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Search Results Judgments > Act:Negotiable Instrument Act, 1881

Mar 22 2005

Steel Tubes of India Vs. Steel Authority of India

  • Decided on : 22-Mar-2005

Court : Madhya Pradesh

Reported in : I(2007)BC525; 2006CriLJ1988; 2006(1)MPLJ194

... in an electronic form as well as exempting an official nominee. Director from prosecution under the Negotiable Instruments Act, 1881. The other enactments i.e. the Bankers Books Evidence Act, 1891 and Information Technology Act, 2000 have also been amended by the Act No. 55 of 2002. The main aims and objects, for creation of Chapter XVII and further ... Act are aimed inter alia at early disposal of cases relating to dishonour of cheques, enhancing punishment for offenders, introducing electronic image of a truncated cheque and cheque in an electronic form as well as exempting an official nominee. Director from prosecution under the Negotiable Instruments Act, 1881. The other enactments i.e. the Bankers Books Evidence Act, 1891 and Information Technology Act ... Act, 2002 (Act No. 55 of 2004) with effect from 6-2-2003.7. The amendment in the Act are aimed inter alia at early disposal of cases relating to dishonour of cheques, enhancing punishment for offenders, introducing electronic image of a truncated cheque and cheque in an electronic form as well as exempting an official nominee. Director from prosecution under the Negotiable Instruments Act, 1881 ... it would be apt to consider the aims and object of the NI Act which are as follows:The Negotiable Instruments Act 1981 (for short 'the Act') amended by the Banking Financial Institutions and Negotiable Instrument Laws (Amendment) Act, 1988, wherein a new Chapter XVII was incorporated by Act No. 66 of 1983 with effect from 1-4-1989 for ...

Jan 04 2008

Shri Rajesh Kumar Gulati S/o Late Shri Surajbhan Gulati Vs. National A ...

  • Decided on : 04-Jan-2008

Court : Delhi

Reported in : 147(2008)DLT219

... negotiable instrument like a cheque tarried, thus defeating the very purpose of recognizing a negotiable instrument as a speedy vehicle of commerce. It was in that context that Chapter VII was inserted in the Negotiable Instruments Act by the Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988 (Act 66 of 1988) with effect from 1.4.1989. The said Act inserted Sections 138 and 142 in the Negotiable Instruments Act ... negotiable instruments like cheques issued, started losing their creditability by not being honoured on presentment. It was found that an action in the civil court for collection of the proceeds of a negotiable instrument like a cheque tarried, thus defeating the very purpose of recognizing a negotiable instrument as a speedy vehicle of commerce. It was in that context that Chapter VII was inserted in the Negotiable Instruments Act ... under Section 138 and 141 of the Negotiable Instrument Act (for short as Act) as well as summoning order, pending in the court of Metropolitan Magistrate, Karkardooma Court, Delhi.3. Respondent No. 1, herein, has filed complaints under Section 138 read with Section 141 of the Act against the present petitioner and ... of cheques by companies and commission of offences by companies under Section 138 of the Negotiable Instruments Act. Therein, it was provided that if the person committing an offence under Section 138 of the Act was a company, every person who at the time the offence was committed, was in ...

Aug 03 1965

Chhabiladas Mangaldas Vs. Luhar Kohan Arja

  • Decided on : 03-Aug-1965

Court : Gujarat

Reported in : AIR1967Guj7; (1965)GLR893

... Section 4 of the Negotiable Instrument Act, 1881, and if the instrument satisfies the requirement of that definition, the instrument must be held to be a promissory note quite irrespective of the fact whether it is a negotiable instrument or not. Their Lordships further pointed out that 'If the promissory note is not a negotiable instrument it may not be negotiable and the person to ... whether the instrument is a promissory note or not, regard must be had only to the definition of 'promissory note' contained in Section 4 of the Negotiable Instrument Act, 1881, and if the instrument satisfies the requirement of that definition, the instrument must be held to be a promissory note quite irrespective of the fact whether it is a negotiable instrument or not. ... promissory note are not negotiable instrument . In order that a promissory note may be a negotiable instrument, besides satisfying the ingredients of the definition of a 'promissory note' as given in Section 4, it must be 'payable either to order or to bearer'. It is true that under Explanation i to Section 13 of the negotiable instrument Act, 1881, if a ... negotiable, the primary test is to find out whether, in fact, the terms thereof satisfy the definition of a negotiable instrument as given in S. 13 of the Negotiable Instruments Act, 1881. If, having regard to the Explanation attached to that section, the document is found to be a promissory note which is made payable to a certain person, then the document would be an instrument ...

Apr 08 1987

International Marine Engineering Co. and another Vs. United Western Ba ...

  • Decided on : 08-Apr-1987

Court : Mumbai

Reported in : [1990]69CompCas632(Bom)

... but, however, lays down the parameters of section 118 of the Negotiable Instruments Act, in that it wasy that section 118 of the Negotiable Instrument Act, is a special rule of evidence applicable to any negotiable instrument and that the presumption is one of law and that the court shall presume, inter alia, that the negotiable instrument or the endorsement was made or endorsed for consideration. In effect, ... yet they were accepted on one single day, namely, Mr. Kakodkar, now relying upon sections 8 and 9 of the Negotiable Instruments Act, urges that the bank does not become a holder in due course.10. Section 8 of the Negotiable Instruments Act defines 'holder' to be the holder of a promissory note, bill of exchange or cheque to be a person entitled ... very many provisions of the Negotiable Instruments Act read wiht the statutory presumption as contained in section 118, they are bound by their action as acceptors and they cannot resile from the said transaction saying that the said bills were fictitiously made or that the then band manager knew that the bills were not meant for being negotiated. In any event, ... but it may comprise circumstantial evidence or presumptions of law or fact. Next is the decision, it again speaks of statutory presumption of consideration under section 118 of the Negotiable Instruments Act unless that presumption is rebutted by a promisor. The next reference is to the decision in Tarmahomed Haji Abdul Rehman v. Tyeb Ebrahim Bharamchari [1951] 49 BLR 219. ...

Aug 18 2003

Rambilas Dinaram Shivlal Vs. (Smt. Shantadevi Sitaram Agrawal,

  • Decided on : 18-Aug-2003

Court : Mumbai

Reported in : 2004(1)ALLMR248; II(2004)BC285; 2004(2)BomCR744

... this context it would appear from the judgment of the Appellate Court that the provisions of Negotiable Instrument Act, 1981 have been considered. It is necessary to reproduce relevant sections of N.I.Act which read thus :'Sec. 13. 'Negotiable Instrument' (1)A 'negotiable instrument' means a promissory note, bill of exchange or cheque payable either to order or to bearer. ... nature of negotiable instrument.12.Section 79 of the Negotiable Instrument Act, 1981 (hereinafter referred to as N.I.Act, for short) lays down that, when interest at a specified rate is expressly made payable, then interest shall be calculated at the rate specified. In the present case such rate of interest was not specified in the instrument i.e ... 1988.7.Further the Appellate Court has also recorded the finding that the plaintiff was a holder in due course, on considering the various provisions of Negotiable Instrument Act and consequently granted decree in favour of the plaintiff for the amount of Rs. 4510/with interest @ 6% p.a. by allowing the appeal partly. This ... Act :'Sec. 118. Presumptions as to negotiable instruments of consideration. Until the contrary is proved, the following presumptions shall be made -(a)of consideration - that every negotiable instrument was made or drawn for consideration, and that every such instrument, when it has been accepted endorsed, negotiated or transferred, was accepted, endorsed, negotiated or transferred for consideration;(b)as to date - that every negotiable instrument ...

Sep 19 2006

Purushottam Maniklal Gandhi Vs. Manohar K. Deshmukh and Anr.

  • Decided on : 19-Sep-2006

Court : Mumbai

Reported in : 2007(4)BomCR404

... Negotiable Instrument Act prescribes that when a person signs and delivers to another either wholly blank or incomplete negotiable instrument, he thereby gives prima facie authority to the holder thereof to make or complete the negotiable instrument for any amount not exceeding the amount covered by the stamp, which the instrument may bear. He further submitted that Section 118 of the Negotiable Instrument Act ... negotiable instrument, he thereby gives prima facie authority to the holder thereof to make or complete the negotiable instrument for any amount not exceeding the amount covered by the stamp, which the instrument may bear. He further submitted that Section 118 of the Negotiable Instrument Act provides that unless contrary is proved, it shall be presumed that every negotiable instrument ... negotiable instrument for any amount not exceeding the amount covered by the stamp, which the instrument may bear. He further submitted that Section 118 of the Negotiable Instrument Act provides that unless contrary is proved, it shall be presumed that every negotiable instrument was made or drawn for consideration and was made or drawn on the date which the instrument ...

Jul 05 1971

Raghunath Bhandary Vs. Seetharama Punja

  • Decided on : 05-Jul-1971

Court : Karnataka

Reported in : AIR1972Kant344; AIR1972Mys344

... Negotiable Instruments Act. 1881, defines promissory note as follows:--4. Promissory note.-- A 'promissorynote' is an instrument in writing (notbeing a bank-note or a currency-note)containing an unconditional undertaking.signed by the maker, to pay a certainsum of money only to, or to the orderof a certain person, or to the bearer ofthe instrument'.Therefore, the conditions laid down inSection 4 of the Negotiable ... of'or 'to the bearer' and that makes all thedifference and so it is not a promissorynote but a bond. Section 13 of the Negotiable Instruments Act reads thus:'13. 'Negotiable Instrument'.--- A 'negotiable instrument' means a promissory note, bill-of-exchange or cheque payable either to order or to bearer.Explanation (i)-- A promissory note, bill-of-exchange ... note but not containing a recital to be payable to order, and which becomes negotiable by reason of Section 13 Explanation (1) of Negotiable Instruments Act, though attested by witness, should be treated as a promissory note for purpose of Stamp Act also.*****Illustrations cannot modify the language of a section or curtail or expand the ambit ... instrument of its character of a promissory note and the payee can certainly sue on the promissory note'.8. In Kadorilal v. Sukhlal Sajan Singh, : AIR1968MP4 . it was held as follows:'A document, essentially a promissory note but not containing a recital to be payable to order, and which becomes negotiable by reason of Section 13 Explanation (1) of Negotiable Instruments Act ...

Sep 23 1982

Mehrunnisa Begum and Ors. Vs. Shaik Chand Bi and Ors.

  • Decided on : 23-Sep-1982

Court : Andhra Pradesh

Reported in : [1985]58CompCas197(AP)

... reasonable means of inquiry into the title of the partner who endorsed the instrument in his favour and that there was sufficient cause for him to believe that no defect existed in the title of that partner.' 19. Dealing with a case arising under s. 9 of the Negotiable Instruments Act, 1881, Hegde J. of the Mysore High Court in Paschal Nazereth v. Denis Lobo ... case is whether the plaintiff is a holder in due course of the suit promissory note. In order to determine the same, the provisions enacted under s. 9 of the Negotiable Instruments Act, 1881, will have to be noticed. Section 9 reads : 'Holder in due course' means any person who for consideration became the possessor of a promissory note, bill of exchange or cheque ... in favour of the respondent. 14. The learned counsel for the respondents contended that under s. 118(g) of the Negotiable Instruments Act (Act 26 of 1881), which reads : 'that the holder of a negotiable instrument is a holder in due course : Provided that, where the instrument has been obtained from its lawful owner, or from any person in lawful custody thereof, by means of an offence or ... .... The rule as laid down in section 9 of the Negotiable Instruments Act which defines 'holder in due course' is stricter than the rule of English law on the subject and a payee or endorsee of a negotiable instrument can, under our law, prefer a claim to be a holder in due course of the instrument only if he obtained the same without having sufficient cause ...

Feb 28 2007

Manishbhai Bharatbhai Shah Vs. The State of Gujarat and 4 Ors.

  • Decided on : 28-Feb-2007

Court : Gujarat

Reported in : (2008)1GLR392

... lenders Act 1946 except for the purpose of Section 23 and 25.16. Therefore it raises a question as to whether a cheque in question at exhibit 26 was a negotiable instrument so as to be excluded from the provisions the Bombay Money lenders Act 1946.The Section 13 of the Negotiable Instrument Act 1881 is extracted hereunder. Section 13. S Negitiable instrument (1) A S negoitiable instrument ... 2 of the Bombay Money lenders Act 1946 that an advance made on the basis of the negotiable instrument, as defined in the Negotiable Instruments Act 1881 other than promisory note is not a loan' within the meaning of term Sloan defined in the Bombay Money lenders Act 1946 so as to attract the applicability of the Bombay Money Lenders Act 1946. This Court has in case ... Money-lenders Act 1946 as it clearly provides in Clause (f) of Sub-section 9 of Section 2 of the Bombay Money lenders Act 1946 that an advance made on the basis of the negotiable instrument, as defined in the Negotiable Instruments Act 1881 other than promisory note is not a loan' within the meaning of term Sloan defined in the Bombay Money lenders Act 1946 so ... Act. It would be expedient to set out the extract of the relevant provisions of the act.Section 2. In this Act, unless there is anything repugnant in the subject or context,-(9) 'Loan' means an advance at interest whether of money or in kind, but does not include (f) an advance made on the basis of a negotiable instrument as defined in the Negotiable Instrument Act 1881 ...

Mar 23 2007

Krishan Gupta and Anr. Vs. State of West Bengal and Anr.

  • Decided on : 23-Mar-2007

Court : Kolkata

Reported in : 2007CriLJ2502

... on a non est account, the same shall not attract the penal consequences of Section 138 of the Negotiable Instruments Act, if accepted would completely frustrate the very object of insertion the said provisions by Banking, Public Financial Institutions and Negotiable Instrument Law (Amendment) Act, 1988. In any event, this is not a case of drawing of a cheque on a defunct ... the same stands dismissed. The order of conviction of the appellant under Section 138 of the Negotiable Instruments Act stands confirmed.12. Last but not least, in the instant case I found the conviction of the appellant under Section 138 of the Negotiable Instruments Act being upheld in appeal and order of sentence of fine being set aside there is nothing except ... the accused from his criminal liability for the offence committed under Section 138 of the Negotiable Instruments Act.The submissions of Mr. Bagchi that the cheque was drawn on an account which already stands closed cannot attract the mischief of Section 138 of the Negotiable Instruments Act is of no merit. In the case of NEPC Micon Ltd. and Ors. v. Magma ... of the appellant under Section 138 of the Negotiable Instruments Act being upheld in appeal and order of sentence of fine being set aside there is nothing except compensation in consequences of conviction. The conviction entails imposition of sentence unless imposition of sentence is kept in abeyance by operation of law. The Negotiable Instruments Act provides for sentence of imprisonment and sentence ...

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