(India) Ltd.
GSL means a better yarn
Welcomes
to all
PRESENTATION
ON:
SECTION
138
of the Negotiable
Amendments
of the Act
An Overview by:
Vijyant Nigam
Law Officer
Negotiable
Instruments
Act 1881
Came into force on 1st March, 1882
was
enacted to
define and to
bills of exchange
and cheques !
Promissory Note:
Section
A Promissory Note is an
instrument in writing containing
an unconditional undertaking
signed by the maker to pay a
certain sum of money only to, or
to the order of a certain person,
or to the bearer of the
instrument.
Bill of Exchange:
Section
Cheque:
Section
an offence.
1988 Amendment
towards achieving the goal on the
speedy justice, exemplary and
compensatory justice new
provisions with enlightened
jurisprudential foundation were
engrafted and put on the statute
book in the year 1988 in the form of
institution of
Chapter XVII
to the Negotiable Instruments Act,
1881
Chapter
XVII
1988 Amendment
DRAWER
BEWARE
XVII
Section 138,
139,
140 and 141
New sections in
the Chapter XVII
Section
138:
Basic Presumption of
Section 138:
Dishonour
of Cheque
is an
Offence
ingredients of
section 138 which shall have
Five basic
The drawer of the cheque fails to make the payment of the said
amount of money to the payee or to the holder in due course
within 15 days of the receipt of the said notice.
Section
139:
Section
140:
1988 amendment
Supreme Court
examined:
The provisions of sections
138 and 141 of the Act
and noted that mere
dishonour of a cheque
would not raise a cause of
Section 141:
The chapter XVII of the Act gained much
importance among companies due to the
section 141 because, this is the section,
through which the persons shall be held
liable for the conduct / offence committed
under the Act by a company.
The section also gave a reason to think twice
to the responsible person/s of a company
who makes commitment for and on behalf
of the company to pay someone through
negotiable instrument/s.
imprisonment
for a term up to
2 years or with
2002
Amendment
2002
Amendment
2002
Amendment
New sections
inserted through
the 2002
Section 143:
amendment:
New sections
inserted through
the 2002
amendment:
Section 144:
New sections
inserted through
the 2002
Section 145:
amendment:
New sections
inserted through
the 2002
amendment:
Section 146:
New sections
inserted through
the 2002
amendment:
Section 147:
Meaning of Compoundable
in 138 N. I. Act:
Weather a Non-Bailable
Warrant Can be issued for the
offence under section 138?