AI Overview...
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Issuer Strict Liability & Post-Dated Cheque - A cheque is presumed to be issued in discharge of a debt or liability, and when a post-dated cheque is issued, it signifies an intention to pay at a future date. Acceptance of such a cheque by the payee, based on the faith of payment, can alter their position, creating a liability. However, the issuance of post-dated cheques does not automatically imply liability under Section 138 of the Negotiable Instruments Act unless the cheque is presented for demand after the due date. Countermanding a post-dated cheque before its date can negate the presumption of liability Goaplast Pvt. LTD. VS Chico Ursula D'Souza - Supreme Court, Gulshan Rai VS Anil Kumar - Crimes, Gulshan Rai VS Anil Kumar - Dishonour Of Cheque.
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Presentation & Negotiability of Post-Dated Cheques - A post-dated cheque becomes a negotiable instrument only upon presentation for demand, and presentation after the date can invoke liability under Section 138. Cheques issued beyond six months from the date they bear are generally outside the purview of Section 138, emphasizing the importance of timely presentation Gulshan Rai VS Anil Kumar - Dishonour Of Cheque, Gulshan Rai VS Anil Kumar - Crimes.
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Liability & Section 138 of Negotiable Instruments Act - Liability under Section 138 is strict; it applies specifically when a cheque is dishonored after proper presentation within the statutory period. Issuance of post-dated cheques, often for convenience or as a guarantee, does not automatically make the issuer liable under Section 138 unless the cheque is dishonored upon presentation. Civil liabilities may arise independently, but criminal liability under Section 138 requires compliance with procedural requirements K. M. Enterprises VS Garware Synthetics Ltd. - Dishonour Of Cheque, K. M. Enterprises VS Garware Synthetics - Bombay.
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Legal Presumption & Countermanding - Courts presume that cheques are issued in respect of existing liabilities. Countermanding or stopping payment before the cheque’s date can negate the presumption of liability. The acceptance of a post-dated cheque based on the faith of its payment can lead to liability if dishonored, but such liability is contingent upon proper presentation and compliance with legal procedures Goaplast Pvt. Ltd. VS Shri Chico Ursula D’Souza - Crimes, Goaplast Pvt. Ltd. VS Shri Chico Ursula D’Souza & Anr. - Dishonour Of Cheque.
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Liability & Section 141 & 138 - Section 141 creates a constructive liability for company directors if they are involved in issuing cheques for a liability. However, the statute demands strict compliance, and liability cannot be assumed without proper averments and proof of involvement at the time of issuance. Issuance of cheques for a legally enforceable liability supports criminal proceedings under Section 138, provided procedural requirements are met Dinesh Mohindra VS DCM Financial Services Ltd. - Dishonour Of Cheque, C. Duraisamy VS K. Balakrishnan - Madras.
Analysis and Conclusion
Issuance of post-dated cheques involves complex legal considerations. While they are presumed to be issued in discharge of liabilities, their enforceability under Section 138 depends on timely presentation and dishonor. Countermanding or stopping payment before the due date can negate liability. The law emphasizes strict compliance, especially under Sections 138 and 141 of the Negotiable Instruments Act, making it essential to establish proper issuance, presentation, and dishonor procedures for criminal liability to arise. Post-dated cheques are often used for convenience or as security, but their legal enforceability hinges on adherence to statutory requirements.
Search Results for "Issuer Strict Liability Post Dated Cheque"
2003 2 Supreme 536 • India - Supreme Court
M.B.SHAH, ARUN KUMAR
Thus it has to be presumed that a cheque is issued in discharge of any debt or other liability. ... The issue is regarding payment of a post-dated cheque being countermanded before the date mentioned on the face of the cheque. ... On the faith of payment by way of a post-dated cheque, the payee alters his position by accepting the cheque. ... On 12th February, 1993 respondent No.....
• India - Dishonour Of Cheque
CHAHAL
- Cheque is drawn on the date when the drawer signs it, complete in its form - Cheque post dated beyond the period of six months ... Negotiable Instruments Act, 1881- Section 138 - Post dated cheque ... from the date the cheque bears will be out of the purview of section 138 of the Act - Disputed cheques, issued by petitioner, being ... The cheques were post-dated#HL_EN....
• India - Crimes
CHAHAL
Negotiable Instruments Act, 1881- Section 138 - Post dated cheque - Cheque is drawn on the date when the drawer signs it, complete ... in its form - Cheque post dated beyond the period of six months from the date the cheque bears will be out of the purview of section ... 138 of the Act - Disputed cheques, issued by petitioner, being post dated were presented to the bank more than....
2009 0 Supreme(Del) 217 • India - Delhi
S.MURALIDHAR
The judgment emphasized that a post-dated cheque becomes a negotiable instrument only when it is presented for demand, and a person ... The court also clarified that a post-dated cheque becomes a negotiable instrument only when presented for demand and that a person ... the cheque and the sufficiency of the allegations in the complaint to establish their liability. ... Section 141 of the Act provides for a constructive liability. A ....
2003 2 Supreme 536 • India - Crimes
M.B.SHAH, ARUN KUMAR
Thus it has to be presumed that a cheque is issued in discharge of any debt or other liability. ... The issue is regarding payment of a post-dated cheque being countermanded before the date mentioned on the face of the cheque. ... On the faith of payment by way of a post-dated cheque, the payee alters his position by accepting the cheque. ... On 12th February, 1993 respondent No.....
2003 2 Supreme 536 • India - Dishonour Of Cheque
ARUN KUMAR, M.B.SHAH
Thus it has to be presumed that a cheque is issued in discharge of any debt or other liability. ... The issue is regarding payment of a post-dated cheque being countermanded before the date mentioned on the face of the cheque. ... On the faith of payment by way of a post-dated cheque, the payee alters his position by accepting the cheque. ... On 12th February, 1993 respondent No.....
• India - Dishonour Of Cheque
MRIDULA BHATKAR
difficulty of accused — HELD — Such replacement of cheques by post-dated cheques not intended for presentation or repayment — But ... handed over to give assurance of acknowledgement of debt — General liability to pay debt and liability to pay legally dischargeable ... Negotiable Instruments Act, 1881 — Section 138 — Liability under ... Thus, there may be a general liability to pay which can be claimed pursuing civil litigation but not under Section ....
2014 0 Supreme(Bom) 2077 • India - Bombay
MRIDULA BHATKAR
pursuing civil litigation but not under Section 138 of the Negotiable Instruments Act, which is a strict and specific liability. ... Issuing post dated cheques may look like giving accommodation cheques’ Every accommodation cheque, in fact, is a postdated cheque ... ; while post dated cheques are issued not only because the funds are less but for various reasons viz., convenience....
• India - Dishonour Of Cheque
S.MURALIDHAR
Held: Petitioners were not the directors of the accused company in the date when the cheque ... was signed and issued—Nothing was averred against them in the complaint. ... Section 141 of the Act provides for a constructive liability. A legal fiction has been created thereby. The statute being a penal one, should receive strict construction. It requires strict compliance of the provision. ... It ii clear from Section 19 that a cheque is an instrument which is payable on demand. A #HL_S....
2014 0 Supreme(Mad) 4167 • India - Madras
R.S.RAMANATHAN
was issued against legally enforceable liability - Criminal Appeal is allowed ... cheat both persons issued cheques in that manner and on that account it cannot be held that cheque was not issued for a legally ... in question would not have been issued having regard to subject matter of cheque filed – Admittedly cheque is subject matter - Subject ... was issued for a legally enforceable liability....
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