Sanhita for lawyers
Indian law, answered with its sources.
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A question about Section 138 of the Negotiable Instruments Act, answered in Sanhita with the Act and the cases beside it.
Sanhita reads over 83 million Indian legal records: High Court and Supreme Court judgments, Central Acts, tribunal orders and regulator circulars. Ask in your own words. The answer comes back with every source beside it, and an answer it cannot support is held back.
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Sources
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Direct answer
A complaint under Section 138 of the Negotiable Instruments Act, 1881, is maintainable when a cheque drawn for the discharge of a debt or other liability is returned unpaid due to insufficient funds or exceeding the arranged amount. This maintainability is subject to three mandatory conditions: timely presentation of the cheque, issuance of a written demand notice, and the drawer’s failure to make payment within fifteen days of receiving the notice.
Statutory basis
Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid…
Leading authority
M/s. Rahul Builders v. M/s. Arihant Fertilizers & Chemical & Anr (2007, Supreme Court), on serving a proper notice.
The Negotiable Instruments Act, 1881
Section 138, from India Code
Dishonour of cheque for insufficiency, etc., of funds in the account.
Checks this answer passed
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- Every citation resolves to a record Sanhita holdscite_resolves
- No opinion or advice phrasingno_banned_phrases
- Most sentences are tied to a sourcegrounding_floor
- Every case named appears in the sourcesscope_check
- Every section cited is in the sources or the questionsection_check
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