, borrowed money from the complainant on the promise of a share in profits and later issued post‑dated cheques to repay the principal, which later bounced. The complainant filed a criminal complaint for cheating under Section 420 IPC and criminal breach of trust under Section 406 IPC. The…

HMT Watches Ltd filed a series of criminal complaints under Section 138 of the Negotiable Instruments Act against M.A. Abida for the dishonour of 57 cheques, which were stopped by a stop‑payment instruction and for which a demand notice had been issued. The High Court of Kerala, invoking its powers under Section 482 of…

Dalmia Cement (Bharat) Ltd. issued a cheque to Galaxy Traders which was dishonoured. The appellant served a statutory notice on 13 June 1998, but the respondents claimed they received only an empty envelope and wrote to the appellant on 20 June. The appellant re‑presented the cheque on 1 July, which was again dishonour…

The appellants were convicted under Section 138 of the Negotiable Instruments Act and ordered to pay a compensation of Rs.74,00,000, with the Sessions Court directing a 20% deposit of that amount. They challenged the deposit condition through a petition under Section 482 of the Criminal Procedure Code, which the High C…

The Calcutta Steel Co. (CSC) obtained a licence to import steel billets and, to reduce the end‑user's financial burden, opened an irrevocable Letter of Credit directly with the foreign supplier, though the name of the canalising agency MMTC was shown for exchange‑control purposes. Bills of exchange were drawn on "MMTC …

The State Bank of Patiala discounted bills of exchange and, when the drawee defaulted, levied a daily overdue charge as compensation. The revenue argued that this charge constituted "interest" under Section 2(7) of the Interest Tax Act, 1974 and was therefore taxable, while the bank contended it was merely compensation…

The appellant filed a complaint under Section 138 of the Negotiable Instruments Act alleging that a cheque of Rs.63,720 dated 6 April 1993 issued by the first respondent was dishonoured for insufficient funds. After a legal notice and a reply from the respondent, no payment was made. The trial court convicted the respo…

The Catholic Syrian Bank Ltd. extended credit facilities to a partnership (defendants 2‑4) secured by an equitable mortgage and purchased two cheques drawn by defendant 6 on Union Bank of India. The cheques were credited to the partnership’s account, later dishonoured, and the bank sued defendant 6 for the balance. Def…

The Industrial Investment Bank of India Ltd. (the bank) granted two short‑term working capital loans to Modern Maileables Ltd., with the company's director, Bishwanath Jhunjhunwala, executing a personal guarantee. After the borrower defaulted, the bank initiated attachment proceedings against the company under s.40 of …

The appellant Alavi Haji filed a complaint under Section 138 of the Negotiable Instruments Act alleging that the respondent Palapetty Muhammed had failed to pay a dishonoured cheque. The complaint stated that a notice was sent by registered post but was returned with an endorsement that the addressee was abroad, withou…

The appellant, Rameshchandra Ambalal Joshi, issued a cheque dated 31 December 2005 to repay a loan of Rs.1,00,000. The cheque was presented for payment on 30 June 2006 and was dishonoured for insufficiency of funds, leading to a prosecution under Section 138 of the Negotiable Instruments Act. The appellant contended th…

Bharat Barrel and Drum Manufacturing Co. sued Amin Chand Peyarelal for recovery of a Rs. 6,20,000 promissory note dated 11 October 1961. The defendant claimed the note was executed as collateral security for an import contract and that no consideration was received, while the plaintiff asserted it was a loan. The High …

The appellant's wife had subscribed to chit‑funds and furnished two blank cheques as security; when the cheques were later presented for encashment they were dishonoured, leading to criminal complaints under Section 138 of the Negotiable Instruments Act and parallel civil suits based on promissory notes. The trial cour…

The appellant was charged under Section 138 of the Negotiable Instruments Act for the dishonour of a Rs 5 lakh cheque, which the complainant alleged was issued to discharge a Rs 15 lakh loan. The appellant contended that no legally enforceable debt existed and that the cheque was issued on the basis of an anticipated l…

The appellant, a non‑executive director of M/S Elite International Pvt. Ltd., was charged under Section 138 read with Section 141 of the Negotiable Instruments Act for the dishonour of cheques issued by the company. She had resigned from the board on 17‑December‑2005, while the cheques were dishonoured in 2008. The com…

The appellant, a machinery dealer, filed a complaint under Section 138 of the Negotiable Instruments Act alleging that a cheque issued by a director of Ravi Organics Ltd. was dishonoured. The complaint named the director but did not name the company as an accused nor aver that the director was in charge of and responsi…

The National Small Industries Corporation Ltd. (NSIC), a government company, lodged a complaint under the Negotiable Instruments Act alleging that a cheque drawn in its favour was dishonoured. The complaint was filed by NSIC’s Development Officer, who is a public servant, and the Magistrate, relying on the proviso to S…

The appellant, an apple orchard owner, supplied packing material on credit to the respondent, who later settled the account and issued a cheque for Rs.5,38,856 which was returned for insufficient funds. The appellant filed a complaint under Section 138 of the Negotiable Instruments Act, 1881, which was dismissed by the…

Dr. Lakshman entered into agreements with several respondents to procure 70 acres of land for a payment of Rs 9 crore. The respondents allegedly sold the land before the agreement, issued cheques that later bounced, and forced the appellant to sign sale deeds, leading to complaints under the IPC for cheating, fraud and…

The appellant, Gunmala Sales Private Ltd., challenged the Calcutta High Court’s order quashing criminal complaints under Section 138 read with Section 141 of the Negotiable Instruments Act against several directors of the accused company. The Supreme Court held that a complaint must specifically aver that a director wa…

The Supreme Court examined complaints filed under Section 138 of the Negotiable Instruments Act against Gujarat State Fertilizer Co. Ltd. and its directors, including A.K. Singhania and Vikram Prakash, for dishonour of cheques. The key issue was whether the complaints specifically alleged that the directors were "in ch…

The appellant was convicted under Section 138 of the Negotiable Instruments Act for issuing two cheques of Rs.60,000 each that were dishonoured. He contested the existence of a creditor‑debtor relationship, the service of statutory notice, and the authenticity of his signature. The trial and appellate courts found that…

M/S. Escorts Limited filed a complaint under Section 138 of the Negotiable Instruments Act against Rama Mukherjee for a dishonoured cheque. The Delhi High Court held that, because the cheque was presented and the notice was sent from Delhi, the Delhi courts lacked jurisdiction to try the offence. On appeal, the Supreme…

The case concerned Ajoy Acharya, an IAS officer who was also a nominee Director of the Madhya Pradesh State Industrial Development Corporation (MPSIDC). He was charged for allowing the Board of MPSIDC to pass a resolution on 19‑April‑1995 that authorised short‑term loans, allegedly contrary to earlier government decisi…

Punjab and Sindh Bank filed a criminal complaint under Section 138 of the Negotiable Instruments Act against Vinkar Sahakari Bank Ltd. and others after a pay order drawn by the latter was dishonoured. The Bombay High Court had quashed the complaint on the ground that the pay order was not a cheque and that the bank was…

The appellants issued two cheques that were dishonoured. The respondent sent a notice under Section 434 of the Companies Act after the 15‑day period, and later presented the cheque again, issuing a second notice within 15 days. The Supreme Court examined whether a notice under Section 434 can satisfy the demand require…

The appellant, a director of Lakshmi Cement and Ceramics Industries Ltd., borrowed Rs 4,15,000 from the respondent and issued a cheque on the company's behalf, which later bounced. A notice of demand was served only on the appellant, not on the company, and a complaint under Section 138 of the Negotiable Instruments Ac…

The respondent alleged that it sold woolen carpets to the appellant and that the appellant issued two cheques which were later dishonoured, leading to a complaint under Section 138 of the Negotiable Instruments Act. The appellant contended that the cheques were advances for a purchase that never materialised and that n…

The appellants were convicted under Section 138 of the Negotiable Instruments Act for issuing dishonoured cheques. The trial magistrate recorded evidence and a successor magistrate delivered the judgment, leading the Gujarat High Court to order a de novo trial on the ground that the case was a summary trial and Section…

The appellant, S.P. Mani and Mohan Dairy, filed a complaint under Section 138 of the Negotiable Instruments Act against a partnership firm and its partners for a dishonoured cheque. The High Court, on a petition under Section 482 of the CrPC, quashed the criminal proceedings against one partner, Dr. Snehalatha Elangova…

The Oriental Bank of Commerce filed a criminal complaint under Section 138 of the Negotiable Instruments Act alleging that a cheque issued by the respondent, Prabodh Kumar Tewari, bounced due to insufficient funds. The respondent admitted signing a blank cheque and argued that the details filled in later were not in hi…

The complainant filed a complaint under Section 138 of the Negotiable Instruments Act alleging that a cheque issued by the respondent bounced and that a demand notice had been sent by registered post. The High Court quashed the complaint on the ground that the complaint did not specifically state that the notice had be…

Tata Finance Ltd filed a complaint under Section 138 of the Negotiable Instruments Act alleging that two cheques issued by a company were dishonoured. Notice was served on the company, its Chairman (Paresh P. Rajda) and a director. The Chairman moved an application under Section 395 CrPC to quash the proceedings, conte…

The appellant, who had lent money to the respondent firm, sued for recovery of amounts due under two promissory notes executed by the managing partner of the firm. The trial court decreed the suit in part, granting relief for one note but refusing relief for the second on the ground that it was not supported by conside…

The Supreme Court, acting suo motu under Article 32, examined the massive backlog of cases filed under Section 138 of the Negotiable Instruments Act, 1881, which was impeding the disposal of other criminal matters. After hearing the Amicus Curiae, the Solicitor General, the Reserve Bank of India and various state repre…

The appellant, a former director of a corporate debtor, was served a notice under Section 138 of the Negotiable Instruments Act for dishonoured cheques drawn before the commencement of insolvency proceedings. While the insolvency process and a moratorium under Section 14 of the IBC were imposed on 25 July 2018, the dem…

The appellant challenged a Kerala High Court revision order that set aside his conviction under Section 138 of the Negotiable Instruments Act, on the ground that the amount shown in the bill (Rs.1,61,000) was lower than the cheque amount (Rs.1,86,606.95). The appellant contended that the cheque was issued to discharge …

The appellant, an advocate, was charged by his client for failing to return a cheque handed over for filing a criminal complaint under Section 138 of the Negotiable Instruments Act and for not obtaining an acknowledgment of its return. The Disciplinary Committee of the Bar Council of India found him guilty of gross neg…

The appellant filed a summary suit under Order XXXVII of the CPC for recovery of Rs.64.18 lakh, while the respondent had earlier instituted a criminal prosecution under Section 138 of the Negotiable Instruments Act, which was later withdrawn. The trial court and the High Court granted conditional leave to defend, impos…

Suraj Lamp & Industries Ltd. filed a Special Leave Petition challenging a High Court order that held Section 20 of the Right to Information Act, 2005 to be merely directory. The company alleged that its land purchase in Gurugram was effected through a sale agreement, General Power of Attorney and a will (SA‑GPA‑Will) r…

The appellant borrowed Rs 1,00,000 from the respondent and issued a cheque which was dishonoured on 2 December 2003. The respondent received intimation of the dishonour on 3 December 2003 and issued a legal notice on 2 January 2004, i.e., on the 31st day. The appellant was convicted under Section 138 of the Negotiable …

The appellant, a food‑grain exporter, appointed the respondents as agents to arrange rail transport of wheat and rice. The respondents allegedly committed fraud, cheating, forgery, criminal breach of trust and misappropriation of funds, offences alleged to have been committed mainly in Uttar Pradesh but also involving …

The appellant, S.C. Garg, Managing Director of Ruchira Papers Ltd., was charged under Section 420 IPC for allegedly cheating respondent R.N. Tyagi after the parties had already resolved a dispute over seven dishonoured cheques under Section 138 of the Negotiable Instruments Act. The earlier NI Act case resulted in Tyag…

The appellant, a General Manager of J.K. Utility Division, was charged under Section 138 of the Negotiable Instruments Act for the dishonour of four cheques issued by his company. The cheques were presented for encashment, returned with a 'stop payment' endorsement, and no payment was made despite notice. The trial cou…

The appellant was ordered by a Judicial Magistrate to deposit Rs.10,00,000 as interim compensation under s.143A(1) of the Negotiable Instruments Act in a complaint under s.138 for a dishonoured cheque. The appellant challenged the order, arguing that s.143A(1) uses the word "may" and is therefore discretionary, not man…

Bharti Airtel Ltd. filed complaints under Sections 138 and 142 of the Negotiable Instruments Act against Fibtel Telecom Solutions and its two directors, Manju Sukumaran Lalitha and Susela Padmavathy Amma, after several post‑dated cheques were dishonoured. The appellant, Susela, a director but not the authorized signato…

The Tourism Finance Corporation of India advanced a Rs 30 crore loan to Rainbow Papers Ltd, whose Managing Director Ajay Kumar Goenka signed a post‑dated cheque that was later dishonoured. A demand notice under Section 138 of the Negotiable Instruments Act was issued and a criminal complaint was filed against the compa…

The appellant, Rohitbhai Jivanlal Patel, issued seven post‑dated cheques of Rs.3 lakh each to the complainant, which were later dishonoured for insufficient funds or a closed account. The trial court acquitted him, holding that the complainant had not proved the existence of a legally enforceable debt, but the High Cou…

The complainant, a widowed lady, filed a complaint under Section 138 of the Negotiable Instruments Act for the dishonour of several cheques issued by the respondent. The Judicial Magistrate sentenced the respondent to pay a fine of Rs 4 lakh as compensation, which the High Court later enhanced to Rs 6 lakh. The complai…

The appellant, National Small Industries Corporation Ltd., filed criminal complaints under Section 138 read with Section 141 of the Negotiable Instruments Act against the managing director and a director of the defendant company for dishonoured cheques. The High Court quashed the summoning orders against the director(s…

The Supreme Court examined whether a company that issued a cheque, which was later dishonoured, could avoid criminal liability under Section 138 of the Negotiable Instruments Act by invoking the provision of the Companies Act that makes any disposition of its property void after a winding‑up petition is presented. The …

The complainant S.S. Kumar filed a criminal revision against the conviction of Jagdeeshan under Section 138 of the Negotiable Instruments Act for two dishonoured cheques amounting to Rs. 4,50,000. The trial magistrate sentenced the accused to imprisonment till the rising of the court and a fine of Rs.5,000, which the c…

The appellant, St. Anny Felix Pinto, was convicted under Section 138 of the Negotiable Instruments Act and sentenced to imprisonment and a fine of twenty lakh rupees. He appealed to the High Court of Bombay for suspension of the sentence, which the High Court granted on the condition that a portion of the fine, four la…

Kapil Kumar sued Raj Kumar for recovery of Rs 1 lakh, alleging that Raj Kumar had borrowed the sum and executed a promissory note in Kapil's favour. The trial court, after evaluating the handwriting expert and deed‑writer testimony, held that the note was executed and decreed in favour of the plaintiff; the first appel…

The case involved a conviction under Section 138 of the Negotiable Instruments Act, where the appellants were sentenced to six months' rigorous imprisonment and a fine of Rs.10,000 each. While the criminal appeal was pending, the parties settled the monetary dispute and the appellants deposited Rs.5,96,688 with the mag…

The appellant, Dhanasingh Prabhu, advanced a loan of Rs.21 lakh to the respondents who were partners of the partnership firm “Mouriya Coirs”. The respondents issued a cheque in the name of the firm which was dishonoured, prompting the appellant to serve a statutory notice under Section 138 of the Negotiable Instruments…

Ashok Yeshwant Badave issued a post‑dated cheque dated 20‑Jan‑1996 as part of a sale transaction. The cheque was presented on 7‑Jul‑1996, within six months of the date on the cheque, and was dishonoured. The complainant filed a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 and Section 420…

The complainant, APS Forex Services, alleged that the accused Shakti International Fashion Linkers and others issued four cheques which were dishonoured, and a fresh consolidated cheque was also returned on a stop‑payment order. A complaint under Section 138 of the Negotiable Instruments Act was filed. The accused admi…

The appellant, S. Anand, was prosecuted under Section 138 of the Negotiable Instruments Act based on a complaint by Vasumathi Chandrasekar. The Metropolitan Magistrate acquitted him under Section 256(1) of the CrPC, citing the complainant's continuous absence and lack of representation. The High Court set aside the acq…

The case arose from a complaint under Section 138 of the Negotiable Instruments Act. The accused obtained a High Court order under Section 482 CrPC allowing her to appear through counsel and the High Court issued sweeping directions to all criminal courts to dispense with personal attendance of accused in such cases an…

The complainant, a government college lecturer, alleged that the accused, also a lecturer, borrowed Rs 14 lakhs in cash in 1997 and issued post‑dated cheques which were later dishonoured, leading to a complaint under Section 138 of the Negotiable Instruments Act. The trial court acquitted the accused, finding that the …

The Supreme Court examined whether a complaint under Section 138 of the Negotiable Instruments Act can be filed and verified by a power of attorney holder on behalf of the payee or holder in due course. The appellant, a company director, challenged the issuance of process based on complaints filed by a power of attorne…

The appellants were alleged to have issued two cheques on behalf of Karnataka News Net (Bangalore) Ltd. which were later dishonoured. A complaint under Section 138 of the Negotiable Instruments Act was filed, invoking Section 141 to hold the directors vicariously liable. The complaint, however, failed to specifically s…

The appellant, a chit‑fund company, advanced loans totalling Rs 21,09,000 to the respondent over several years. To partly discharge the debt, the respondent issued a cheque for Rs 19,00,000 which was returned marked ‘Account Closed’, leading to a complaint under Section 138 of the Negotiable Instruments Act. The trial …

The appellant, M/s Green Earth Asphalt & Power P. Ltd., filed a criminal complaint under Section 141 of the Negotiable Instruments Act alleging offences by the firm and its partners. The High Court, invoking Section 482 of the Code of Criminal Procedure, quashed the entire criminal proceeding, reasoning that the compla…

The Supreme Court examined an appeal by Malwa Cotton & Spinning Mills Ltd. against the Punjab and Haryana High Court’s order quashing criminal proceedings under Section 138 of the Negotiable Instruments Act against its former director, Virsa Singh Sidhu. The director claimed to have resigned before the disputed cheques…

DCM Financial Services Ltd. filed a complaint under Section 138 of the Negotiable Instruments Act alleging that a cheque issued by International Agro Allied Products Ltd. was dishonoured. The complaint named J.N. Sareen, a former director of the company, as an accused but did not allege that he was the signatory or tha…

Rallis India Ltd. filed criminal complaints under Sections 138 and 141 of the Negotiable Instruments Act alleging that a partnership firm and its partners had issued dishonoured cheques. The complaint specifically stated that the respondents were partners who managed the day‑to‑day affairs of the firm, making their lia…

The appellants, owners of agricultural land, entered into an agreement to sell the land to the respondent and issued two post‑dated cheques for the balance consideration. Both cheques were returned unpaid for insufficient funds, prompting the appellants to issue legal notices and file complaints under Section 138 of th…

The appeal concerned the territorial jurisdiction of a criminal court to try an offence under Section 138 of the Negotiable Instruments Act, 1881. The complainant, National Panasonic India Ltd., filed a complaint in Delhi alleging that a cheque drawn and presented in Chandigarh was dishonoured and that a notice was ser…

The appellant issued a cheque on 31 March 1998 which was dishonoured on two occasions; notices were served and a complaint under Section 138 of the Negotiable Instruments Act was filed on 28 November 1998. The appellant sought to quash the complaint on the ground that the complaint was filed beyond the one‑month limita…

The respondent alleged that the appellant, Rev. Mother Marykutty, had issued a post‑dated cheque of Rs.25 lakhs for construction work which later bounced, leading to a complaint under Section 142 of the Negotiable Instruments Act, 1881. The trial court acquitted the appellant, holding that she had successfully rebutted…

The petitioners, directors of several finance companies accused of large‑scale cheating, filed writ petitions under Article 32 claiming that their personal liberty under Article 21 was violated because they were detained in various jails despite obtaining bail in some cases. The Court held that while a petition under A…

The Supreme Court examined whether the appellants, who entered into buy‑back memoranda of understanding for residential units, were "speculative investors" and thus barred from filing Section 7 insolvency petitions, and whether the 2019 Insolvency and Bankruptcy Code (Amendment) Ordinance and the subsequent 2020 Amendm…

The husband entered into a hire‑purchase agreement with I.C.D.S. Ltd., and his wife stood as guarantor, issuing a cheque for part payment. The cheque was returned unpaid and the appellant served a statutory notice under Section 138 of the Negotiable Instruments Act, 1881, thereafter filing a criminal complaint. The res…

The appellant, an independent non‑executive director of D.S. Kulkarni Developers Ltd., was named in complaints under Section 138 of the Negotiable Instruments Act for the dishonour of cheques issued by the company. The cheques were not signed by him and he had resigned from the board before the offences occurred. He so…

The State of Rajasthan sued Mis. Kalyan Sundaram Cement Industries Ltd. for recovery of sums due under an agreement after three post‑dated cheques issued in 1989 bounced. Alongside civil suits for recovery, criminal complaints were filed under Section 138 of the Negotiable Instruments Act and Section 420 of the Indian …

The appellant was convicted under Section 138 of the Negotiable Instruments Act and sentenced by a Judicial Magistrate of First Class to six months' imprisonment and a fine of Rs 83,000. The conviction and sentence were affirmed by the Sessions Judge and the Gujarat High Court. On appeal to the Supreme Court, the appel…

The appellant, Advocate G. Lingappa, after representing the opposite side in a civil suit, persuaded the respondent, R. Janardhana Rao, to give him a personal hand loan of Rs 3,000 secured by a post‑dated cheque, which later bounced. The respondent filed a complaint before the State Bar Council alleging professional mi…

The appellant, Dr. Kamlesh Kumar, was charged under Section 138 of the Negotiable Instruments Act for the dishonour of a cheque that he alleged was stolen. The complainant presented the same cheque twice, first on 25‑Oct‑2008 and again on 10‑Nov‑2008, each time it was returned unpaid. A legal notice demanding payment w…

The appellants, directors of Cachet Pharmaceuticals Pvt. Ltd., were charged under the Drugs and Cosmetics Act, 1940 for manufacturing a sub‑standard drug (Hemfer syrup) and were summoned as accused under sections 16, 18 and 34. They challenged the summons, a criminal revision and a writ petition, arguing that mere dire…

The appellant alleged that the respondent had borrowed Rs.20 lakh and issued a cheque for the full amount, which was later dishonoured for insufficient funds. The respondent had, however, made part‑payments of Rs.4,09,315 before the cheque was presented for encashment, reducing the outstanding debt at the time of matur…

The appellant R. Vijayan filed a complaint under Section 138 of the Negotiable Instruments Act after a Rs.20,000 cheque issued by the first respondent was dishonoured. The First Class Magistrate convicted the respondent, imposing a fine of Rs.2,000 and directing payment of Rs.20,000 as compensation, with default impris…

The respondent filed a complaint under Section 138 of the Negotiable Instruments Act alleging that nine cheques issued by the appellants had bounced. The respondent claimed to have served statutory notice to the appellants on May 7, 2000, but the notice was not sent by registered post and the affidavits of the process …

Anil Kumar Sawhney and Gulshan Rai, shareholders of a private company, settled a dispute by a deed of compromise wherein Sawhney would transfer his shares to Rai for Rs.10 lakh payable by eight post‑dated cheques. Several of those cheques, dated in 1991, were later returned unpaid with the endorsement "not arranged for…

The appellant, a civil engineer, invested money with the respondents based on a profit‑sharing agreement, but the respondents failed to repay and issued a cheque that later bounced. The appellant filed a complaint under Section 138 of the Negotiable Instruments Act, and subsequently the respondents sought to quash the …

The appellant, having given a loan of Rs.60 lakh, received three cheques from the respondent which were dishonoured by stop‑payment. He issued a handwritten notice on 27 April 2012 and a formal legal notice on 24 May 2012 demanding payment, and subsequently filed a criminal complaint under Sections 138, 141, 142 of the…

The appellant Babu was charged under IPC s.302 for allegedly murdering his wife by giving her sodium cyanide disguised as an ayurvedic contraceptive. The trial court acquitted him due to lack of direct evidence and doubts about the prosecution's version, but the Kerala High Court reversed the acquittal and convicted hi…

The appellants were convicted under Section 138 of the Negotiable Instruments Act for issuing a cheque that bounced due to insufficient funds. After a series of appeals, the High Court reinstated the conviction, but the parties subsequently entered into a settlement agreement where the appellants paid the complainant R…

Hiten P. Dalal (appellant) issued four cheques to Standard Chartered Bank between December 1991 and March 1992 for securities transactions. The cheques were dishonoured for insufficient funds and the bank served notices under Section 138 of the Negotiable Instruments Act. Dalal was convicted by a Special Court establis…

K.A. Abbas was convicted under Section 138 of the Negotiable Instruments Act for issuing a bounced cheque and was sentenced to one year imprisonment with a direction to pay Rs 5 lakhs compensation to the complainant under Section 357(3) of the CrPC, with a default imprisonment of two months for non‑payment. He paid par…

The landlord, Dalip Kaur Brar, leased a residential premises to the respondents for three years at a rent of Rs.25,000 per month, increasing to Rs.28,000 after the first year. The tenants fell into arrears from November 2005, but the Rent Controller made a provisional assessment directing them to deposit only Rs.19,000…

The appellant, K.S. Joseph, was charged under Section 138 of the Negotiable Instruments Act for issuing bounced cheques. He challenged the magistrate's order of cognizance and issuance of summons on three grounds: the alleged non‑compliance with Section 200 of the CrPC requiring solemn affirmation, the delay of 62‑63 d…

The appellants, directors of a textile firm, were accused by a supplier (informant) of fraudulently transferring company assets and issuing post‑dated cheques that later bounced, leading to an FIR under Sections 420 and 120‑B IPC. The police concluded the matter was civil, but the magistrate rejected this view and took…

The Supreme Court examined the special provisions introduced by the 2002 amendment to the Negotiable Instruments Act, 1881, particularly section 145 which allows the complainant to give evidence on affidavit and permits the court to summon such deponents for examination. The Court clarified that under s.145(2) the accu…

The appellant, a businessman, handed blank cheques to his former power‑of‑attorney partner and later disputed a loan of Rs 1.5 lakh allegedly advanced by the partner's brother‑in‑law, repaying it by an account‑payee cheque that later bounced. He was convicted under Section 138 of the Negotiable Instruments Act, with th…

The appellant, Bell Marshall Telesystems Ltd., through its Managing Director Bhupesh Rathod, filed a complaint under Section 138 of the Negotiable Instruments Act against Dayashankar Prasad Chaurasia for dishonouring eight cheques of Rs.20,000 each. The respondent contested the complaint, claiming it was not filed by t…

The Shahabad Cooperative Sugar Mills Ltd., a cooperative society, dismissed its Chief Accounts Officer (respondent No.3) on misconduct charges after an ex parte enquiry. The employee appealed the dismissal to the Registrar under the Punjab Co‑operative Societies Act, 1961, which was dismissed, and then filed a revision…

The appellant, a former partner of a partnership firm, challenged a criminal complaint filed under Section 138 read with Section 141 of the Negotiable Instruments Act, alleging that the complaint did not specifically allege that he was in charge of the business at the time the cheque was issued and that he had resigned…