AI Overview...
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One Cheque Can Be Forfeited After Notice - When a payee issues a notice under Section 138(b) of the Negotiable Instruments Act, 1881, the right to re-present the cheque is forfeited. Once such notice is given, the payee cannot present the same cheque again for encashment, and subsequent dishonor can lead to criminal proceedings. This principle was upheld in cases like Sadanandan Bhadran Dr. Bharat Ram VS S. K. Gupta - Crimes, Dr. Bharat Ram VS S. K. Gupta - Dishonour Of Cheque, and others, emphasizing that giving notice under Section 138(b) terminates the right to re-present the cheque.
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Multiple Presentations and Causes of Action - A cheque can form the basis for multiple causes of action if presented multiple times before the expiry of its validity period. However, after a notice under Section 138(b) is issued, further presentation is barred, and subsequent legal actions are based on the dishonor after notice. Courts have clarified that successive causes of action may arise from the same cheque, but only up to the point where notice has been issued and the right to re-present is forfeited S. K. D. Lakshmanan Fireworks Industries VS K. V. Sivarama Krishnan - Kerala, Lakshmanan VS Sivarama Krishnan - Dishonour Of Cheque.
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Forfeiture of Amounts - The law permits forfeiture of a reasonable amount in cases like sale agreements or settlement disputes. Excessive forfeiture, such as 20% of the sale price, may be deemed unreasonable and invalid. In contractual contexts, only a reasonable amount can be forfeited, and this is subject to judicial scrutiny V. Siva Kumar VS M/s. M3M India Private Limited - Consumer.
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Dishonor of Cheques and Settlement - In cases where cheques bounce due to insufficient funds, the legal process involves issuing demand notices and, if dishonored, initiating criminal proceedings under Section 138. Settlement cheques may also be dishonored, and repeated dishonors can nullify the settlement agreement SANJEEDA KHATOON VS SHER AH - Jharkhand, HDFC Bank (Card Division) VS Somesh Chandra Sharma - Consumer.
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Legal Effect of Cheque Encashment and Payment Date - The date of deposit or encashment of a cheque is significant for determining the date of payment. Payment by cheque is considered an ordinary incident of commercial transactions, and unless explicitly stated, the date of receipt of cheque is relevant for legal proceedings Vidushi Wires Pvt. Ltd. & another VS Union of India & another - Bombay.
Analysis and Conclusion
A single cheque can be forfeited if the payee issues a valid notice under Section 138(b), after which further presentation is barred, and legal actions are based on dishonor post-notice. Multiple causes of action can arise from the same cheque if presented within its validity period and before notice is issued. Forfeiture of amounts must be reasonable; excessive forfeiture is invalid. These principles are well-established through judicial rulings, emphasizing the importance of timely notices and adherence to legal procedures in cheque dishonor cases.
Search Results for "One Cheque can be Forfieted"
2002 0 Supreme(Jhk) 1153 • India - Jharkhand
GURUSHARAN SHARMA, H.S.PRASAD
Sher Ali, respondent No. 1 has already received an account payee cheque for the entire amount of compensation along with interest issued by the insurance company. He is, therefore, directed to return the said cheque to the insurance company by 14. 11. 2002. ... The insurance company is directed to prepare two separate account payee cheques, one in the name of Sanjeeda Khatoon, appellant for Rs. 26,000 as principal amount of compensation plus interest and another in the name of Md. ... Sher Ali for Rs. 1,00,000 as princip....
• India - Crimes
K.S.GUPTA
its validity but once he gave notice under Section 138(b) of the Act, he forfeited right to again present the cheque - Complaint ... again and he presented cheque again on 4-4-1998 but cheque was returned unpaid - Another legal notice dt. 21-4-1998 was sent to ... Negotiable Instruments Act, 1881 - Sections 138 and 142 Cheque returned unpaid - Demand notice dated 8-12-1997 sent by complainant ... In Sadanandan Bhadran's case (supra), the Supreme Court held that the payee can go on presenting a #HL_START....
• India - Dishonour Of Cheque
K.S.GUPTA
Negotiable Instruments Act, 1881 - Sections 138 and 142 Cheque ... In Sadanandan Bhadran's case (supra), the Supreme Court held that the payee can go on presenting a cheque any number of times during the period of its validity but once he gives the notice under Clause (b) of Section 138 of the Act, he forfeits the right to again present the cheque and complaint could ... The allegations made in four complaints barring cheque numbers are by and large identical. ... 3. Submission advanced by Ms. ... Seem 51- Gulati for pet....
• India - Consumer
ANUP K.THAKUR, C.VISWANATH
given towards settlement, two cheques were bounced for “insufficient funds”—Hence, the purpose of one time settlement is forfeited ... directly through Savings Bank Account—When the outstanding amount of loan grew higher, the Petitioners agreed with the Respondent for one ... time settlement of loan—On various dates the Complainant paid the outstanding amount as per the settlement, by way of cheques—After ... Cheque No. 631902 and 631903 for Rs.5553/- each were dishonoured on account ....
2003 0 Supreme(AP) 620 • India - Andhra Pradesh
Negotiable Instruments Act - Section 138 - Criminal Procedure Code,1973 - Section 482 - Quash - Dishonor of cheque ... and its dishonor - It is thus axiomatic that even if a payee issues more than one notice to drawer former can validly maintain a ... First, in that case the complainant therein presented the cheque to the Bank on 5. 1. 1991 and on the cheque being bounced issued a notice to the payee on 15. 1. 1991, and again presented the cheque on 4. 5. 1991 and when the cheque was d....
2002 0 Supreme(Bom) 1243 • India - Bombay
V.C.DAGA, J.P.DEVADHAR
The petitioner replied to the aforesaid show cause notice vide its letter dated 30th September, 2002 and tried to canvass that the date of deposit of the cheque should be treated as the date of payment or at any rate upon encashment of cheque, it will relate back to the date of receipt of the cheque. ... Saraswathy (supra), has made caveat that the payment by cheque is an ordinary incident of present day life, whether commercial or private and unless it is specifically mentioned that payment must be in cash, there is no ....
• India - Consumer
V.K.JAIN
So far as forfeiture of the amount is concerned, It would thus be seen that only a ‘reasonable amount’ can be forfeited as earnest ... In our opinion, 20% of the sale price cannot be said to be a reasonable amount which the Petitioner Company could have forfeited ... Agreement – Construction linked payment – Fourth Installments onward not paid – Hence, allotment cancelled and amount already given was forfeited ... As far as the alleged acceptance of one cheque of Rs10 lakh and other cheque#HL_....
1995 0 Supreme(Ker) 10 • India - Kerala
M.M.PAREED PILLAY, T.V.RAMAKRISHNAN, P.SHANMUGAM
The court concluded that successive causes of action may arise on the basis of one and the same cheque for filing a complaint under ... Ratio Decidendi: The court held that successive causes of action may arise on the basis of one and the same cheque for filing ... The petitioners have contended that even before 11-8-1993 and cheque was once presented and dishonoured in May, 1993. ... the strength of one and the same cheque. ... Legislature cannot be imputed with the....
2009 0 Supreme(Bom) 980 • India - Bombay
ANOOP V.MOHTA
The respondents had issued cheques accordingly. However, except one cheque of Rs.11,00,000/- (Rupees eleven lacs), all other cheques were bounced. Therefore, at this stage as there was no full payment made, the original liability except the amount of one cheque of Rs.11 lac, remained unpaid. ... It was mutually settled and reduced to Rs.5,01,00,000/- (Rupees five crore and one lac), towards full and final settlement. The respondents failed to make payment and as excep....
• India - Dishonour Of Cheque
P.SHANMUGAM, T.V.RAMAKRISHNAN, M.M.PAREED PILLAY
and the same cheque. ... Successive causes of action may arise on the basis of one and the same cheque for filing complaint under section 142 subject to the ... bouneing - Whether the payee or holder in due course of a dishonoured cheque can validly initiate prosecution with reference to ... on the strength of one and the same cheque, Even if a number of causes of action can be created legally it may not be possible to prosecute the drawer of the same cheque and convi....
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