Searching Case Laws & Precedent on Legal Query..!
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Searching Case Laws & Precedent on Legal Query..!
Scanned Judgements…!
Section 138 of NI Act - The offence pertains to dishonour of cheques under Section 138 of the Negotiable Instruments Act. Multiple cases involve petitions, trials, and settlements related to this section 2025 Supreme(Online)(Kar) 32796, 2025 Supreme(Online)(Kar) 33334, 2023 Supreme(Online)(KAR) 17734, 2025 Supreme(Online)(Kar) 32799, 2024 Supreme(Online)(Kar) 40827.
Joint Settlement/Memo - A common theme across these sources is the filing of joint memos by parties involved, often leading to the quashing of charges, acquittal, or disposal of cases. These memos record mutual settlement, payment of amounts, and the parties' consent without coercion 2025 Supreme(Online)(Kar) 32796, 2025 Supreme(Online)(Kar) 33334, 2023 Supreme(Online)(KAR) 17734, 2024 Supreme(Online)(MAD) 42827, 2025 Supreme(Online)(Kar) 32799, 2023 Supreme(Online)(KAR) 12989.
Acquittal and Discontinuation - Courts frequently accept joint memos, resulting in the acquittal of accused persons, discharging bail bonds, and dismissing or setting aside convictions. The amounts deposited are often paid to complainants as per settlement terms 2025 Supreme(Online)(Kar) 33334, 2023 Supreme(Online)(KAR) 17734, 2024 Supreme(Online)(MAD) 42827, 2023 Supreme(Online)(KAR) 12989.
Liability and Joint Accounts - Section 138 does not generally impose joint liability. Only the drawer of the cheque can be prosecuted, and in cases involving joint accounts, all account holders must sign the cheque for them to be liable. A person who is merely a joint account-holder without signing the cheque cannot be prosecuted under Section 138 2023 0 Supreme(P&H) 906.
Legal Procedure and Court Orders - Courts are receptive to settlement agreements, often permitting compounding of offences in the case of Section 138, provided the parties agree voluntarily. Orders include transmission of trial court records, discharge of bonds, and payment of settled amounts 2025 Supreme(Online)(Kar) 32796, 2025 Supreme(Online)(Kar) 33334, 2023 Supreme(Online)(KAR) 17734, 2024 Supreme(Online)(MAD) 42827.
Analysis and Conclusion:The overarching trend indicates that cases under Section 138 of the NI Act often culminate in mutual settlement through joint memos, leading to acquittals or dismissals. The law emphasizes that only the drawer of the cheque is liable, and joint liability is not recognized unless all parties have signed the cheque. Courts favor settlement and compounding, facilitating the resolution of disputes amicably. These practices streamline proceedings and promote dispute resolution outside prolonged trials.
References:- 2025 Supreme(Online)(Kar) 32796- 2025 Supreme(Online)(Kar) 33334- 2023 Supreme(Online)(KAR) 17734- 2025 Supreme(Online)(Kar) 32799- 2024 Supreme(Online)(MAD) 42827- 2023 0 Supreme(P&H) 906
Cheque bounce cases under (NI Act) are common in India, often arising from business transactions gone sour. But what happens when multiple parties are involved, such as or company directors? A frequent query is: 138 N I Act – does the law mandate joint trials for such cases, and who exactly can be prosecuted? This blog post breaks down the legal framework, drawing from statutory provisions, court rulings, and practical insights to help you navigate these complexities.
Note: This article provides general information based on legal precedents and is not a substitute for professional legal advice. Consult a qualified lawyer for case-specific guidance.
Section 138 penalizes the due to insufficient funds or if it exceeds the arranged amount. 2021 0 Supreme(Ker) 483 The offence is committed only by the drawer of the cheque, subject to strict conditions:
These timelines are bifurcated: the main section excludes provisos, while provisos set distinct limits. 2019 0 Supreme(Bom) 1456
The provision aims to instill faith in banking operations and negotiable instruments, as observed by the .
Geetha VS Vasanthi S. Shetty - Dishonour Of Cheque
A key question in multi-party scenarios is whether joint trials are required. (CrPC) permits joint trials for persons accused of the same offence committed in the course of the same transaction, but it is not obligatory. Courts have discretion. 2023 0 Supreme(Ker) 165
For Section 138 cases, Joint Trials: Section 220 of the Criminal Procedure Code allows for joint trials but is not obligatory. It is an enabling provision, meaning the court has discretion in deciding whether to conduct a . 2023 0 Supreme(Ker) 165
Trial courts adopt procedures under CrPC read with NI Act provisions. 2016 0 Supreme(All) 1796 There's no mandate for joint trials unless circumstances like common evidence warrant it. Each case may proceed independently. 2023 0 Supreme(Ker) 165
Prosecution hinges on who signed the cheque. In joint accounts, a holder cannot be prosecuted unless all account holders signed the cheque. Liability rests primarily with the drawer. 2013 5 Supreme 376 1966 0 Supreme(SC) 248
Prosecution of : In cases involving joint accounts, a joint account holder cannot be prosecuted under Section 138 unless the cheque has been signed by all account holders. 2013 5 Supreme 376 1966 0 Supreme(SC) 248
This aligns with precedents: Section 138 does not generally impose joint liability. Only the can be prosecuted, and in cases involving joint accounts, all account holders must sign the cheque for them to be liable. A person who is merely a joint account-holder without signing the cheque cannot be prosecuted under Section 138.2023 0 Supreme(P&H) 906
If the accused skips summons and approaches the , it must direct appearance before the , who handles the trial. 2013 0 Supreme(Kar) 221
Under , company officers 'in charge' may face if the company dishonours a cheque. However, this doesn't extend to non-signatories. 2013 5 Supreme 376
: Under Section 141, individuals in charge of a company may be held liable if the company commits an offence under Section 138, but this does not extend to individuals who are not signatories to the cheque. 2013 5 Supreme 376
Section 138 offences are compoundable, allowing amicable settlements. Courts frequently accept joint memos recording mutual terms, leading to acquittals.
For instance, The petitioner is acquitted of the offence punishable under Section 138 of N.I. Act... A is filed recording the terms of the settlement... compoundable, permission accorded for compounding in terms of the .
Multiple cases show this trend: joint memos result in , discharging bail, and payments to complainants. 2025 Supreme(Online)(Kar) 32796 2025 Supreme(Online)(Kar) 33334 2023 Supreme(Online)(KAR) 17734 2025 Supreme(Online)(Kar) 32799 2024 Supreme(Online)(MAD) 42827 2023 Supreme(Online)(KAR) 12989
Joint Settlement/Memo - A common theme... is the filing of joint memos by parties involved, often leading to the quashing of charges, , or disposal of cases. 2025 Supreme(Online)(Kar) 32796 2025 Supreme(Online)(Kar) 33334
In one case, records were transmitted post-settlement, with Rs.1,50,000 involved.
Another involved a handling NI Act trials.
and Discontinuation - Courts frequently accept joint memos, resulting in the of accused persons, discharging bail bonds... 2025 Supreme(Online)(Kar) 33334 2023 Supreme(Online)(KAR) 17734
This promotes swift resolutions, avoiding prolonged trials. 2007 0 Supreme(Ker) 32
Joint trials under Section 138 NI Act are permissive, not required, emphasizing drawer liability. escape prosecution without signatures, and settlements via joint memos often end cases favorably. 2023 0 Supreme(Ker) 165 2013 5 Supreme 376 2025 Supreme(Online)(Kar) 32796
Key Takeaways:- Only drawers/signatories are liable. 2013 5 Supreme 376- Joint trials at court's discretion. 2023 0 Supreme(Ker) 165- Compoundable nature favors settlements. 2007 0 Supreme(Ker) 32
- limited to responsible officers. 2013 5 Supreme 376
Stay compliant with NI Act procedures to mitigate risks. For tailored advice, reach out to a legal expert.
2019 0 Supreme(Bom) 1456 2018 0 Supreme(Mad) 3260 2016 0 Supreme(All) 1796 2013 0 Supreme(Kar) 221
Geetha VS Vasanthi S. Shetty - Dishonour Of Cheque
No. 18/2012 for offence under Section 138 of NI Act. ... JMFC, KARWAR IN C.C.NO. 18/2012 FOR OFFENCE UNDER SECTION 138 OF NI ACT AND SET THE PETITIONER/ACCUSED AT LIBERTY. ... 3 The respondent shall withdraw the amount deposited before the trail court. ... A joint memo is filed reporting the settlement. ... Pursuant to the joint memo, a sum of Rs.20,000/- is tendered....
A joint Memo is filed on behalf of the parties to this effect, which reads as under: “JOINT MEMO Herein the above named petitioner and respondent begs to file the Joint memo as under:- 1) The trail court has convicted the above petitioner u/s 138 of NI Act and imposed ... SENIOR CIVIL JUDGE AND CJM COURT, DHARWAD IN CC NO.2609/2023 FOR THE OFFENCE UNDER SECTION 138 OF N....
for the offence punishable under Section 138 of the Negotiable Instruments Act regarding the cheque for a sum of Rs. 10,000,00/- (Rupees Ten Lakhs only). ... Both parties submitted that they will file joint memo before the Office of KSLSA on 13.02.2023. ... of the Negotiable Instruments Act, arising out of C.C No. 25242/2016 on the file of the learned XV Addl. ... …Respondent JOINT#HL_END....
The petitioner is acquitted of the offence punishable under Section 138 of N.I. Act. Bail bond of the petitioner and his surety shall stand discharged. ... A joint memo is filed recording the terms of the settlement. ... compoundable, permission accorded for compounding in terms of the joint memo. ... The trail court records to be transmitted to the trial court forthwith. ... The amount of Rs.1,50....
5.In view of the compromise arrived at between the parties, this Court permits the compounding of the offence under section 138 of N.I.Act. ... of NI Act was filed. ... ORDER The Criminal Revision Petition challenges the conviction of the petitioners for the offence under Section 138 of Negotiable Instrument Act and sentence imposed on the petitioners to undergo rigorous imprisonment ... The parties have....
It is submitted that the Trail Court has convicted the petitioner herein for the offense punishable U/s 138 of NI Act in CC No. 981/2011 and sentenced to pay an amount of Rs. 2,60,000/- out of which Rs. 2,55,000/- to be paid to the respondent/complainant and Rs.5000/- to be paid to the state. ... JMFC COURT, RANEBENNUR IN C.C.NO.981/2011 DATED 18.11.2015 FOR THE OFFENCES PUNISHABLE UNDER SECTION 138 OF NI ACT#HL_....
Sessions Judge, Chapainawabganj for trail ... Judge, Chapainawabganj for trail ... of the Negotiable Instruments Act, 1881 on 07.02.2021, which was read over to him who pleaded not guilty and claimed to be tried. ... of the Negotiable Instruments Act, 1881 as C.R. ... After receiving the case record the learned Joint Sessions /span
The above respondent/complaint has filed a case against the accused/Revision petitioner for an offence which is punishable under Section 138 of Negotiable Instruments Act., for the dishonoured of cheque dated 03/05/2015, bearing No.1086047. issued for Rs.3,00,000/- (Rupees Three lakhs only) p class ... Parties herein are referred to as per their respective status before the trail court for the sake of convenience and brevity 2. ... deposite....
Section 138 of the NI Act does not speak about the joint liability. Even in case of a joint liability, in case of individual persons, a person other than a person who has drawn the cheque on an account maintained by him, cannot be prosecuted for the offence under Section 138 of the NI Act. ... We also hold that under Section 138 of the NI Act, in case ....
The accused is acquitted under Section 138 of the Negotiable Instrument Act. ... It is to be noted here that, the alleged offence under section 138 of the Negotiable - 4 - Instrument Act is a compoundable offence. ... Hence, accepting the joint memo, the Criminal Revision Petition filed by the petitioner stands allowed. ... The Petitioner has deposited a sum of Rs. 3,00,000/- (three lakhs only) ....
Section 138 of N.I.Act is bifurcated into two parts. Different time limit is prescribed for these stages. One is 'part excluding three proviso' and second is 'part comprising three provisos'.
Thereafter, the case under Section 138 of the Negotiable Instruments Act had been filed against the respondent before the trail Court.
7. Insofar as the questions (b) and (c) are concerned, it is for the trial Court to adopt the procedure, as contemplated under the provisions of the Code read with the provisions of N.I. Act while dealing with the case under Section 138 of the N.I. Act. Thus, we find that the order dated 28.11.2003 is not beyond the scope of Section 482 of the Code.
If the accused does not appear before the Court of the Metropolitan Magistrate on summoning and rather approaches High Court, the High Court has to refuse to entertain him and ask him to appear before the Court of the Metropolitan Magistrate as the High Court cannot usurp the powers of the Metropolitan Magistrate and entertain a plea of the accused why he should not be tried under Section 138. The documents placed on record of the Court about the dishonour of cheque are the documents from bank....
12. Section 138 of the N.I. Act was introduced by Act 66/88. v. Indian Technologists and Engineers (Electronics) (P) Ltd.1 is to inculcate faith in the efficacy of Banking operations and credibility in transacting business on negotiable instruments and despite civil remedy. The object of bringing this section in the statute book as observed by Apex Court in the case of Electronics Trade and Technology Development Corporation Ltd.
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