Section 138 of Negotiable Instruments Act, 1881 : Supreme Court Highlights an Important Aspect

Section 138 of Negotiable Instruments Act, 1881 : Supreme Court Highlights an Important Aspect

An important Judgment was passed by Hon'ble Supreme Court on 10 March 1999.

In context of Negotiable Instruments Act, 1881, it has been commented in Saketh India Pvt Ltd v M/s India Securities Ltd [1999] GCtR 2978 (SC) thus : - 

"Section 138 of the Act inter alia provides that where any cheque drawn by a person is returned by the Bank unpaid, such person shall be deemed to have committed an offence, however, it will apply, if conditions mentioned in clauses (a), (b) and (c) are satisfied. Section 142 further provides that Court shall take cognizance of any offence punishable under Section 138 on a written complaint made by the payee or the holder in due course, if such complaint is filed within one month of the date on which the cause of action arises. A month is to be reckoned according to the British Calendar as defined in the General Clauses Act, 1897."

Kindly note that full text Judgments of Hon'ble Supreme Court can be downloaded absolutely free of cost (without any charges except internet data) from the official website at the link 

 https://main.sci.gov.in/judgments

Then entering the date of Judgment, for example, as 10 March 1999.

Written by 

Vishal

Delhi

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