What is Section 138 NI Act?

i) An offence under Section 138 of the Negotiable Instruments Act, 1881 is committed no sooner a cheque drawn by accused on an account being maintained by him in a bank for discharge of debt/liability is returned unpaid for insufficiency of funds or for the reason that the amount exceeds the arrangement made with the …

Which of the following courts has the jurisdiction for trying an offence punishable under section 138?

On the other hand if the payment is not made then the complainant is to file a criminal case process under Section 138 of the Act, against the drawer within 30 days from the date of expiry of 15 days specified the notice,with the concerned magistrate court within the jurisdiction.

Which of the following court has the jurisdiction for trying an offence punishable under Section 138 of the Negotiable Instruments Act 1881?

High Court of Andhra Pradesh held that the Court within whose jurisdiction the cheque is given, or where the information of dishonour is received or where the office of the payee is situate, will have jurisdiction to try the offence.

What is Section 138 for cheque bouncing?

Section 138 Of The Negotiable Instruments Act It provides that where a person draws a cheque on an account maintained by him for the payment of money to another person, and it is returned by the bank unpaid because of insufficient funds to honour the cheque, the drawer of the cheque commits an offence.

What is the jurisdiction of cheque bounce case?

Bhaskaran case[21], Dashrath Rupsingh[22] observed that the moment when cheque is dishonoured by the drawee bank (bank of the drawer), offence under Section 138 gets attracted, hence as the offence is committed at the place of drawee bank, the court situated therein will have jurisdiction.

Is 138 NI Act civil or criminal?

The Section 138 of the Negotiable Instruments Act 1881, treated cheque bounce as a civil wrong, until 1988, when it was brought under ‘criminal offence’, with a prison term of up to two years, while leaving the right to approach a civil court unaffected.

Is Section 138 A criminal offence?

Is NI Act civil or criminal?

The spirit of the NI Act is that it is predominantly a civil law but to ensure that the drawer discharges his liability, a tint of criminal law has been added to it, which makes it quasi-criminal law. Failure on the part of the drawer to pay the cheque amount may expose him to penal provision provided under the Act.

Is cheque bounce a criminal case?

If a cheque is bounced citing insufficient funds in bank account, it is a criminal offence and the payee – the person or the bank – can file a complaint under Section 138 of the Negotiable Instruments Act.

Is 138 NI Act bailable?

The offence under Sec. 138, Negotiable Instruments Act is punishable with imprisonment for two years, and therefore the offence is bailable and hence anticipatory bail cannot be granted.

When cheque amount is more than actual debt offence US 138 of NI Act is not made out?

“For the purposes of Section 138 of the Negotiable Instruments Act, 1881, the cheque should be towards the discharge of either the whole debt or part of the debt. If the cheque is for more than the amount of the debt due, Section 138 cannot be attracted.”

Is cheque bounce a civil case?