AI Overview...
- Liability under Section 138 - Main points and insights:
- A 'stop payment' instruction does not automatically absolve the drawer from liability under Section 138, unless valid reasons are proven. Courts have held that mere stop payment instructions do not negate liability (01700026105, 02300070380, 02500070810).
- The accused bears the burden of proving that there was no liability, especially when the cheque is dishonored due to stop payment instructions. The existence of mala fide intentions can influence liability (02500082826).
- Payment after dishonor does not necessarily absolve the drawer from liability under Section 138; the courts have consistently held that such payments do not automatically extinguish liability unless specifically proven to be a full and final settlement (00900017408, 00900012195, 02100115516).
-
In cases where liability is acknowledged or accepted, even if the payment is made post-dishonor, it may not nullify the initial liability unless it is demonstrated as a full discharge of the debt (02700048338).
-
Analysis and Conclusion:
- Liability under Section 138 extends beyond mere payment; it encompasses the obligation to honor the cheque unless valid legal defenses, such as proof of mala fide intent or full settlement, are established.
- Stop payment instructions, in themselves, do not exempt the drawer from liability, emphasizing that liability is more comprehensive than just the act of payment.
- Courts emphasize that the burden of proof lies on the accused to establish the absence of liability and that mere payment or instructions to stop payment do not automatically negate the presumption of liability under Section 138.
- Overall, liability under Section 138 is deemed more significant than the act of payment alone, focusing on the legal obligation and intent behind the dishonor or stoppage of payment (01700026105, 02500082826, 00900017408, 02300070380).
Search Results for "Liability is more than the Payment in 138"
2009 0 Supreme(Raj) 1658 • India - Rajasthan
BHANWAROO KHAN
Negotiable Instruments Act - Section 138 - Liability under Section 138 for 'stop payment' instruction Fact of the Case: ... Ratio Decidendi: The court held that the accused's 'stop payment' instruction could attract liability under Section 138, as ... Issues: The main issue was whether the accused's 'stop payment' instruction could lead to liability under Section 138 of the ... (supra) "Stop payment#HL_....
2014 0 Supreme(All) 3209 • India - Allahabad
VISHNU CHANDRA GUPTA
payment. ... Act is normally based on documentary evidence, and the burden lies on the accused to establish non-existence of any liability of ... section 138 of the N.I. ... Ltd" towards full and final payment of the outstanding amount along with interest. ... To establish non existence of any liability of payment, the burden lies on the shoulder of the accused, has to discharge in view of section 139 of NI Act during the course of proceeding. Existence of mala fidies of opposite party....
2007 0 Supreme(Cal) 311 • India - Calcutta
PRAVENDU NARAYAN SINHA
liability under Section 138 of the NIA? ... from criminal liability. ... - LIABILITY UNDER SECTION 138 - PRESUMPTION UNDER SECTION 139 - REBUTTAL BY ACCUSED. ... After the award was passed by the Arbitrator there cannot be any further liability of the petitioners for payment of dues of complainant. There was no element of section 138 as well as Section 141 of the N.. Act against the petitioners. ... /complainant about such instruction of "stop #HL_ST....
• India - Punjab and Haryana
AMOL RATTAN SINGH
of liability under Section 138 of the Negotiable Instruments Act, emphasizing that even if a cheque is dishonored due to stop payment ... instructions, the drawer cannot escape liability unless valid reasons for stoppage of payment are proven. ... under Section 138, even if the cheque was dishonored due to stop payment instructions, unless valid reasons for stoppage of payment ... is a stoppage of payment of cheque, the person issui....
2019 Supreme(Online)(KER) 59398 • India - High Court of Kerala
R. NARAYANA PISHARADI, J
a cheque without sufficient funds, affirming the trial court's interpretation of evidence regarding liability and cheque issuance ... Case: The petitioner was convicted for issuing a cheque without sufficient funds after borrowing money and failing to make payment ... Cheque - Negotiable Instruments - Negotiable Instruments Act, 1881 - Section 138 - The court upheld the conviction for issuing ... The case of the complainant is that the accused borrowed an amount of Rs.3,00,000/- from him on 20.08.2009 promising that she would return the ....
2010 Supreme(Online)(KER) 21720 • India - High Court of Kerala
V.RAMKUMAR, J
Liability - Negotiable Instruments Act - Section 138, Section 357 - The court examined the validity of conviction under Section ... 138, confirming it due to non-payment after a statutory notice, and modified the sentence to impose a fine only, aligning with Supreme ... Ratio Decidendi: Conviction under Section 138 was confirmed due to proven non-payment after a proper statutory notice; however ... The courts below have concurrently held that the cheque in question was drawn by the pe....
2023 0 Supreme(MP) 492 • India - Madhya Pradesh
MANINDER S. BHATTI
Issues: Dispute over payment under Section 138 of the Negotiable Instruments Act, acceptance of liability by the respondents ... The respondents accepted liability for the payment but later rejected the representation of the petitioner. ... Negotiable Instruments Act - Payment Dispute - 138 - Summary: The court addressed the dispute over payment under Section 138 of ... The respondents did not dispute their liability#HL_E....
2010 0 Supreme(All) 1985 • India - Allahabad
PRAFULLA C.PANT
The court also stated that instructing the bank to stop payment does not absolve the accused of liability under section 138 of the ... The court also stated that instructing the bank to stop payment does not absolve the accused of liability under section 138 of the ... Instructing the bank to stop payment does not absolve the accused of liability under section 138 of the Negotiable Instruments Act ... Kuchil Kumar Nandi (1998) 3 SCC....
2015 0 Supreme(Mad) 1240 • India - Madras
R.MALA
Issues: Whether the payment of the entire cheque amount abandoned criminal liability under Section 138 of the Act. ... Negotiable Instruments Act - Criminal Liability - Section 138 - 138(b), 139, 118, 27 of the General Clauses Act Fact of ... accused from criminal liability. ... Now this Court has to decide whether payment of entire cheque amount is abandoned criminal liability under Section 138 of the Act. ... sh....
2000 0 Supreme(Cal) 116 • India - Calcutta
BASUDEVA PANIGRAHI
Whether the payment of the amount after the dishonour of the cheque absolved the petitioners of their liability under Section 138 ... under Section 138 of the Negotiable Instruments Act, 1881, as the payment could not absolutely absolve the liability of the petitioners ... The court held that the payment of the amount after the dishonour of the cheque did not absolve the petitioners of their liability ... I am not in a position to accept the submissi....
Filter by Legal Phrase
