Personal Liability of Directors for Dishonor of Cheques - Free download as Word Doc (.doc), PDF File (.pdf), Text File (.txt) or read online for free. Event of dishonor of cheque valuing Rs.1.00 crore and above drawn on a particular account of the drawer on 4 occasions during the financial. Non-sufficient funds (NSF) is a term used in the banking industry to indicate that a cheque cannot be honored because insufficient funds are available in the account. A Quick Guide To Action on Bouncing of Cheque TablTable of Contentse of Contentse of Contents Description Page No. Cheque Bouncing – Recent Changes in Law 1. Cheque dishonoured: A step-by-step guide for legal recourse India Infoline News Service Personal Liability of Directors for Dishonor of Cheques. Section 1. 38 to 1. Chapter XVII) was introduced by an amendment to The Negotiable Instruments Act, 1. The Banking Public Financial Institutions and Negotiable Instrument Laws (Amendment) Act, 1. Thisamendment brought about a major change in the law relating to dishonor of chequesin India. Intention to cheat is now no longer a requirement in proving dishonor of cheques, whereas the only way prior to this amendment to prosecute an individual or body corporate for dishonor of cheque was by proving offence u/s 4. The Indian Penal Code, 1. The object was to inculcate faith in theefficacy of Banking Operations and credibility in transacting business on negotiableinstruments. Therefore, the paradigm shift in law from intention to presumption, andinspite of a lot of challenges ranging from Constitutionally validityto legislativecompetence, it has been held valid. The law relating to dishonor of cheques is enshrined in the Negotiable Instruments. Act, 1. 88. 1 (Act No. It is to be noted that a cheque is a Negotiable. Dishonor Of Cheque Pdf ReaderThis writing focuses on only the said specific aspect of Section 138 of the N.I. Instrumentand Sections 1. Act are the relevant provisions of law relating to dishonor of cheques. Furthermore, as has been noted bythe Hon’ble Supreme Court in terse words in the case of Shri Ishar Alloy Steels Ltd. Jayaswals NECO Ltd. S. N. Gupta, Dishonor of Cheques Liability – Civil & Criminal,(4thed., Universal Law Publishing. Co., New Delhi, 2. K. M. Mago,The Negotiable Instruments Act, 1. Unique Law Publishers,Ahmedabad, 2. R. Cas. 2. 15 (All) & V. A. 4. 87 (AP), Mayuri Pulse Mills v. Bom.)6. Section 6, Negotiable Instruments Act, 1. MANU/SC/0. 12. 1/2. Para 5 the Court observed: it has to be kept in mind that the law relating to Negotiable Instruments is the law of the commercial world which was enacted to facilitate theactivities in trade and commerce making provision of giving sanctity to the instruments of credit whichcould be deemed to be convertible into money and easily passable from one person to another.
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