Dishonour of Cheques — Overview A cheque is a negotiable instrument. When someone issues a cheque to pay a debt or other liability and that cheque is returned unpaid by the bank, the law provides both civil remedies (money recovery) and criminal consequences (punishment under Section 138 NI Act) for the drawer in appropriate cases. The NI Act transformed certain cheque dishonours from only a civil matter into a penal offence to protect the credibility of cheque transactions. Key statutory tools to look at are Section 138 (the penal provision for dishonour) and Section 139 (statutory presumption in favour of the holder). For reference, the official Act text is available on IndiaCode. ( India Code ) Essential statutory ingredients (what must be proved for Section 138) Section 138 creates criminal liability when a cheque is dishonoured for certain bank endorsements and the statutory procedure is followed. In short, the main ingredients are: Cheque drawn by accused — Th...
Section 15: Exclusion of Time in Certain Other Cases This section provides rules for excluding certain periods when computing the limitation for filing suits or applications in special circumstances. The aim is to ensure fairness when external factors prevent a party from filing within the normal limitation period. 15.1. Exclusion Due to Injunctions or Orders What it covers: When a suit or application for the execution of a decree is affected by an injunction or order from the court. Time excluded: The entire period during which the injunction or order continues. The day the injunction/order was issued . The day it was withdrawn . Purpose: Prevents penalizing a party for delays caused by court orders beyond their control . Example: A decree is issued on 1st July. A temporary injunction stays execution from 5th July to 20th July. Limitation period excludes 5th July to 20th July , as well as 5th July and 20th July . 15.2. Exclusion Due to...