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 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 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, 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…

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 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 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…

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 …

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, 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…

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…

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…

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 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 …

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 …

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…

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…

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 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, 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 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…

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 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…

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…

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…

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…

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 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, 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…

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 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…

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…

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 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…

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, 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…

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 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…

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 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…

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 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 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 …

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 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 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 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 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 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…

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, 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 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…

The dispute arose under Section 138 of the Negotiable Instruments Act between Prateek Jain (complainant) and Rakesh Kumar Jain (accused). While a criminal appeal was pending, the parties settled and filed a joint application under Section 147 seeking compounding and requested that the matter be taken before a Lok Adala…

The respondent issued four cheques which were presented and dishonoured. The appellant sent a statutory notice on 8 January 1997, which was beyond the 30‑day period, but sent a second notice on 28 January 1997 within the limitation period after the second dishonour. A complaint was filed on 4 March 1997. The issue was …

Lafarge Aggregates & Concrete India Ltd. (appellant) lodged a complaint under Section 138 of the Negotiable Instruments Act after a cheque of Rs.2.5 lakh issued by the managing director of the respondents was stopped, leading to its dishonour. The respondents filed a petition under Section 482 of the CrPC offering to p…

A complaint under Section 138 of the Negotiable Instruments Act was filed against a partnership firm and its two partners. The complainant later applied under Section 319 of the Code of Criminal Procedure to join two additional partners as co‑accused, relying solely on the firm's registration document that listed them …

M/s. Kalamani Tex & Anr and its managing partner B. Subramanian issued a cheque of Rs 11.20 lakhs to P. Balasubramanian, which was later dishonoured. A complaint under Section 138 of the Negotiable Instruments Act was filed; the trial court acquitted the appellants, but the Madras High Court reversed the acquittal, con…

The appellants, brothers residing in the UK, sought recovery of Rs.1.20 crore from their maternal uncle (appellant No.3) after the uncle advanced the sum for a land sale and later demanded repayment. The uncle issued four cheques, two of which were dishonoured; a criminal complaint under Section 138 of the Negotiable I…

The appellant, Sharad Kumar Sanghi, Managing Director of Sanghi Brothers (Indore) Ltd., was charged under Section 420 IPC for allegedly cheating a buyer by delivering a vehicle with a replaced engine after an accident. The complaint, filed under Section 200 of the CrPC, primarily alleged wrongdoing by the company but d…

The appellants K.K. Singhal & Ors. issued 33 cheques that were dishonoured, leading the respondent Steel Strips Ltd. to file 26 complaints under Section 138 of the Negotiable Instruments Act. The parties later entered into a settlement at Chandigarh, where the respondent agreed to withdraw the complaints in exchange fo…

The appellant, a liaison for a private university, was issued a cheque of Rs.5 crore by the respondent, who was the Chairman and authorized signatory of Orion Education Trust, but the cheque was dishonoured. The appellant filed a criminal complaint under Sections 138 and 142 of the Negotiable Instruments Act, 1881 and …

Rajesh Jain alleged that he had advanced loans to Ajay Singh, who later issued a post‑dated cheque for repayment that was dishonoured for insufficient funds. Jain filed a complaint under Section 138 of the Negotiable Instruments Act, 1881; the trial court acquitted Singh and the High Court upheld the acquittal. The Sup…

The petitioners, a UAE entity, claimed that the respondents defaulted on payments under a 2004 MoU and invoked arbitration in 2022, eleven years after the alleged breach in 2011. The petition sought appointment of an arbitrator under Section 11(6) of the Arbitration and Conciliation Act, 1996, while criminal proceeding…

The dispute concerned the authority of Hammad Ahmed, the appellant, to act as Chief Mutawalli of Hamdard Laboratories (India) after the Supreme Court, in its April 3, 2019 judgment (C.A. Nos. 3382‑3383), upheld his appointment but erroneously stated that the parties would continue with the "management" of Hamdard as pe…

The Bank of Baroda had granted a loan to the partnership firm Global Packaging, which issued three cheques that were later dishonoured for insufficient funds. A complaint under Section 138 read with Section 141 of the Negotiable Instruments Act was filed against the authorised signatory Simaiya Hariramani and his partn…

The appellant, Mudibasappa, issued a cheque for Rs.6,00,000 that was returned for insufficient funds, leading the complainant, Basalingappa, to file a complaint under Section 138 of the Negotiable Instruments Act. The trial court acquitted the accused, holding that the complainant failed to prove his financial capacity…

The appellant, Sumeti Vij, ordered non‑woven fabric from the respondent, received the goods and issued two cheques to pay the invoices. Both cheques were returned by the bank for insufficient funds; legal notices were served but the appellant neither responded nor paid within the statutory period, leading to two compla…

The Supreme Court examined whether a Special Judge could summon individuals who were not named in the CBI charge‑sheet in the 2G spectrum case, on the basis that they were the "alter ego" of the companies charged. The Court held that while a magistrate may summon a non‑named person if prima facie material exists, the S…

B.P.L. Ltd., facing severe financial distress, sought approval of a scheme of arrangement under Section 391 of the Companies Act, 1956. Infrastructure Leasing & Financial Services Ltd. (the appellant) was a secured creditor with a hypothecation charge registered against B.P.L. but later argued that a consent arbitratio…

The appellant, K.S. Ranganatha, was charged under Section 138 of the Negotiable Instruments Act for the dishonour of a cheque issued to the respondent, Vittal Shetty, for a loan of Rs.3,75,000. The trial court acquitted the appellant, but the Karnataka High Court reversed the acquittal, finding that the respondent had …

Anita Malhotra, a former non‑executive director of Lapareil Exports (P) Ltd., resigned on 31‑08‑1998. In 2004 the company issued cheques that were later dishonoured, and the Apparel Export Promotion Council filed a complaint under Section 138 of the Negotiable Instruments Act, naming Malhotra as accused director. Malho…

M/S Gimpex Private Limited sued Manoj Goel for dishonour of cheques under Section 138 of the Negotiable Instruments Act. After the first set of cheques bounced, the parties entered into a deed of compromise in March 2013, under which new cheques were issued; those too were dishonoured, leading to a second criminal comp…

The petitioners, home buyers in a Gurgaon housing project, obtained a refund order with interest from the NCDRC, which was stayed by the Delhi High Court. An operational creditor later initiated a corporate insolvency proceeding against the developer (Today Homes & Infrastructure Pvt Ltd) under Section 9 of the IBC, le…

The appellant, Bireendra Prasad Sah, received a bank memo on 4 December 2015 about two dishonoured cheques and issued a legal notice on 31 December 2015, within the 30‑day period prescribed by the Negotiable Instruments Act, 1881. After unsuccessful attempts to obtain proof of service from the postal department, he sen…

M/s Celestium Financial, a finance partnership, sued three borrowers for dishonouring cheques under Section 138 of the Negotiable Instruments Act. The trial magistrate acquitted the borrowers, finding the complainant had not proved a legally enforceable debt. The appellant sought special leave to appeal under Section 3…

The appellant was convicted under Section 138 of the Negotiable Instruments Act for issuing dishonoured cheques and also faced an FIR under Sections 406, 420 and 120B of the IPC for allegedly cheating a complainant after taking an advance for a laser cutting machine. Both parties initially agreed to settle the dispute …

The complainant, a practising advocate, received a post‑dated cheque from the husband (original accused No.1) of the appellant for professional fees. The cheque was drawn on the husband’s personal bank account, signed by him, and later returned unpaid. A criminal complaint under Section 138 read with Section 141 of the…

In a suo motu writ petition, the Supreme Court examined the extension of limitation periods granted due to the COVID-19 pandemic. Earlier orders had excluded the period from 15 March 2020 to a date to be fixed, allowing litigants extra time to file suits, appeals and other proceedings. Observing that the pandemic situa…

The complainants placed orders with Rifa Healthcare (India) Pvt. Ltd. and issued demand drafts, but the company failed to deliver the goods and later issued 18 cheques that were dishonoured. The complainants filed complaints under Sections 138 and 141 of the Negotiable Instruments Act, implicating the company and one o…

The complainant, Sumit Bansal, entered into a sale agreement with MGI Developers and its proprietor Manoj Goyal, paying the full consideration. When the sale deeds were not executed, the parties issued several cheques—both from the firm and personally by the proprietor—which were subsequently dishonoured and statutory …

The appellants, partners of a firm, issued numerous cheques to a retiring partner which were dishonoured, leading to 28 complaints under Section 138 of the Negotiable Instruments Act. They were convicted and sentenced, but the appellate court suspended the sentence on condition that they deposit 25% of the compensation…

The case involved two cheques that were dishonoured and a notice under Section 138(b) of the Negotiable Instruments Act was served on the drawer. The drawer received the first notice on 14 June 2006 but the payee did not file a complaint within the 15‑day period prescribed under Section 138(c). A second notice was sent…

The appellant issued a cheque of Rs.69,500 that was dishonoured and was convicted under Section 138 of the Negotiable Instruments Act, receiving a sentence of six months imprisonment and a compensation order of Rs.80,000 under Section 357(3) of the CrPC. The Calcutta High Court, on revision, set aside the imprisonment …

The appellant alleged that the respondent borrowed Rs. 2 lakh and issued a cheque as security, which later bounced for insufficient funds, leading to a complaint under Section 138 of the Negotiable Instruments Act. The trial court acquitted the respondent, finding contradictions in the appellant's testimony, lack of ev…

The petitioner, Anil Gupta, the Managing Director of Star India Pvt Ltd, appealed against a Delhi High Court order that quashed the summons issued to the company but allowed proceedings against him under Sections 138 and 141 of the Negotiable Instruments Act, 1881. The complaint alleged dishonour of cheques issued by t…

The appellant, a mechanic, borrowed Rs 45,000 from the respondent, an engineer, and issued a post‑dated cheque for repayment. The cheque was presented but the bank returned it with a "payment stopped by drawer" memo after the appellant gave stop‑payment instructions. He failed to honour the cheque within the statutory …

Renuka filed a complaint under Section 138 of the Negotiable Instruments Act against the second respondent, who had issued a cheque of ₹50 crore as part of a settlement agreement with her husband. The cheque was dishonoured with the remark "payment stopped by drawer" and Renuka served the statutory notice, leading to t…

The appellants, purchasers, issued post‑dated cheques as advance payment for aircraft parts ordered from the respondent supplier. The supplier cancelled the orders and returned the cheques, but the cheques were later presented and dishonoured, leading to a complaint under Section 138 of the Negotiable Instruments Act, …

The Haryana State Co‑op Supply and Marketing Federation supplied cotton bales to Jayam Textiles and the latter issued four cheques that later bounced for insufficient funds. The Federation filed complaints under Sections 138 and 140 of the Negotiable Instruments Act, read with Section 420 of the IPC, but the Magistrate…

The respondent filed a complaint under Section 138 of the Negotiable Instruments Act alleging that the appellant borrowed Rs.7 lakhs and issued a cheque which was dishonored. The appellant was convicted by the trial court, and the conviction was upheld by the Sessions Court and the High Court. The Supreme Court conside…

The appellants purchased Kisan Vikas Patras (KVPs) in joint names and, relying on an agent named Rukhsana, handed the certificates to her for transfer. Rukhsana encashed the KVPs at a different post office and received Rs. 25,54,000 in cash, which she kept. The appellants filed a consumer complaint; the NCDRC dismissed…

The appellant Vijay lodged a complaint under Section 138 of the Negotiable Instruments Act alleging that respondent Laxman had issued a cheque to repay a personal loan of Rs.1,15,000, which was later dishonoured for insufficient funds. Laxman contended that the cheque was a security deposit taken as part of a customary…

The petitioner, Poonam, was convicted under Section 138 of the Negotiable Instruments Act, 1881 and failed to disclose this conviction in the affidavit required by Rule 24‑A of the Madhya Pradesh Nagar Palika Nirvachan Niyam, 1994 when filing her nomination for councillor. The trial court declared her election void und…

The appellant K. Hymavathi loaned Rs 20 lakh to respondent No.2, who executed a promissory note on 25 July 2012 promising repayment by December 2016. The respondent later issued a cheque for Rs 10 lakh on 28 April 2017, which was dishonoured, leading the appellant to file a complaint under Section 138 of the Negotiable…

The appellant booked a flat with the respondent's company and paid Rs.74,200, for which the respondent later issued a cheque for refund. The cheque was drawn by the respondent in his personal capacity and was dishonoured, leading the appellant to issue a notice under Section 138 of the Negotiable Instruments Act and fi…

The Central Bank of India sued Asian Global Ltd., its sister concern, and several directors for offences under Sections 138 and 139 of the Negotiable Instruments Act, alleging that a cheque issued as a corporate guarantee was dishonoured. The trial court held the bank to be a holder in due course and rejected the direc…

The appellant issued a notice under Section 138 of the Negotiable Instruments Act to a company whose cheque was dishonoured, but no separate notice was sent to the company's directors. A complaint was filed against the company and its directors under Sections 138 and 141. The Bombay High Court held that individual noti…

Standard Chartered Bank filed three complaints under Section 138 of the Negotiable Instruments Act against ABG Shipyard Ltd. and several of its directors for the dishonour of cheques issued to repay a Rs.200 crore loan. The Metropolitan Magistrate issued summons to the company and the directors, but the Bombay High Cou…

Shri Sendhur Agro & Oil Industries, a proprietorship based in Coimbatore, defaulted on an overdraft facility and Kotak Mahindra Bank filed a complaint under Section 138 of the Negotiable Instruments Act in the Judicial Magistrate Court at Chandigarh. The petitioner sought transfer of the criminal case to a court in Tam…

Bir Singh (complainant) advanced a Rs 15 lakh loan to Mukesh Kumar (accused) and received a cheque which was dishonoured for insufficient funds on two occasions. After a statutory notice went unanswered, a criminal complaint under Sections 138 and 139 of the Negotiable Instruments Act, 1881 was filed. The trial court c…

The appellant was charged under Sections 419, 420, 406 and 506 of the IPC and Section 138 of the Negotiable Instruments Act for cheating a complainant of over Rs. 37 lakh. During a seven‑month investigation he was never arrested, and when he sought to quash the FIR the High Court granted him time to appear before the t…

The respondent filed a complaint under Section 138 of the Negotiable Instruments Act alleging dishonour of a cheque, but the complaint was filed two days after the statutory one‑month period. The magistrate took cognizance of the complaint on the same day it was filed, before any application for condonation of the dela…

The appellant, B. Sunitha, issued a cheque to the respondent advocate for legal fees, which the advocate later claimed were 16% of the compensation awarded by a Motor Accident Claims Tribunal. The cheque was dishonoured and the advocate filed a complaint under Section 138 of the Negotiable Instruments Act. The appellan…

The respondent alleged that the appellant borrowed Rs.1,50,000 and issued a cheque which later bounced, invoking Section 138 of the Negotiable Instruments Act. The trial court acquitted the appellant, finding the complainant's evidence riddled with contradictions and gaps, particularly regarding the loan amount, date, …

A complaint was lodged in 1989 alleging adulteration of Dalda Vanaspati Ghee manufactured by Hindustan Unilever Limited (HUL). The trial magistrate initially absolved the company’s directors and continued prosecution against the nominated officer, Nirmal Sen, who was later convicted under the Prevention of Food Adulter…

The appellants, M/s. Meters and Instruments Private Ltd. and others, were charged under Section 138 of the Negotiable Instruments Act for issuing a dishonoured cheque to the complainant, Kanchan Mehta. The complainant refused to accept a demand draft, while the accused offered to pay the cheque amount with interest and…

Apex Distributors and another issued a cheque on Vyasa Bank, Vellore, to Timex Group India Ltd., which was later dishonoured at Vellore. Timex sent statutory demand notices from Delhi and filed a criminal complaint under Section 138 of the Negotiable Instruments Act in a Delhi court. The petitioners filed a transfer pe…

The petitioners borrowed Rs.15 lakh from the respondent company and issued a cheque for partial repayment, drawn on a Bangalore bank but presented for encashment in Gurgaon, where it was dishonoured. The respondent served statutory notices from Gurgaon and filed a complaint under Section 138 of the Negotiable Instrumen…

The appellant borrowed Rs 30,000 from the respondent and issued a post‑dated cheque dated 04‑09‑2003, which was presented after three years and returned for insufficient funds. The respondent filed a complaint under Section 138 of the Negotiable Instruments Act; the trial court acquitted the appellant, holding that the…

V.K. Bansal, a director of several companies, was convicted under Section 138 of the Negotiable Instruments Act for issuing cheques that were dishonoured while repaying loans from Haryana Financial Corporation. He received multiple imprisonment terms and fines and sought a direction under Sections 427 and 482 of the Co…

The appellant, Rajendra Anant Varik, was convicted under Section 138 of the Negotiable Instruments Act for a dishonoured cheque and was ordered to pay compensation. He appealed, and the First Appellate Court acquitted him, holding that the complainant was an unlicensed money‑lender under the Goa Money‑Lenders Act, whic…

The appellant was convicted under Section 138 of the Negotiable Instruments Act and was ordered to pay Rs.2.75 lakh as compensation under Section 357(3) of the Code of Criminal Procedure, with a default imprisonment of one month for non‑payment. He served both the principal sentence and the default imprisonment, after …

The appellant filed a complaint under Section 138 of the Negotiable Instruments Act alleging that a partnership firm, Vainqueur Corporate Services, and its partners issued several cheques that were dishonoured for insufficient funds after the appellant had performed data‑entry work. The complaint detailed the partnersh…

The Supreme Court examined complaints filed under Section 138 of the Negotiable Instruments Act in Delhi Metropolitan Magistrates, where cognizance was taken solely because statutory notices were issued from Delhi. The Delhi High Court had directed the return of such complaints, holding that the place of notice issuanc…

The case concerned complaints under Section 138 of the Negotiable Instruments Act filed by the respondent companies against the appellants for dishonour of cheques. The issue was whether the presentation of a cheque for collection at a bank in Bombay or the issuance of a default notice from the complainant's location c…

The complainant presented a cheque, issued by the accused on a Karnataka bank, for collection at a Kerala bank and filed a complaint under Section 138 of the Negotiable Instruments Act. The question before the Supreme Court was whether the mere presentation of the cheque in Kerala, or the issuance of a notice demanding…

The appellants filed complaints under Section 138 of the Negotiable Instruments Act, 1881 in Delhi after cheques drawn on banks outside Delhi were presented for collection in Delhi and subsequently dishonoured. The notice of dishonour was also issued from Delhi. The Metropolitan Magistrate returned the complaints and t…

The appellants, directors of a company, issued a post‑dated cheque as security for payment under a Power Supply Agreement, but the cheque was later presented and dishonoured after the company failed to pay for electricity supplied. A complaint under Section 138 of the Negotiable Instruments Act was filed, and the magis…

The appellants, nine defendants in a commercial suit filed by IL and FS Financial Services Ltd, failed to file written statements within the 30‑day period (ending 8 March 2020) and the 120‑day outer limit (ending 6 June 2020). They sought an extension on 20 January 2021, invoking the Supreme Court's suo motu orders tha…

The accused R. Mohan was convicted under Section 138 of the Negotiable Instruments Act for issuing a cheque without sufficient funds and was sentenced to three months' simple imprisonment and ordered to pay Rs.5 lakh compensation to the complainant A.K. Vijaya Kumar under Section 357(3) of the CrPC, with an additional …

The appellant and respondent were parties to commercial transactions in which five cheques issued by the appellant were dishonoured, leading to criminal proceedings under Section 138 of the Negotiable Instruments Act, 1881. After protracted litigation up to the Supreme Court, the parties reached a settlement and sought…

The appellant filed a complaint under Section 138 of the Negotiable Instruments Act against the respondent for dishonoured cheques, after serving a statutory notice on 23‑09‑2008. The complaint was lodged on 07‑10‑2008, i.e., before the expiry of the 15‑day period prescribed in the proviso to Section 138(c). The magist…

The appellant, a real‑estate developer, was penalised by the National Consumer Disputes Redressal Commission (NCDRC) with 27 penalties under Section 27 of the Consumer Protection Act for failing to deliver possession of residential units. While insolvency proceedings were initiated against the appellant under Section 9…

The appellants, K.S. Mehta and Basant Kumar Goswami, were non‑executive directors of Blue Coast Hotels & Resorts Ltd. and were implicated in criminal complaints under Section 138 read with Section 141 of the Negotiable Instruments Act for dishonoured cheques issued to repay an inter‑corporate deposit. They neither atte…

The appellant, claiming to be the sole proprietor of Vijaya Automobiles, filed a complaint under Section 138 of the Negotiable Instruments Act against the respondent who issued a cheque in the name of the firm that later bounced. The trial court and appellate court convicted the respondent, but the High Court set aside…

Satish P. Bhatt and Vishwanath R. Nayak, directors of Astral Glass Pvt Ltd, were convicted under Section 138 of the Negotiable Instruments Act and sentenced to ten months imprisonment with a compensation liability of Rs.1.10 crore. They entered into a settlement undertaking on 3 July 2018 to pay Rs.4.63.5 lakh to the c…

The Supreme Court examined whether the Reserve Bank of India's (RBI) communication dated 9 June 1997 to SIDBI was a binding directive under the RBI Act, 1934 and the Banking Regulation Act, 1949, and whether SIDBI was justified in withholding interest on bonds issued by CRB Capital. The Court held that RBI’s directions…

The appellant, Noor Mohammed, issued a Rs.7,00,000 cheque to the respondent, Khurram Pasha, which was dishonoured, leading to a complaint under Section 138 of the Negotiable Instruments Act. The trial court ordered the appellant to deposit 20% of the cheque amount as interim compensation under Section 143A, which he fa…