Negotiable Instruments Act, 1881

The complainant filed an application under Section 378(4) of the CrPC seeking leave to appeal against the trial court’s acquittal of the accused under Section 138 of the Negotiable Instruments Act. The applicant later sought to withdraw the application, relying on a recent Gujarat High Court decision (Shivsinh Ganpatsi…

The complainant filed an application under Section 378(4) of the CrPC seeking leave to appeal the trial court’s acquittal of the accused under Section 138 of the Negotiable Instruments Act. The applicant’s counsel requested to withdraw the application in view of a recent Gujarat High Court decision (Shivsinh Ganpatsinh…

The complainant filed an application under Section 378(4) of the CrPC seeking leave to appeal the trial court’s acquittal of the accused under Section 138 of the Negotiable Instruments Act. The applicant’s counsel requested to withdraw the application in view of a recent Gujarat High Court decision (Shivsinh Ganpatsinh…

The appellant filed an appeal under Section 378 of the Code of Criminal Procedure against the trial court's acquittal of the accused under Section 138 of the Negotiable Instruments Act. The High Court examined whether a victim‑complainant has the right to appeal the acquittal before a High Court or must approach the Se…

Manish Rasikbhai Patel filed a criminal miscellaneous application seeking recall of an order dated 05.01.2026 that had suspended his sentence and granted bail in a revision proceeding under Section 138 of the Negotiable Instruments Act. The applicant had earlier filed two separate revision applications (Nos. 1620/2024 …

The complainant filed an application under Section 378(4) of the CrPC seeking leave to appeal against a 2022 acquittal of the accused under Section 138 of the Negotiable Instruments Act. The applicant’s counsel requested to withdraw the application in view of a recent Gujarat High Court decision (Shivsinh Ganpatsinh So…

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…

The respondent advanced a total of Rs. 3,16,000 to the appellant, who later issued a cheque that was dishonoured, leading to a complaint under Section 138 of the Negotiable Instruments Act. The trial court acquitted the appellant, holding that he had discharged the burden of proof on a pre‑ponderance basis despite not …

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 …

The respondent filed a complaint under Section 138 of the Negotiable Instruments Act against five partners of a firm for the dishonour of a cheque. The complaint did not specifically allege that the accused partners were in charge of or responsible for the firm’s business. A magistrate discharged the accused for lack o…

The complainant, a petroleum trader, alleged that four members of the same family issued a cheque of Rs 24,92,115 drawn on Indian Bank, Sonepat, which was returned unpaid with the remark "Account closed". He filed a criminal complaint under Section 138 of the Negotiable Instruments Act against the four accused. The acc…

Everest Advertising Pvt. Ltd. filed a complaint under the Negotiable Instruments Act against Dalmia Industries Ltd. and its Chairman and Managing Director for dishonour of post‑dated cheques. A Metropolitan Magistrate issued summons against the respondents under CrPC s.204, but later recalled the order for the Chairman…

The appellants, Dilip S. Dahanukar and Goodvalue Marketing Co. Ltd., were convicted under Section 138 read with Section 141 of the Negotiable Instruments Act and were ordered to pay a fine of Rs.25,000 and a compensation of Rs.15,00,000 under Section 357(3) of the CrPC. The trial court also directed the appellants to d…

The appellants issued cheques that bounced, and the respondent served a notice demanding payment on 29 September 1995. Under Section 138(c) of the Negotiable Instruments Act, the appellants had 15 days to pay, which expired on 14 October 1995, giving rise to a cause of action on 15 October 1995. The respondent filed a …

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 case concerned whether an arbitrator appointed, with or without court intervention, could award interest on sums due for the period before the arbitration reference (pre‑reference period) in disputes that arose before the Interest Act, 1978. The contractor’s award included interest from the due date to the date of …

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 husband and wife (appellants) advanced loans to Dr. G. Adinarayana (respondent) who issued four cheques as repayment, two in each spouse's name. All cheques were returned unpaid and a single, consolidated notice demanding payment of the cheque amounts within 15 days was served on the respondent. The respondent did …

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 appellant filed a complaint under Sections 138 and 141 of the Negotiable Instruments Act against Mis Western India Industries Ltd. and several of its directors, alleging joint liability for dishonoured cheques. The respondents contended they were not directors at the relevant time and that the complaint lacked spec…

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, Suryalakshmi Cotton Mills Ltd., and the respondent, Rajvir Industries Ltd., were parties to a demerger scheme after which blank cheques signed by the appellant’s Managing Director were handed to the respondents for business use. A dispute arose in 2005, leading the appellant to allege misuse of the chequ…

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 …

The Bank of Maharashtra honoured a cheque for Rs.6,500 presented by a customer of another bank, which was later discovered to have been chemically altered and actually payable for Rs.95.98. The bank’s branch did not possess an ultraviolet (UV) ray lamp, a device that could have revealed the forgery, and the lower court…

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 respondent filed a criminal complaint under Section 138 of the Negotiable Instruments Act, alleging that the appellant had issued two post‑dated cheques which were presented and returned unpaid with the endorsement "Payment countermanded by the drawer" and purportedly for insufficient funds. The appellant contended…

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…

The appellant, an authorized signatory of M/s. Intel Travels, issued a cheque on behalf of the company which was later dishonoured. The respondent filed a complaint under Section 138 of the Negotiable Instruments Act, 1881, but the company was not named as an accused. The High Court dismissed the appellant's petition t…

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 appellant, Smt. Keya Mukherjee, was charged under Section 138 of the Negotiable Instruments Act. Although she was granted exemption from personal attendance under Section 205 of the CrPC, the trial court refused to dispense with her personal examination under Section 313(1)(b) CrPC. After the trial court, a revisio…

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 appellant and respondent were partners in a firm with a joint bank account. The respondent allegedly withdrew Rs.12 lakh and later gave the appellant a post‑dated cheque of Rs.7 lakh as security under a police‑station compromise; the cheque was dishonoured and a complaint under Section 138 of the Negotiable Instrum…

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 appellant, along with two friends, advanced Rs 7.5 lakhs to the respondent about four years before the respondent issued a cheque on 30‑03‑1998, which was later dishonoured. The appellant filed a complaint under Section 138 of the Negotiable Instruments Act, 1881, and the magistrate issued summons. The respondent 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, a member of Ryot Seva Sahakari Bank, obtained a loan and issued a cheque that was later dishonoured, leading the bank to prosecute him under Section 138 of the Negotiable Instruments Act. The trial court convicted him, sentencing him to six months' imprisonment and ordering compensation; the conviction w…

Eicher Tractor Ltd. and others filed a petition under Section 482 of the Code of Criminal Procedure seeking to quash a criminal complaint filed by Harihar Singh under IPC sections 420, 468 and 471, alleging forgery. The petitioners argued that the complaint was a retaliatory "counter‑blast" to an earlier complaint they…

Industrial Chain Concern sued Indian Overseas Bank for Rs.26,383.49, alleging that the bank negligently allowed its manager, Sethuraman, to open a fictitious account in the firm's name, deposit stolen drafts and cheques, and collect the proceeds. The bank contended it acted in good faith, declined an overdraft facility…

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 Central Bank of India sued Saxons Farms for issuing three cheques that were returned unpaid due to insufficient funds. The bank sent two written notices within fifteen days, each demanding payment and warning of criminal action if the cheques were again dishonoured. After the cheques were re-presented and still bou…

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…

Himadri Chemicals Industries Ltd entered into a contract with Coal Tar Refining Co. for supply of extra‑hard pitch coal, with payment to be made by an irrevocable Letter of Credit (LC) opened by the appellant. The appellant’s bank found discrepancies in the documents and, after the appellant waived them, the parties ag…

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 appellant, Goaplast Pvt. Ltd., issued post‑dated cheques to the respondent and later instructed the drawee bank to stop payment before the dates on which the cheques became payable. The respondent filed a complaint under Section 138 of the Negotiable Instruments Act, 1881, which was dismissed by the lower courts on…

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, Narsingh Das Tapadia, lent Rs. 2,30,000 to the respondent, G.D. Partani, who issued a post‑dated cheque that was dishonoured on 6 October 1994. After serving a notice on 26 October 1994, the appellant filed a complaint under Section 138 of the Negotiable Instruments Act on 8 November 1994, which was retu…

The respondent filed a summary suit under Order XXXVII of the CPC for recovery of Rs.2.66 crore on account of dishonoured cheques. The appellants sought leave to defend and the trial judge granted conditional leave, directing them to deposit Rs.2 crore within two months or have the leave revoked. The High Court upheld …

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 filed complaints under section 138 of the Negotiable Instruments Act against a company and its officers, including the Deputy General Manager (first respondent), for dishonoured cheques. The trial court issued summons to all accused, but the Deputy General Manager sought quashing of the summons on the gro…

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…

The case involved six accused bank officials and businessmen charged with criminal conspiracy, cheating and corruption for allegedly abusing a cheque‑discounting facility of State Bank of India. The Special Judge and the High Court convicted all six under Sections 120‑B and 420 of the IPC and, for three of them, under …

Mis. Mediline India (P) Ltd obtained a loan of Rs.5,00,000 and issued two cheques which bounced for insufficient funds. A complaint under Section 138 of the Negotiable Instruments Act and Section 420 IPC was filed against two directors, Ashish Narula and Manish Arora, who were later convicted. While the case was pendin…

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 appellant‑defendant challenged the trial and Kerala High Court judgments that upheld a suit for recovery of Rs 1.5 lakhs on a promissory note (Ex A) executed for the transfer of 3 acres 44 cents of land and a building. The appellant contended that the note was purportedly for cash consideration, that the underlying…

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…