Section 8 of negotiable instruments act legal helpline. The negotiable instruments act 1881 cheque dishonour. Complaint us 8 of ni act download format of complaint. The negotiable instruments act, 1881 act deals with negotiable instruments, such as promissory notes, bills of exchange, cheques etc. Section 8 of negotiable instruments act, reflects the anxiety of the legislature to usher in a new healthy commercial morality through the instrumentality of the penal law. Section 9 of negotiable instruments act, 1881 talks about the liability of a person who is issuing a cheque which has been dishonored.
The negotiable instruments act, 1881, provides for three instruments namely promissory notes, bills of exchange and cheques. This article talks about, section 8 of negotiable instruments act. An offence under section 8 has been created to protect the essence of the act and to honest people should not be harassed. The word negotiable means transferable with respect to consideration and instrument is a written document which creates a right in favour of a person. It has 147 sections and 17 chapters section 8 to 142 were added in 1988 on 1st april, 1989 and section 143 to 147 were added during december 2002. Scope of section 8 of negotiable instrument act,1881. As per the prevailing laws in india, under the indian evidence act, every person until proven guilty is presumed to be innocent. Mar 18, 2020 this article talks about, section 8 of negotiable instruments act. Section 8 negotiable instruments act, 1881 an in depth. Section 4 of the negotiable instruments act 1881 defines the promissory note, a promissory note is an instrument in writing note being a banknote or a currency note containing an unconditional undertaking, signed by the maker, to pay a certain sum of money to or to the order of a certain person, or to the bearer of the instruments. Section 8 of negotiable instruments act is an important provision pertaining to the matter of cheque bouncing. Section 8 of the negotiable instruments act, 1881 the term negotiable means transfer by endorsement or delivery and the term instrument means any legal document in writing, which is created in favour of any person.
Critical analysis of section8 of negotiable instruments act. Every negotiable instrument shall be governed by the provisions of this act, and no usage or custom at variance with any such provision shall apply to any such instrument. Section 8 of negotiable instruments act legal helpline india. Negotiable instruments act, 1881 the lawyers and jurists.
The central government has notified amendment to one of the most essential legislation i. Section 8 negotiable instruments act, 1881 lawyerquick. Whether closing of the bank account with the mala fide intention of not honouring the liabilitydebt will be covered under section 8 of the negotiable instruments act, 1881. A complaint against an offence under section 8 of the negotiable instrument act, 1881. Section 9 of negotiable instruments act, 1881 legodesk. Mcq on negotiable instruments act with answers in pdf.
Local extent, saving of usages relating to hundis, etc. Section 8 of negotiable instruments act, 1881 criminal. In one of our articles published in septemberamendments to the negotiable instruments act, we discussed the amendments that were brought to the negotiable instruments act, 1881 act with an intention of amending the law related to promissory notes, bills of exchange and cheques. Section 141 of the negotiable instruments act, if the offense under section 8 is committed by a company, the persons who were in charge of, and responsible for the conduct of the daily affairs of the company, at the time the offense was committed, will be considered to be guilty of the offense. Summon, prosecute and punish the accused and also direct the accused to pay the amount as double to the amount covered under the said dishonored cheques, under the provisions of section 8 read with section 142 of the negotiable instruments act, 1881 as amended by the negotiable instrument laws amended and miscellaneous provisions act, 2002. Negotiable instrument act, 1881 deals with all the provisions of the instruments which are a crucial part of the modernday commercial transactions due to development in the banking, trading and other commercial sectors. Apr 24, 20 section 8 negotiable instruments act 1881 section 8 negotiable instruments act as it is at present after coming into force of the negotiable instruments amendment and miscellaneous provisions act, 2002.
On 1st march, 1882 the negotiable instrument act was passed during 1881 which came into force in india. The observation of nclat is that, the proceedings under section 8 of the negotiable instruments act, 1881 are criminal in nature and therefore, moratorium cannot be made applicable to such proceedings. For the purposes of this section, debt or other liability means a legally enforceable debt or other liability. 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. Nature of proceedings under section 8 of the negotiable instruments act, 1881. Section 148 of negotiable instruments act 1881 act apply retrospectively to offence us 8 even where criminal complaints were filed prior to amendment act prior to 01. A negotiable instrument is one, therefore, which when transferred by delivery or by endorsement and delivery, passes to the transferee a good title to payment according to its tenor and irrespective of.
Negotiable instruments recognised by usage or custom are. Section 8142 of the negotiable instruments act, 1881. Mar 15, 2020 section 8 of negotiable instrument act insufficiency of funds in the account from which cheque is drawn constitutes the offence of dishonour of cheque under section 8. For the purposes of this section, debt or other liability. The ordinance provides for determination of territorial jurisdiction of courts for trying cases relating to offence of dishonour of cheques under section 8 of the negotiable instruments act, 1881 ni act. These are extremely important for bank exams banking awareness part. Section 148 of the negotiable instruments act, 1881 has. Calculation of the date of maturity of a billofexchange.
The president of india has promulgated the negotiable instruments amendment ordinance, 2015 no. Until the contrary is proved, the following presumptions shall be made. The objective of sec 8 of ni act is to promote the efficiency of banking operations and to ensure credibility in transacting business through cheques is mentioned in the case law modi cements ltd. Important case laws citedrelied upon by the parties. Whether the payee or holder of a cheque can initiate prosecution for an offence under section 8 of the negotiable instruments act, 1881 for its dishonour for second time, if he had not initiated any action on the earlier cause of action. Notice under section 8 of negotiable instrument act, 1881. The negotiable instruments act 1881 part 4 by advocate sanyog vyas duration. Negotiable instruments act, 1881 bare acts law library. Defense which may not be allowed in any prosecution under section 8. The object of sections 8 142 of the negotiable instruments act, 1881 is to promote the efficacy of banking operations and to ensure credibility in transacting business through cheques. Section 8 of the negotiable instrument act 1881 my friend issued a cheque for discharge of his liability but it is dishonoured due to insufficient fund. Today we are sharing the most important expected mcq on negotiable instruments act with answers. Section 8 negotiable instruments act 1881 section 8 negotiable instruments act as it is at present after coming into force of the negotiable instruments amendment and miscellaneous provisions act, 2002. Sep 23, 2016 9 videos play all the negotiable instruments act 1881 series by advocate sanyog vyas sanyog vyas law classes discharge from liabilities sections 82 to 89 negotiable instruments act 1881.
The first section in this aspect to be analyzed, would be s. An analytical study of the provisions relating to dishonour of cheques under chapter xvii of the negotiable instrument act, 1881 by anjana dave and dr. Chapter xvii containing sections 8 to 142 was introduced with the aim of inculcating confidence in the efficacy of banking operations and giving credibility to negotiable instruments employed in business. Section 8 is an fundamental section in terms dealing with dishonour of cheques. Negotiable instruments act most litigated issue on.
May 18, 2019 section 8 of negotiable instruments act explained in details with case law for better understanding of a common man. Dec 20, 2017 one of the main ingredients of the offence of dishonour of cheque under section 8 of the negotiable instruments act, 1881, is that the cheque which is dishonoured must have been given for the discharge, in whole or in part, of any debt or other liability. That our client is a reputed businessman and honourable person in his area. Aug 23, 2018 nature of proceedings under section 8 of the negotiable instruments act, 1881. Section 118 in the negotiable instruments act, 1881. Sections 8 and 141 of the negotiable instruments act, 1881. According to section 1 of the negotiable instruments act, 1881 ni act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. The article discusses the concept of section 8 142 of the negotiable instruments act, 1881.
Jun 19, 2018 section 8 of negotiable instruments act, 1881. In the negotiable instruments act, 1881 hereinafter referred to as the principal act, after section 143, the following section shall be inserted, namely. The income tax department never asks for your pin numbers, passwords or similar access information for credit cards, banks or other financial accounts through email the income tax department appeals to taxpayers not to respond to such emails and not to share information relating to their credit card, bank and other financial accounts. The proposed amendments to the negotiable instruments act, 1881 the ni act are focused on clarifying the jurisdiction related issues for filing cases for offence committed under section 8 of the ni act. Jul 15, 2019 therefore, if amended section 148 of the negotiable instruments act, 1881 is purposively interpreted in such a manner, it would serve the objects and reasons of not only amendment in section 148 of the negotiable instruments act, 1881 but also section 8 of the negotiable instruments act, 1881. Section 8 creates statutory offence in the matter of dishonor of cheques on the ground of insufficiency of funds in the account maintained by a person with the banker and exceeds the amount arranged to be paid from that account by an agreement made with that bank as mentioned in the act. Essentially the liability of the parties to a negotiable instrument has it statutory provisions under sections 30, 32 and 35 of the negotiable instruments act 1881. Sep 28, 2017 the apex court in a recent judgement held that any failure to include the company as an accused in the complaint, filed under section 8 of the negotiable instruments act, 1881 of dishonour of a cheque issued by a company, would be fatal to the prosecution of such company even if the complaint filed against the signatory of the cheque has been. This act may be called the negotiable instruments act, 1881. The apex court in a recent judgement held that any failure to include the company as an accused in the complaint, filed under section 8 of the negotiable instruments act, 1881 of dishonour of a cheque issued by a company, would be fatal to the prosecution of such company even if the complaint filed against the signatory of the cheque has been. Government notifies negotiable instrument amendment act, 2018. Therefore, if amended section 148 of the negotiable instruments act, 1881 is purposively interpreted in such a manner, it would serve the objects and reasons of not only amendment in section 148 of the negotiable instruments act, 1881 but also section 8 of the negotiable instruments act, 1881.
We have given section, definition related multiple choice questions on negotiable instruments act 1881. Jan 16, 2020 section 9 of negotiable instruments act, 1881. Objective of section 8 of negotiable instrument act, 1881. The act provides for liabilities and duties of both the drawer and drawee. Section of the negotiable instrument act 1881 which has defined negotiable instrument has not made any distinction between crossed cheque account payee or postdated cheque given as a security for repayment of the loan or any other cheque issued by the drawer for encashment currently or cheque of other kinds. I want to know that when it can be said that offence under section 8 has committed. The clarification of jurisdictional issues may be desirable from the equity point of view as this would be in the interests of the. Negotiable instruments act most litigated issue on section 8. According to section of the negotiable instruments act, a negotiable instrument means a promissory note, bill of exchange or cheque payable either to order or to bearer. As most of you know the huge number of cases filed under the negotiable instrument act, 1881 mainly fall under section 8 of the act and many lawyers have skill on this particular section but surprisingly they have no idea about other sections of the said act, today i my initiative is to writing up for those newcomers to make them understand. The negotiable instruments amendment act, 2006 act no. Section 8 dishonour of cheque for insufficiency, etc. The negotiable instruments act 1881 part 1 by advocate sanyog.
It states that the payee or holder in due course of the cheque as the case may be, makes a demand for the payment of the said amount of money by giving a notice in writing, to the drawer of cheque, within thirty days of the receipt of information by him. Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the. Notice under section 8 of negotiable instrument act, 1881 for dishonor of cheque for an amount of bdt 50,000. The act has been amended time and again to ensure and enhance trust in negotiable instruments. Instrument negotiable till payment or satisfaction. Sep 12, 2017 on 1st march, 1882 the negotiable instrument act was passed during 1881 which came into force in india. Section 118 in the negotiable instruments act, 1881 118 presumptions as to negotiable instruments. Section 8 b of the negotiable instruments act, 1881 provides for the notice of dishonour. Aug, 2014 section 8 dishonour of cheque for insufficiency, etc. Section 8 negotiable instruments act as it is at present after coming into force of the negotiable instruments amendment and miscellaneous provisions act, 2002. Dear sir, we act on behalf of our client above named who has instructed us to serve upon you this notice under following terms and conditions. It is a classic example where, as part of an attempt to evolve a healthy norm of commercial behavior, the principal of social engineering through the instrumentality of. Notice under section 8 of negotiable instrument act.
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