Skip to main content

Posts

Dishonour of Cheques — Overview

  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...
Recent posts

Section 15 – Exclusion of Time in Certain Other Cases

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 The day it was withdrawn .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...

Section 13 and Section 14 of the Limitation Act

Section 13: Exclusion of Time in Cases Where Leave to Sue or Appeal as a Pauper is Applied For 13.1. Scope of Section 13 Applies when a person applies to sue or appeal as a pauper (i.e., without paying court fees due to financial inability). If the application for leave to sue or appeal is made in good faith but rejected , the law provides relief in calculating limitation. 13.2. Exclusion of Time The time spent prosecuting the application for leave to sue/appeal as a pauper is excluded from the period of limitation. This means the clock for filing the suit or appeal does not start ticking while the person is legitimately waiting for the court’s decision on their pauper application. 13.3. Effect of Payment of Court Fees If the court eventually allows the suit or appeal: The applicant can pay the court fees at that time , and The suit or appeal will be treated as valid from the first day , as if the fees had been paid initially. 13.4. Key Points to...

Section 12 – Exclusion of Time in Legal Proceedings

Section 12: Exclusion of Time in Legal Proceedings This section of the Limitation Act deals with situations where certain days or periods are excluded while calculating the period of limitation for filing suits, appeals, or applications. It ensures that a person is not unfairly penalized for delays that are beyond their control, such as waiting for copies of judgments or decrees. 12.1. General Rule: Excluding the First Day What it says: When calculating the period of limitation for any suit, appeal, or application, the first day from which the limitation period starts is not counted . Why: This ensures fairness by giving a complete day for a person to act, rather than starting the clock immediately. Example: If a limitation period starts on 1st October, the counting begins from 2nd October. 12.2. Appeals, Revisions, and Review Applications Scope: This applies when computing limitation for: Appeals Applications for leave to appeal Applications for revisi...

Limitation act Notes 3

  Section 7: Disability of One of Several Persons Main Provision When several persons are jointly entitled to institute a suit or make an application for execution of a decree, and one of them is under a disability (e.g., minority, insanity, idiocy): If a valid discharge (release from liability) can be given without the concurrence of the disabled person, then time will run against all the persons, including the disabled one. If no valid discharge can be given without the concurrence of the disabled person, then time does not run against any of them until: The disabled person becomes capable of giving a discharge, or The disability ceases to exist. Explanation I Applies to all kinds of liability , including liability relating to immovable property. Explanation II In a Hindu Undivided Family (HUF) governed by Mitakshara law: The Manager (Karta) is deemed capable of giving discharge without the concurrence of other members only if he is i...

Limitation Act Notes - 2

PART II: LIMITATION OF SUITS, APPEALS, AND APPLICATIONS 3. Bar of Limitation 3.1 What is the Bar of Limitation? Any lawsuit, appeal, or application must be filed within a time limit called the "prescribed period." If filed after this period, the case will be dismissed, even if the opposing party (defendant) does not raise the issue of delay. 3.2 When is a Suit Considered Filed? For ordinary cases: When the complaint (plaint) is given to the correct court officer. For people unable to pay court fees (paupers): When they apply for permission to sue as paupers. For cases against companies being wound up: When the claim is first sent to the official liquidator. 3.3 Set-Off and Counterclaim as Separate Suits A "set-off" (defendant’s claim against plaintiff) is considered filed on the same day as the original suit. A "counterclaim" is considered filed when it is actually made in court. 3.4 Applications in High Court An applica...

Contract Act Notes 2

Essential Elements of Contract and Free Consent under Indian Contract Law 1. Introduction to Contract Law A contract as per Section 2(h) of the Indian Contract Act, 1872, is “an agreement enforceable by law.” It is a foundational pillar of commercial and social relations, facilitating legally binding promises and cooperation between parties. Understanding the essential elements of a valid contract and the importance of free consent is crucial to determine enforceability and protect parties from unfair practices. 2. Essential Elements of a Valid Contract For an agreement to become a legally enforceable contract, the following key essential elements must be present: 2.1 Offer and Acceptance (Sections 3 to 9) Offer (Proposal): A clear, definite, and communicated proposal made by one party showing willingness to contract on certain terms. Acceptance: An unconditional assent to the terms of the offer by the offeree communicated to the offeror. Mutual consent: The “mee...