CHAPTER I
Preliminary
1 Short title, local extent, saving of usages relating to hundis, etc. Commencement
2 Repeal of enactments (Repealed)
3 Interpretation clause "Banker"
CHAPTER II
Of notes, bills and cheques
4 "Promissory note"
5 "Bill of Exchange"
6 "Cheque"
7 "Drawer", "Drawee", "Drawee in case of need", "Acceptor", "Acceptor for honour", "Payee"
8 "Holder"
9 "Holder in due course"
10 "Payment in due course"
11 Inland instrument
12 Foreign instrument
13 Negotiable instrument
14 Negotiation
15 Indorsement
16 Indorsement "in blank" and "in full", "indorsee"
17 Ambiguous instruments
18 Where amount is stated differently in figures and words
19 Instruments payable on demand
20 Inchoate stamped instruments
21 "At Sight", "On Presentment", "After Sight"
22 "Maturity" Days of grace
23 Calculating maturity of bill or note payable so many months after date or sight
24 Calculating maturity of bill or note payable so many days after date or sight
25 When day of maturity is a holiday
CHAPTER III
Parties to Notes, Bills and Cheques
26 Capacity to make, etc., promissory notes, etc.
27 Agency
28 Liability of agent signing
29 Liability of legal representative signing
30 Liability of drawer
31 Liability of drawee of cheque
32 Liability of maker of note and acceptor of bill
33 Only drawee can be acceptor except in need or for honour
34 Acceptance by several drawees not partners
35 Liability of indorser
36 Liability of prior parties to holder in due course
37 Maker, drawer and acceptor principals
38 Prior party a principal in respect of each subsequent party
39 Suretyship
40 Discharge of indorser's liability
41 Acceptor bound although indorsement forged
42 Acceptance of bill drawn in fictitious name
43 Negotiable instrument made, etc., without consideration
44 Partial absence or failure of money consideration
45 Partial failure of consideration not consisting of money
45A Holder's right to duplicate of lost bill
CHAPTER IV
Of Negotiation
46 Delivery
47 Negotiation by delivery
48 Negotiation by indorsement
49 Conversion of indorsement in blank into indorsement in full
50 Effect of indorsement
51 Who may negotiate
52 Indorser who excludes his own liability or makes it conditional
53 Holder deriving title from holder in due course
54 Instrument indorsed in blank
55 Conversion of indorsement in blank into indorsement in full
56 Indorsement for part of sum due
57 Legal representative cannot by delivery only negotiate instrument indorsed by deceased
58 Instrument obtained by unlawful means or for unlawful consideration
59 Instrument acquired after dishonour or when overdue, Accommodation note or bill
60 Instrument negotiable till payment or satisfaction
CHAPTER V
Of Presentment
61 Presentment for acceptance
62 Presentment of promissory note for sight
63 Drawee's time for deliberation
64 Presentment for payment
65 Hours for presentment
66 Presentment for payment of instrument payable after date or sight
67 Presentment for payment of promissory note payable by instalments
68 Presentment for payment of instrument payable at specified place and not elsewhere
69 Instrument payable at specified place
70 Presentment where no exclusive place specified
71 Presentment when maker, etc., has no known place of business or residence
72 Presentment of cheque to charge drawer
73 Presentment of cheque to charge any other person
74 Presentment of instrument payable on demand
75 Presentment by or to agent, representative of deceased or assignee of insolvent
75A Excuse for delay in presentment for acceptance or payment
76 When presentment unnecessary
77 Liability of banker for negligently dealing with bill presented for payment
CHAPTER VI
Of Payment and Interest
78 To whom payment should be made
79 Interest when rate specified
80 Interest when no rate specified
81 Delivery of instrument on payment or indemnity in case of loss
CHAPTER VII
Of discharge from liability on Notes,
Bills and Cheques
82 Discharge from liability — (a) by cancellation; (b) by release; (c) by payment
83 Discharge by allowing drawee more than forty-eight hours to accept
84 When cheque not duly presented and drawer damaged thereby
85 Cheque payable to order
85A Drafts drawn by one branch of a bank on another payable to order
86 Parties not consenting discharged by qualified or limited acceptance
87 Effect of material alteration, Alteration by indorsee
88 Acceptor or indorser bound notwithstanding previous alteration
89 Payment of instrument on which alteration is not apparent
90 Extinguishment of rights of action on bill in acceptor's hands
CHAPTER VIII
Of Notice of Dishonour
91 Dishonour by non-acceptance
92 Dishonour by non-payment
93 By and to whom notice should be given
94 Mode in which notice may be given
95 Party receiving must transmit notice of dishonour
96 Agent for presentment
97 When party to whom notice given is dead
98 When notice of dishonour is unnecessary
CHAPTER IX
Of Noting and Protest
99 Noting
100 Protest, Protest for better security
101 Contents of protest
102 Notice of protest
103 Protest for non-payment after dishonour by non-acceptance
104 Protest of foreign bills
104A When noting equivalent to protest
CHAPTER X
Of reasonable time
105 Reasonable time
106 Reasonable time of giving notice of dishonour
107 Reasonable time for transmitting such notice
CHAPTER XI
Of acceptance and payment for honour and
reference in case of need
108 Acceptance for honour
109 How acceptance for honour must be made
110 Acceptance not specifying for whose honour it is made
111 Liability of acceptor for honour
112 When acceptor for honour may be charged
113 Payment for honour
114 Right of payer for honour
115 Drawee in case of need
116 Acceptance and payment without protest
CHAPTER XII
Of compensation
117 Rules as to compensation
CHAPTER XIII
Special rules of evidence
118 Presumptions as to negotiable instruments — (a) of consideration; (b) as to date; (c) as to time of acceptance; (d) as to time of transfer; (e) as to order of indorsement; (f) as to stamps; (g) that holder is a holder in due course
119 Presumption on proof of protest
120 Estoppel against denying original validity of instrument
121 Estoppel against denying capacity of payee to indorse
122 Estoppel against denying signature or capacity of prior party
CHAPTER XIV
Of crossed cheques
123 Cheque crossed generally
124 Cheque crossed specially
125 Crossing after issue
126 Payment of cheque crossed generally, Payment of cheque crossed specially
127 Payment of cheque crossed specially more than once
128 Payment in due course of crossed cheque
129 Payment of crossed cheque out of due course
130 Cheque bearing "not negotiable"
131 Non-liability of banker receiving payment of cheque
131A Application of chapter to drafts
CHAPTER XV
Of bills in sets
132 Set of bills
133 Holder of first acquired part entitled to all
CHAPTER XVI
Of international law
134 Law governing liability of maker, acceptor or indorser of foreign instrument
135 Law of place of payment governs dishonour
136 Instrument made, etc, out of India but in accordance with the law of India
137 Presumption as to foreign law
CHAPTER XVII
Of penalties in case of dishonour of certain cheques for insufficiency of funds in the accounts
138 Dishonour of cheque for insufficiency, etc, of funds in the account
1 Competence of the Parliament
2 Statement of objects and reasons
3 Object
4 Salient features
5 Non- compliance with the provision
6 Scope
7 Nature
8 Applicability
9 Applicability of provisions to cheques issued before 1-4-1989
10 Issue of cheque is not an offence
11 Ingredients of the offence
12 Dishonour of cheque issued for discharge of legally enforceable debt/liability
13 Section 138 and Criminal Law
14 Power of courts
15 Interference by High Court in disputed questions of fact
16 Bailable offence
17 Trial of offence: Summary procedure
18 Directions for Summary Trial
19 Defence evidence
20 Month', meaning of
21 Presentation of cheques any number of times during validity period
22 Filing of a civil suit
23 Arbitration proceedings
24 Prosecution for cheating: Not barred
25 Prosecution based on successive dishonour of cheque
26 Filing of a complaint
27 Condonation of delay in filing complaint
28 Place of filing complaint
29 Locus standi to file complaint
30 Verification of complaint
31 Cause of action
32 Complaint not signed by complainant
33 Permissibility for the substitution of complainant
34 Deficit Court Fee
35 Sole proprietorship concern
36 Complaint by company
37 Delegation of power of attorney
38 Power of Attorney to witness transaction
39 Complaint by Power of Attorney Holder
40 Complaint, maintainability
41 Reasons for return
42 'Refer to drawer', meaning of
43 ‘Such person shall be deemed to have committed an offence’
44 Payment of cheque stopped by drawer
45 Propriety of order of issue process
46 Bank account closed
47 Exceeds arrangement: Dishonour on ground of
48 Insufficient balance
49 Cheque reported stolen
50 Alteration in date and drawer's signature differs
51 Drawer's signature incomplete
52 Drawer's signature denial
53 Recourse to Proceedings
54 Making endorsement 'sans recourse' on cheque
55 Bank documents: Admissibility in evidence
56 Exclusion of mens rea
57 Cheque drawn by a person
58 Cheque issued in illegal transaction
59 Liability of director
60 Liability of drawer of cheque
61 Cheque issued by authorised signatory: Liability
62 Vicarious liability
63 Cheque issued by mandate holder: Liability
64 Forfeiture of right of holder/payee
65 Self drawn cheque
66 Pay Order, dishonour of
67 Post-dated cheques, dishonour of, effect
68 An account maintained with a banker
69 Joint bank account operated by 'Either or Survivor': Liability
70 Banker
71 Undated cheque
72 Any debt or other liability: Legally enforceable liability
73 Debt/Liability: Proof of
74 Existence of debt or liability on the date of cheque
75 Time-barred debt
76 Discharge of liability in excess of liability incurred
77 Legally enforceable liability
78 Burden of proof
79 Presumption
80 Modification of discharge of liability
81 Part payment
82 Other liabilities
83 Cheque received as guarantee or security
84 Chit funds
85 Uncertain future liabilities
86 Proceedings against guarantor: Maintainable
87 Blank cheque issued as security
88 Misuse of blank cheque: Expert opinion
89 Cheque issued as collateral security
90 Liability need not be of drawer
91 Discharge of debt of wife
92 Discharge of Debt of Father
93 Death of drawer of cheque
94 Holder in due course
95 Drawer alone can be prosecuted
96 Cheque discounting facility with bank: Liability
97 Offence
98 Failure' to make payment
99 Cognizance of offence
100 Quashing of Cognizance
101 Without prejudice to any other provision of this Act
102 Material alterations in cheque
103 Typographical error
104 Clubbing of complaints
105 Punishment
(a) Prior to 6-2-2003
(b) On and from 6-2-2003
106 Sentences to run concurrently: Powers of Court
107 Sentence of imprisonment till rising of court
108 Suspension of sentence
109 Penalty provision created by legal fiction
110 Provision, not for compensation
111 Compensation
112 Mode of recovery of fine and compensation
113 Compensation, reduced
114 Sentence of fine and compensation
115 Inadequacy of sentence
116 Payment of interest on award of compensation
117 Default sentence
118 Compounding of offence
119 Acquittal
120 Propriety of order of acquittal
121 Conviction
122 Release on probation
123 Pendency of parallel proceedings
124 Lok adalats
125 Presentation of cheque
126 Territorial jurisdiction
127 Transfer of cases
128 Compliance of procedure of trial on transfer of a Magistrate
129 Provisos
(1) Period for presentment: clause (a)
(2) Notice of demand for payment: clause (b)
130 Issuance of notice
131 Handwritten notice
132 Construction of Proviso
133 Demand notice: Limitation period
134 Notice to company sufficient
135 Notice to director itself
136 Form or format of notice
137 Permissibility for the use of printed format
138 Notice not signed by Advocate: Validity
139 Contents of notice
140 Notice sent under certificate of posting
141 Notice: Service of
142 Fresh notice
143 Constructive service of notice
144 Deemed service of notice
145 Demand notice sent by registered post
146 Demand notice: Burden of proof of service
147 Copy of demand notice: Admissibility
148 Omnibus Demand in Notice
149 Period for payment
150 Date of service of statutory notice
151 Period for filing of complaint
152 Computation of period of limitation of notice
153 Computation of period of one month for filing of complaint
154 Extension of limitation period
155 Averment in complaint
156 "Date of receipt" to be understood as "date of knowledge of receipt" of the notice
157 Proof of service of demand notice
158 Receipt of notice by wife of accused drawer
159 Notice, interpretation of
160 Validity of demand notice
161 Exact date of issue of notice or date of service of the notice in the complaint
162 Words 'said amount of money', meaning
163 Notice of demand: Cheque Number
164 Dishonour of cheque for higher amount
165 Prior discharge
166 Consolidated notice for more than one cheques: Validity
167 Premature complaint
168 Subsequent events: Consequence of part payment by drawer after issue of notice
169 Deposit by accused of entire amount during trial
170 Single complaint in respect of more than one dishonoured cheque
171 Summoning of accused
172 Examination of complainant
173 Production of additional evidence
174 Examination of witnesses
175 Dismissal of complaint
176 Dismissal of complaint for non-appearance of complainant/counsel
177 Personal attendance of accused
178 Death of payee
179 Death of drawer
180 Death of drawer-partner
181 Death of complainant
182 Discharge of accused
183 Non-mention of necessary ingredients in pre-summoning statement
184 No grant of injunction
185 Private complaint by accused: Maintainability
186 Drawer declared insolvent
187 Delay in disposal of cases: Practice and procedure
188 Additional evidence: Permissibility
189 Quashing of complaint
190 Quashing of proceedings
191 Propriety of non-consideration of issue of limitation
192 Writ jurisdiction of High Court
193 Nature and extent of presumption: Standard of proof
194 Rejection of application for sending cheque to FSL
195 Money lending transaction
196 Application for Opinion of handwriting export
197 Preponderance of probabilities
198 Power of successor Magistrate
199 Revision, scope
200 Remand of case
201 Instruction, while working abroad
202 Filing of case against directors
203 Cheques whether supported by consideration
139 Presumption in favour of holder
1 Presumption against the drawer,
2 Scope
3 Termination of dealership due to dishonour of cheque
4 Nature and extent of presumption
5 Shall be presumed
6 Propriety of presumption
7 Unless the contrary is proved
8 Rebuttal evidence: Quantum of
9 Holder of a cheque as referred to in section 138
10 Rebuttal plea
11 Non-rebuttal of presumption
12 Presumption available to payee and holder
13 Discharge in whole or in part of any debt or other liability
14 Presumption of existence of legally enforceable debt
140 Defence which may not be allowed in any prosecution under section 138
1 Scope
2 Exclusion of mens rea
3 It shall not be
4 Reason to believe
5 'Issuance' of cheque
6 Cheque may be dishonoured on presentation
7 Closure of account prior to date of drawal of cheque
141 Offences by companies
1 Offences by companies
2 Non-banking financial companies
3 Scope
4 “At the time the offence was committed”, scope of
5 Complaint, maintainability
6 Non-incorporation of particulars
7 Reliance on affidavit
8 Validity
9 Expression 'Company': Meaning and scope
10 Expression "other association of individuals"
11 Status of a sole proprietorship concern
12 Liabilities of a firm and its partners
13 Joint family business
14 Legal liabilities of a company
15 Trustees of a trust
16 Hindu Undivided Family (HUF)
17 Section 141, sub-section (1)
(a) Every person incharge
(b) Vicarious liability
(c) Quashing of prosecution
(d) As well as the company
18 Post-dated cheques
19 Demand notice
20 Section 141 — First proviso — Meaning of
21 Nominated directors not liable for prosecution — Second proviso
22 Section 141(2): With the consent or connivance of, or is attributable to, any neglect on the part of
23 Section 141(2): Director — Manager or other officer — Meaning of
24 Vacation of office: Quashing of prosecution
25 Vicarious liability: Prosecution of Director: Sustainability
26 Winding up proceedings pending
27 Explanation (b)
28 Company not prosecuted
29 Proceeding against company and its Managing Director
30 Companies under winding up
31 Sick industrial companies
32 Duty of Courts: Frivolous litigation
33 Company changing name
142 Cognizance of offences
1 Scope
2 Proviso differs prosecution
3 Notwithstanding anything contained in Code of Criminal Procedure
4 Filing of complaint: Legal requirements
5 Cognizance of the offence: Section 142(1)(a)
6 Complaint by payee or holder in due course
7 Fresh complaint remedy
8 Complaint by company
9 Complaint by co-operative society
10 Complaint by Government Company
11 Sole proprietorship firm
12 Partnership firm
13 Complaint by unregistered firm
14 Limitation for taking cognizance
15 Cheques issued in favour of bank
16 Complaint in writing: Section 142(1)(b)
17 Issuing of fresh demand notice
18 Complaint filed by power of attorney holder
19 Ingredients of offence
20 Complaint filed by advocate
21 Complaint sent by post
22 "Within one month of the date on which the cause of action arises"
23 Quashing of prosecution
24 Sufficient cause for not making a complaint within time
25 Amendment prospective, not retrospective
26 Premature complaint
27 Jurisdiction of the court: Section 142(1)(c)
28 Cause of action
29 Defective notice
30 Question of limitation
(a) With effect from 6-2-2003
(b) Prior to 6-2-2003
31 Prospective operation
32 Successive presentation of cheque: Cause of action: Computation of
33 Importance of date seal of court on copy of complaint to be served on accused
34 Magistrate cannot refer the complaint to police for investigation
35 Nature of enquiry before issue of process
36 Recommended procedure for trial of section 138 complaint
37 Non-applicability of section 29(2) of the Cr PC
38 When punishment more severe than Magistrate empowered to give warranted
39 Power of Court
40 Power of attorney holder
41 Territorial jurisdiction settled by the insertion of section 142(2)
142A Validation for transfer of pending cases
143 Power of Court to try cases summarily
1 Trial of offence: Summary procedure
2 Summary trial of cases
3 Recording of reasons: Requirement of
4 Summary trial provisions under the Code of Criminal Procedure
5 Sentence of imprisonment or fine
6 When the Magistrate may not hold a summary trial
7 Day to day trial
8 Trials to conclude within six months
9 Directions to courts, for speedy disposal of dishonour of cheque cases
144 Mode of service of summons
145 Evidence on affidavit
1 Evidence on affidavit
2 Section 145 not to be dissected into pre-summoning and post-summoning stage of trial
3 Section 145 is an enabling provision
4 Scope and nature of provision: Overriding effect
5 Right to fair trial
6 Amendment retrospective or prospective
7 Territorial jurisdiction
146 Bank's slip prima facie evidence of certain facts
147 Offences to be compoundable
1 Compounding of offence
2 Right of accused to tender his evidence on affidavit
3 Procedure to be followed: Applicability of section 320, Cr PC
4 Permission from Court
5 Deposit of 'Amount due' in Court
6 Mere compromise and an action of compounding a crime: Distinction
Annexure 1 Specimen Notices
SPECIMEN 1 Proforma of a notice in connection with payment of arrears of salary
SPECIMEN 2 Proforma of a notice in connection with rendering services
SPECIMEN 3 Proforma of a notice on behalf of a business firm for the amount outstanding on account of supply of goods
SPECIMEN 4 Proforma of a notice on behalf of the supplier of goods
SPECIMEN 5 Proforma of a notice on account of purchases made on credit
SPECIMEN 6 Proforma of a notice on behalf of a Bank
SPECIMEN 7 Proforma of a notice on behalf of a company
SPECIMEN 8 Proforma of a notice on behalf of a Pvt. Ltd. Company to a Limited Company on account of non-payment for the supply of goods
Annexure 2 Specimen Complaints
SPECIMEN 1 Proforma of a complaint for supply of goods on credit
SPECIMEN 2 Proforma of a complaint on behalf of a sole proprietorship concern
SPECIMEN 3 Proforma of a complaint on behalf of a Pvt. Ltd. Co. against a Limited Company
SPECIMEN 4 Proforma of a complaint by a leasing company
SPECIMEN 5 Proforma of a complaint on behalf of a Ltd. Company against another Ltd. Company
SPECIMEN 6 Proforma of a complaint on behalf of a partnership concern
SPECIMEN 7 Proforma of a complaint on behalf of a creditor against a debtor
SPECIMEN 8 Proforma of a complaint on behalf of the sole proprietorship concern
Annexure 3 The Negotiable Instruments (Amendment) Act, 2015
Annexure 4 The Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002
Annexure 5 Bankers' Books Evidence Act, 1891 [As amended by the Negotiable Instruments (Amendment & Miscellaneous Provisions) Act, 2002]
APPENDIX A Agreements controlling negotiable instruments
APPENDIX B Payment by bills, notes and cheques
APPENDIX C Suits on negotiable instruments
APPENDIX D Bills of Exchange Act, 1882
APPENDIX E The Cheques Act, 1957
APPENDIX F Uniform Commercial Code
SUBJECT INDEX