Advocates Club

Tagged: Section – 138

A collection of all the Judgements of Section – 138.

Cheque Bounce

NO ROOM FOR ERROR: SUPREME COURT INVALIDATES CHEQUE BOUNCE NOTICE ON ‘AMOUNT MISMATCH’ AND QUASHES CRIMINAL COMPLAINT

The Hon’ble Supreme Court of India in its recent judgment dated 19.09.2025 titled “KAVERI PLASTICS Vs MAHDOOM BAWA BAHRUDEEN NOORUL” dealt with a crucial issue regarding the validity of Notice U/s 138 of the Negotiable Instruments Act, 1881 if the amount demanded in the Notice differs from the amount for which the cheque was issued and whether such discrepancy can be...

Cheque Bounce / Civil Law

Applicability of Limitation Law during the period of COVID-19 pandemic and Mode of Effective Service

The Hon’ble Supreme Court while dealing with the issue of limitation in lieu of the COVID -19 pandemic, suo moto took cognizance of the difficulties to be faced by the litigants across the country in filing their petitions/applications/suits/ appeals/all other proceedings within the period of limitation and therefore through its order dated 23.03.2020 extended the period of limitation in all...

Cheque Bounce

SUPREME COURT OF INDIA – WHETHER THE COURT HAS POWER TO CLOSE THE PROCEEDINGS OF A CHEQUE BOUNCE CASE WITHOUT THE CONSENT OF THE COMPLAINANT?

Yes the Court has the power to close the proceedings of a cheque bounce case without the consent of the Complainant. The question for consideration before the Supreme Court of India in M/s Meters and Instruments Private Limited & Anr. versus Kanchan Mehta was that if the accused is willing to deposit the cheque amount can the proceedings be closed...

Cheque Bounce / Criminal Law

SUPREME COURT OF INDIA – THE COMPENSATION IS STILL RECOVERABLE IN A CHEQUE BOUNCE CASE BY THE COMPLAINANT EVEN THOUGH THE ACCUSED HAS SERVED THE DEFAULT SENTENCE

The question that arose before the Hon’ble Supreme Court of India was that what happens to the money receivable by the Complainant in the form of Compensation when the Accused undergoes jail term, in default of the compensation, under such circumstances is the Compensation still recoverable by the Complainant? The Hon’ble Supreme Court observes that that the gravity of offences...

Cheque Bounce

If the signatures on the Cheques are admitted by the accused then the contentions raised by the accused that the amount and name of the drawee were not filled in by the accused does not have any force in the eyes of law

If the signatures on the cheques are admitted by the accused, it matters little if the name of the payee, date and amount are filled up at a subsequent point in time and therefore the contention raised by the accused that the amount and name of the Drawee were not filled in by the accused, does not have any force...

Cheque Bounce

SUPREME COURT OF INDIA – WHETHER A POST-DATED CHEQUE GIVEN AS “SECURITY” AND MENTIONED IN THE LOAN AGREEMENT IS COVERED BY SECTION – 138 OF THE NEGOTIABLE INSTRUMENTS ACT, 1881 OR NOT?

Supreme Court of India Date of Judgement: 19.09.2016 Whether the dishonour of a post-dated cheque given for repayment of loan installment which is also described as “security” in the loan agreement is covered by Section 138 of the Negotiable Instruments Act, 1881 or not? The agreement recorded that post-dated cheques towards payment of installment of loan (principal and interest) were...

Cheque Bounce

DELHI HIGH COURT – SECURITY CHEQUE – THE SECURITY CHEQUE MAY BE ENFORCED IN THE EVENT OF FAILURE OF THE DEBTOR TO PAY THE DEBT OR DISCHARGE OTHER LIABILITY ON THE DUE DATE

Delhi High Court Date of Judgement: 14.05.2015 It makes no difference whether, or not, there is an express understanding between the parties that the security may be enforced in the event of failure of the debtor to pay the debt or discharge other liability on the due date. Even if there is no such express agreement, the mere fact that the...

Cheque Bounce

SUPREME COURT OF INDIA – NEGOTIABLE INSTRUMENTS ACT SECTION 138 – COMPLAINT CAN BE FILED EVEN AFTER SECOND NOTICE

Supreme Court of India Date of Judgement: 10.09.2013 Negotiable Instruments Act Section 138 – Complaint can be Filed Even after Second Notice This matter was referred before the larger Bench by order dated 25th March, 2009. The question referred to the larger Bench was : “whether the action of the appellant was time-barred under Section 138(b) of the Negotiable Instruments Act or not...

Cheque Bounce

SUPREME COURT OF INDIA – NEGOTIABLE INSTRUMENTS ACT SECTION 138 -WHETHER THE COMPLAINT FILED IS WITHIN LIMITATION OR NOT

Supreme Court of India Date of Judgement: 26.08.2013 Whether the complaint filed under Section 138 of the NI Act is within limitation or not…… from the date on which the cause of action arose under clause (c) of the proviso to Section 138 of the NI Act? …. Whether for calculating the period of one month …. under Section 142(b),...