S.138, NI Act, 1881 : Supreme Court Scrutinizes the Provision
An important Judgment was passed by Hon'ble Supreme Court on 22 February 2001.
In context of Section 138 of Negotiable Instruments Act, 1881 in Shri Ishar Alloy Steels Ltd v Jayaswals Neco Ltd [2001] GCtR 2951 (SC) it was commented thus :
"Section 138 provides that 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 amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence punishable with imprisonment as prescribed therein subject to the conditions mentioned in clauses (a), (b) and (c) of the proviso."
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 22 February 2001.
Written by
Vishal
Delhi
Notice : Copyright of above blog and its content including headline vests with Vishal. Above should Not be reproduced in any form in newspapers/websites/Ph.D. thesis/College projects/ law firms' newsletters/law journals/books/book chapters without prior written permission. Fair use should be in terms of Copyright Act, 1957. Any violation will make violator liable for Pecuniary compensation with interest towards the author irrespective of the profit made. All disputes shall be subject to Delhi Jurisdiction.