Bharathadityalu

Sec 138 and 139 under NI act Section 138: Dishonour of Cheque for Insufficiency, etc., of Funds This section deals with the criminal offense of cheque dishonour (bouncing). If a cheque is returned unpaid due to insufficient funds in the drawer's account or for other specified reasons, the drawer can face legal action. Punishment for Section 138: If a person is found guilty of an offence under Section 138, they can be punished with: Imprisonment: A term of imprisonment which may extend to two years, or Fine: A fine which may extend to twice the amount of the cheque, or Both: Both imprisonment and fine. Key points related to Section 138: Criminal Offence: Cheque bounce under Section 138 is a criminal offense, providing a strong deterrent. Conditions for Offence: For an offence to be made out, certain conditions must be met: The cheque must have been issued for the discharge of a legally enforceable debt or liability. The cheque must be presented to the bank within its period of valid...

  Whether Issuing a Blank Cheque under Indian Law: Legal Validity, Section 138, and Judicial Precedents Issuing a blank cheque , where only the signature is affixed and all other particulars are left blank, is a common practice in many business and personal transactions in India. While this might seem risky at first glance, Indian law has laid down clear principles regarding the legality and implications of such instruments. Is Issuing a Blank Cheque Legal? Yes, issuing a blank cheque is legally valid if the cheque is signed and voluntarily handed over to the payee , with authorization to fill in the remaining details, such as the amount and date. This practice is covered under Section 20 of the Negotiable Instruments Act, 1881 , which recognizes the authority of a holder in due course to complete an inchoate instrument. Relevance of Section 138 of the Negotiable Instruments Act Section 138 deals with the dishonour of cheques due to insufficiency of funds or stop payment instructio...