August 16, by Sreekanth Reddy Comments A friend in need is a friend indeed. We generally approach our friends or close family members when we are in need of any financial help. We lend or borrow money based on mutual trust. Usually these types of loans hand loans are unsecured.
E-CHEQUE Electronic cheque e-cheque is the image of a normal paper cheque generated, written and signed in a secure system using digital signature and asymmetric crypto system. Simply said an electronic cheque is nothing more than an ordinary cheque produced on a computer system and instead of signing it in ink, it is signed using the digital equivalent of ink.
After the coming into force of The Negotiable Instruments Amendment And Miscellaneous Provisions Act,legal recognition has been accorded to e-cheques and they have been brought at par with the normal cheques. Dishonour of cheque for insufficiency, etc.
The payee or holder in due course should have issued a notice in writing to the drawer within 30 days of the receipt of information by him from the Bank regarding the return of the cheque as unpaid.
After receipt of the said notice from the holder in due course, the drawer should have failed to pay the cheque within 15 days of receipt of the said notice. Section describes the above ground of insufficient funds in the account of the drawer of the cheque in the following words: The amount of money standing to the credit of the account of the drawer on which the cheque is drawn is insufficient to honour the cheque, or The cheque amount exceeds the amount that can be paid by the bank under an arrangement entered into between the bank and the drawer of the cheque.
Some of theses grounds are: To attract the provisions of section NI Act, the cheque should be presented with the bank on which it I drawn- If the cheque is not presented to the bank on which it is drawn, then provisions of sec would not be attracted.
If bank on which the cheque is drawn is not a clearing member of the Reserve Bank of India — unpaid return of the cheque would not attract section Effect of other endorsements: It has been repeatedly held by courts that manifest dishonest intention of the drawer resulting in dishonour of the cheque would lead to prosecution under section Negotiable Instruments Act regardless of the actual ground of dishonour.
Section of Negotiable Instruments Act says: A director in a company cannot be deemed to be in charge of and responsible to the company for the conduct of its business.
The requirement of section is that the person sought to be made liable should be in charge of and responsible for the conduct of the business of the company at the relevant time.
This has to be averred as a fact and there is no deemed liability of a director in such cases. AIR SCW ; AIR SCAIR SC Supreme Court has also held that for the directors of the company to be made liable for an offence under secthe complaint must contain specific allegations against directors as to how directors are in charge and responsible for conduct of business of company.
Mere allegation in complaint that accused persons are directors and responsible officers of the company is not sufficient. Various High courts and the Supreme Court have explained this many a time. Complaint in respect of such a cheque issued as a gift, is not maintainable. On each presentation of the cheque and its dishonour a fresh right — and not cause of action — accrues in his favour.
He may, therefore, without taking pre-emptory action in exercise of his such right under Cl b of sec.
However, the courts take a lenient view in such cases and the accused is set free or punished lightly. The Delhi High Court has also held that if during the pendency of a dispute under sec NI Act the parties enter into a settlement, it should be respected by the courts as proceedings under sec are quasi criminal in nature.
It, therefore, follows that the magistrate is obliged and duty bound to examine upon oath the complainant and his witnesses before issuance of process under section of CrPC though there is a solemn affirmation at the foot of the complainant by the complainant.
The post-dated cheque becomes a cheque within the meaning of section on the date which is written thereon and not the 6 months period is to b reckoned for the purposes of proviso a to sec from the date.
Thus in case of a pot-dated cheque, six months period is to be reckoned from the date mentioned on the face of the cheque and not any earlier date on which the cheque was made over by the drawer to the drawee.
Respondent issued a blank cheque without mentioning the date and amount and sent it with a letter requesting complainant to present it after a month — Act of complainant in filling up amount portion and date was a material change and it could not be enforced even though it was issued for a legal liability — Alteration without the consent of the party who issued the cheque rendered cheque invalid.
These are material alterations. Accused liable to be acquitted in such cases. Supreme Court has held time and again that a cause of action for filing a complaint under section accrues to the drawee of a cheque only after a notice is issued to the drawer within the prescribed period after receipt of information by him regarding the dishonour of cheque and the subsequent failure of the drawer to make the cheque payment within the prescribed time, i.
AIR DOC KER ; 1 KLJ 10 Demand notice — Service of — Can be proved only by submitting postal receipt or by calling record of post office — In absence of postal receipt no presumption can be drawn in favour of applicant for sending said notice through registered post — Acknowledgement due receipt without any letter number or postal receipt number mentioned in it — Not having any seal of post office either at the time of sending to addressee or at the time of returning to the sender, cannot be accepted as compliance with provisions of sec b of the Act.
Presumption in favour of holder: Because both sections and require that the court shall presume the liability of the drawer of the cheques for the amounts for which the cheques are drawn…it is obligatory on the courts to raise this presumption in every case where the factual basis for the raising of this presumption had been established.
It introduced an exception to the general rule as to the burden of proof in criminal cases and shifts the onus on to the accused.Dear Sir, I received an order cheque and sent it through my friend for depositing into my account.
My friend returned with the cheque and said the bank is asking for my signature on the back of the cheque or on the deposit slip. sir my brother has his salary cheque of standard chatactered bank but his account was not there he go through bank and drop the cheque in cheque box he write there his account no.
of united bank of india but forgot to write bank name in them so plzz sujest what can i do know. Step-By-Step Obedience. I have discovered through the years that God leads us one step at a time. His promise is: "As you go, step by step I will open up the way before you" (Proverbs - Literal translation).The pillar of cloud led the Israelites day by day.
*Update: 7th March, Writing a cheque is probably the easiest thing to do right? Well, maybe. But there some simple things we overlook while writing out a cheque to someone that can easily be misused. If you want the cheque to be cleared right away, write the current date.
If you plan to give a post-dated cheque ensure you give the right date. If by mistake you put in a prior date and there aren't sufficient funds in your account, your cheque might bounce.
Signing on the back of a cheque does not of itself invalidate it. Your friend must, of course, sign the front if the cheque is to be paid. A cheque is an order to the .