Category Archives: Negotiable Instruments Act

What is Promissory note ?

Section – 4, NEGOTIABLE INSTRUMENTS ACT, 1881 ” Promissory note “ 4. A ” promissory note ” is an instrument in writing (not being a bank-note or a currency-note) 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… Read More »

What is Bill of exchange ?

Section – 5, NEGOTIABLE INSTRUMENTS ACT, 1881 ” Bill of exchange “ 5. A ” bill of exchange ” is an instrument in writing containing an unconditional order, signed by the maker, directing a certain person to pay a certain sum of money only to, or to the order of, a certain person or to… Read More »

No need to send individual notices to Directors u/s 138 of Negotiable Instruments Act

Held In our view, Section 138 of the Act does not admit of any necessity or scope for reading into it the requirement that the directors of the Company in question must also be issued individual notices under Section 138 of the Act. Such directors who are in charge of affairs of the Company and… Read More »

Govt notified Negotiable Instruments Amendment Bill 2015

The Negotiable Instruments (Amendment) Bill, 2015 notified; Focus on clarifying the jurisdiction related issues for filing cases for offence committed under Section 138 of the Act The Negotiable Instruments (Amendment) Bill, 2015 was passed by the Parliament in the recently concluded Winter Session of the Parliament. The Negotiable Instruments (Amendment) Act, 2015 received the assent… Read More »


THE GAZETTE OF INDIA EXTRAORDINARY PART II — Section 1 MINISTRY OF LAW AND JUSTICE (Legislative Department) New Delhi, the 29th December, 2015/Pausha 8, 1937 (Saka) The following Act of Parliament received the assent of the President on the 26th December, 2015, and is hereby published for general information:— THE NEGOTIABLE INSTRUMENTS (AMENDMENT) ACT, 2015… Read More »

All directors liable for cheque dishonouring as they were involved in day to day management of accused Company

Section 138, read with section 141, of the Negotiable Instruments Act, 1881 Subject :-Dishonour of cheque for insufficiency etc., of funds in account Facts of the Case :- Appellant had filed a complaint against accused company and its directors for dishonour of cheque issued by it .High Court by impugned order quashed proceedings in respect… Read More »