Negotiable Instrument Act (Cheque) – CaseLaws

Section 148 – Can the Appellate Court suspend the sentence of an accused convicted under Section 138 NI Act without imposing the condition of 20% deposit as stipulated under Section 148 NI Act? The view that the deposit of minimum 20% amount is an absolute rule which does not accommodate any exception is erroneous – Normally, the Appellate Court will be justified in imposing the condition of deposit as provided in Section 148. However, in a case where the Appellate Court is satisfied that the condition of deposit of 20% will be unjust or imposing such a condition will amount to deprivation of the right of appeal of the appellant, exception can be made for the reasons specifically recorded. Jamboo Bhandari vs MP State Industrial Development Corporation Ltd 2023 INSC 822

Section 141 NI Act- Dishonoured cheque was issued by Director on behalf of company. Cheque bounce complaint was filed under Section 138 Negotiable Instruments Act and only this director is the sole accused. Can such a complaint be entertained ? A criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 cannot be proceeded with without making the company as accused in the caseRA Samy vs C RavichandranCrA 2732/2023

Section 138,139 – Time Barred cheque – If the question as to whether the debt or liability being barred by limitation was an issue to be considered in such proceedings, the same is to be decided based on the evidence to be adduced by the parties since the question of limitation is a mixed question of law and fact. It is only in cases wherein an amount which is out and out non-recoverable, towards which a cheque is issued, dishonoured and for recovery of which a criminal action is initiated, the question of threshold jurisdiction will arise. In such cases, the Court exercising jurisdiction under Section 482 CrPC will be justified in interfering but not otherwise – Entertaining a petition under Section 482 CrPC to quash the proceedings at the stage earlier to the evidence would not be justified (Para 10) – K. Hymavathi vs State of Andhra Pradesh 2023 INSC 811