The chief object behind negotiable instruments act was to legalise the system under which negotiableinstruments pass from one hand to other in negotiationslike ordinary goods. The format can be also downloaded for free in pdf version from the link provided after the format. Notice under section 8 should be sent through registered ad post only. Learned counsel, therefore, submits that the proceedings under section 8 of the negotiable instruments act against the corporatedebtor could not have. Section of the negotiable instruments act states that a negotiable instrument is a promissory note, bill of exchange or a cheque payable either to order or to bearer. The ingredients required for complying with section 8 as defined in kusum ignots. Important judgements i negotiable instrument act, 1881. It is sometimes said that cases arising under section 8 of the act are really civil cases masquerading as criminal cases.
A change in law means msmes have greater power in cheque. The law regarding the penalties in case of dishonour of cheques is contained in the negotiable instrument act, 1881 for short the ni act. Section 8 of negotiable instruments act legal helpline. Characteristic features of negotiable instruments and presumptions under section 118 and section 119 of the negotiable instruments act, 1881. Mcqs on negotiable instruments act with answers speakhr. Act has prescribed an outer limit of one month for filing of a complaint from the date the cause of action rises. In criminal law, commission of offence is one thing and prosecution is quite another. According to section 1 of the negotiable instruments act, 1881ni act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. He further submits that the statutory notice under section 8 of the negotiable instruments act was issued on 21. Negotiable instrument act overview with supreme court. Negotiable instruments act, 1881 this pdf is very big. The law relating to the negotiable instruments is the law of commercial.
These are extremely important for bank exams banking awareness part. The act has been amended time and again to ensure and enhance trust in negotiable instruments. Section 8 negotiable instruments act, 1881 an in depth analysis. By jivesh chandrayan indian courts are riddled with the humongous problem of pending cases. Here you can find the mcqs on negotiable instruments act with answers. The court observed that the act was enacted and section 8 thereof incorporated with a specified object of making a special provision by incorporating a strict liability so far as the cheque as a negotiable instrument is concerned. In the recent amendments in negotiable instruments act, section 143a was inserted which provides for interim compensation in case of an offense under section 8. I have created it to help law students go to a section quickly. While section 8 of the act specifies a strong criminal remedy in relation to the dishonour of cheques, the rebuttable presumption under section 9 is a device. For the purposes of this section, debt or other liability means a. How to cross examine in court during the trial of cheque bounce case under section 8 of n. Negotiable instruments act pdf download 2019 writinglaw. In that case, the drawer without prejudice to the other provisions of the said act, shall be. After issuing a cheque, if the account is closed by the drawer and due to this reason, the cheque is dishonoured, an offence of cheque bouncing under section 8 of negotiable instruments act, 1881, may still be attracted, provided other ingredients of this offence.
In this case, the supreme court has changed the basic criteria under section 8 of negotiable instruments act which is to prosecute a person who had presented the cheque which had been returned due to insufficiency of funds or if the amount exceeds the amount in the bank of the payer. Cheque dishonour laws in bangladesh l l explanation under. Section 8 of negotiable instruments act is an important provision pertaining to the matter of cheque bouncing. Pdf negotiable instrument act and cheque used as collateral. Mcq on negotiable instruments act with answers in pdf. As per the provisions of section 142 of the negotiable instruments act, a complaint can be made about the offence of cheque bounce under section 8 of the act, within one month of the expiry of 15 days period from receipt of above notice by the drawer of the cheque if no payment is made within those 15 days. The avowed object of chapter xvii of the act is to encourage the culture of use of cheques and enhance the credibility of the instrument.
This article on dishonour of cheque section 8 of the negotiable instruments act gives a comprehensive overview about all aspects of cheque bouncing and cheque dishonour as per laws in india. Patel banking law and negotiable instruments act buy here 3. Get latest news, breaking news about section 8 ni act. Whether section 8 of negotiable instruments act, 1881, is attracted. Cheques minimize the risk of carrying cash and ensure safety in making payment. An act to define and amend the law relating to promissory notes, bills of exchange and cheques. Source of income of complainant has to be proved in 8 ni. Ni act negotiable instrument act cases in india hello. But doing so by scrolling in this long pdf is hard. The negotiable instruments act, 1881, provides for three instruments namely promissory notes, bills of exchange and cheques.
The main objective of incorporating section 8 in the act by amendment in 1988 was to inculcate faith in the efficacy of banking operations and credibility in transacting business on negotiable instruments to prevent issuance of dishonest cheques by the drawer. We provide all services of filing cases under section 8 of the negotiable instruments with our team of experts. The case under section 8 of the negotiable instruments should be filed within 15 days of receipt of the date of issuance of the notice under section 8. Read all latest updates on and about section 8 ni act. In india for cases related to cheque bounce, provisions are given under section 8 of negotiable instrument act, 1881. Landmark supreme court judgment on sec 8 of negotiable.
Section 8 of negotiable instruments act explained in details with case law for better understanding of a common man. Negotiable instruments act in favour of holder of the cheque. Negotiable instruments like cheques, promissory notes, bill of exchange etc. Whereas it is expedient to define and amend the law relating to, promissory notes, bills of exchange and cheques. Complaint us 8 of ni act download format of complaint. Section 8142 of the negotiable instruments act, 1881. An act further to amend the negotiable instruments act, 1881. Surendra malik and sudeep malik supreme court on dishonour of cheques and negotiable instruments in 2 volumesbuy here 4. Pdf on jul 19, 20, m s siddiqui and others published negotiable. As per the 2th report of the law commission almost 20 per cent of the pending litigation pertains only to cheque dishonor disputes under section 8 of the negotiable instruments act, 1881.
So, to read any section just use the initial blue index pages of this pdf. Important case laws on negotiable instruments act 1881. A cheque is a bill of exchange drawn on a specified banker. When the cheque sent to the bank for making payment is bounced, the payee sends a legal cheque bounce notice to the drawer to make the payment. Notice format under section 8 negotiable instruments act. Legal notice under section 8 format download against return of cheque, to be served to the drawer before filing criminal complaint us 8 of of negotiable. We have given section, definition related multiple choice questions on negotiable instruments act 1881. Law governing liability of maker, acceptor or indorser of foreign instrument. Source of income of complainant has to be proved in 8 ni act cases.
The negotiableinstruments act 1881 came into being as an act to defineand amend the law relatingto promissory notes, bill of exchange and cheques. It takes me a lot of time and energy to create these pdfs. The prosecution and recovery mechanism under sections 8 to 142 of the act was introduced by the. Section 9 of negotiable instruments act, 1881 legodesk. Thus the supreme court referred to the object of section 8 of the act in present case. The substantial law for the offences committed under the ni act is contained in section 8 of ni act and the procedural law can be noted from other sections. Section 9 of the act is an example of a reverse onus clause that has been included in furtherance of the legislative objective of improving the credibility of negotiable instruments. Maliks negotiable instruments act, 1881 with exhaustive notes on dishonour of cheques buy here. Impact of closing of account on cheque bouncing case. The supreme court has observed that a complainant in a cheque bounce case is bound to explain his financial capacity, when the same is questioned by the accused, by. The word negotiable means transferable with respect to consideration and instrument is a written document which creates a right in favour of a person. Parliament with the aim to restore the credibility on the cheques to be used as a trustworthy medium inserted section 8 and 9. Today we are sharing the most important expected mcq on negotiable instruments act with answers.
The court in this case further held that even though a vicarious liability is fastened on a person connected with a company under section 141 unless a clear case is spelled out in the complaint against the person sought to be made liable, such person could not be made liable. In this case, it was held that dishonour of a negotiable instrument whether based on a second or any successive presentation of a cheque for the encashment of it would be regarded as dishonour within the meaning of section 8 of the negotiable instruments act, 1881. Sections 8 and 141 of the negotiable instruments act. Format notice of cheque dishonour this is a form of notice under section 8 of negotiable instrument act, 1881 for dishonour of cheque under certain grounds. Government has amended the negotiable instruments act, 1881 which. This multiple questions on negotiable instruments act 1881 can be considered for mcqs on business law or mcqs on legal aspect of business for mba, bba, b.
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