Monday, December 12, 2011
NEGOTIABLE INSTRUMENTS ACT
NEGOTIABLE INSTRUMENTS ACT
Monday, April 4, 2011
NEGOTIABLE INSTRUMENTS ACT
Can a cheque issued as a surety by the guarantor be brought U/S 138?
Yes. The words “where any cheque “and “other liability” take care of the liability of a guarantor also. The criminal liability cannot be avoided. In this regard the decision reported in AIR 2002 SC 3014 – ICDS Ltd., Vs. Beena Shabeer and another., is relevant
CITATION IN RESPECT OF NEGOTIABLE INSTRUMENTS ACT
What is the effect of issuing a blank cheque?
Where the cheque is signed leaving blank all other particulars and handed over to the payee authorizing him to fill up the blanks as agreed upon, it is valid in law. Therefore, when such a cheque is dishonoured, Section 132 applies. “ILR 2001 Kar 4127 in the case of S.R.Muralidhar Vs G.Y.Ashok. In this regard Section 20 of the Act may be perused.
If the accused takes up the contention that the cheque was issued very long back and the same has been made use of subsequently beyond the validity of the cheque, then, it is necessary to know the age of signing and other hand writing. In order to find out the said aspect, it is necessary to send the same to an expert. If any application is made in this regard by the accused, then it would be appropriate on the part of the Court to send the cheque for analysis by an expert. Relevant decisions are reported in (2007)2 SCC 258-Kalyani Bhasker Vs. M.S. Sampoornam. The above decision is followed in a sub sequent decision of the Apex Court in the case of T. Nagappa Vs Y.R. Muralidhar (2008-TLPRE-0-726 , 2008 (TLS)46136)