Professional Documents
Culture Documents
Dishonour of Cheques and Wrongful Dishonour by Banks
Dishonour of Cheques and Wrongful Dishonour by Banks
Mithelesh
BA0130038
Introduction
• A cheque as a negotiable instrument has been
clearly defined under Section 6 of the Negotiable
instrument Act.
"a bill of exchange drawn on a specified banker and
not expressed to be payable otherwise than on
demand".
• Advent of Cheques have give a new dimensions
to the commercial world
• Since business activities have increased, the
attempt to commit crimes and indulge in
activities for making easy money have also
increased
Dishonour of Cheques
• "Dishonour" means "to refuse or neglect to
accept or pay when duly presented for
payment of a bill of exchange or a promissory
note or draft on a banker.
• Dishonour Of Cheques have been dealt in
Sec.138 of the NI Act,1881.
• Section 138 is dealing with dishonour in case
of insufficient of funds
Sec.138 Of NI Act,1881
Ingredients
• Cheque drawn on a bank account.
• Issue of Cheque in discharge of a
debt or liability .
If the above conditions are fulfilled,
then this section will be attracted
irrespective of the mental conditions.
Exclusion Of Mens Rea and Cause of
Action
• For committing an offence under Section 138 of the
Act "mens rea" is not an essential ingredient.
Mahendra A.Dadia V. State of Maharashtra (2000) (1)
Civil Court Cases 438 (Bom.)