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by Bhashyam & Adiga Revised by Anand Sanjay M. Nuli • Saket Gogia
List Price: Rs. 2795
BharatLaws Member Price: Rs. 2515 ( 10% Discount )
Publisher: Bharat Law House Pvt. Ltd.
Edition: 25th edn., 2024
Year: 2024
ISBN: 978-81-7737-293-9
Pages: 1488
Availability: In Stock.




Section Page No.

1 Short title, local extent, saving of usages relating to hundis, etc. Commencement

2 Repeal of enactments (Repealed)

3 Interpretation clause "Banker"


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

Section Pa

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


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


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


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


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


Of discharge from liability on Notes, Bills and Chequ

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


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


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


Of reasonable time

105 Reasonable time

106 Reasonable time of giving notice of dishonour

107 Reasonable time for transmitting such notice


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


Of compensation

117 Rules as to compensation


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


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



Of bills in sets

132 Set of bills

133 Holder of first acquired part entitled to all


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


Of penalties in case of dishonour of certain cheques finsufficiency 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 Bird's eye view

6 Non-compliance with the provision

7 Scope

8 Nature

9 Applicability

10 Applicability of provisions to cheques issued before 1-4-1989

11 Issue of cheque is not an offence

12 Ingredients of the offence

13 Dishonour of cheque issued for discharge of legally enforceable debt/ liability

14 Section 138 and Criminal Law

15 Power of courts

16 Interference by High Court in disputed questions of fact

17 Bailable offence

18 Trial of offence: Summary procedure

19 Directions for Summary Trial

20 Defence evidence

21 'Month', meaning of

22 Presentation of cheques any number of times during validity period

23 Filing of a civil suit

24 Arbitration proceedings

25 Prosecution for cheating: Not barred

26 Prosecution based on successive dishonour of cheque

27 Filing of a complaint

28 Condonation of delay in filing complaint

29 Place of filing complaint,

30 Locus standi to file complaint

31 Verification of complaint

32 Cause of action

33 Complaint not signed by complainant

34 Permissibility for the substitution of complainant

35 Deficit Court Fee

36 Sole proprietorship concern

37 Complaint by company

38 Delegation of power of attorney

39 Power of Attorney to witness transaction

40 Complaint by Power of Attorney Holder

41 Complaint, maintainability

42 Reasons for return

43 'Refer to drawer', meaning of

44 ‘Such person shall be deemed to have committed an offence’

45 Infirmity in return memo

46 Payment of cheque stopped by drawer

47 Propriety of order of issue process

48 Bank account closed

49 Exceeds arrangement: Dishonour on ground of

50 Insufficient balance

51 Cheque reported stolen

52 Alteration in date and drawer's signature differs

53 Drawer's signature incomplete

54 Drawer's signature denial

55 Non-MICR cheque

56 Recourse to proceedings

57 Making endorsement 'sans recourse' on cheque

58 Bank documents: Admissibility in evidence

59 Exclusion of mens rea

60 Cheque drawn by a person

61 Cheque issued in illegal transaction

62 Liability of director

63 Liability of drawer of cheque

64 Cheque issued by authorised signatory: Liability

65 Vicarious liability

66 Cheque issued by mandate holder: Liability

67 Forfeiture of right of holder/payee

68 Self drawn cheque

69 Pay Order, dishonour of

70 Post-dated cheques, dishonour of, effect

71 An account maintained with a banker

72 Examination of Banker

73 Joint bank account operated by 'Either or Survivor': Liability

74 Joint Liability, existence of

75 Banker

76 Undated cheque

77 Any debt or other liability: Legally enforceable liability

78 Dishonour of cheque issued in pursuance of the agreement to sell

79 Debt/Liability: Proof of

80 Existence of debt or liability on the date of cheque

81 Time-barred debt

82 Discharge of liability in excess of liability incurred

83 Legally enforceable liability

84 Burden of proof

85 Presumption

86 Modification of discharge of liability

87 Part payment

88 Other liabilities

89 Cheque received as guarantee or security

90 Chit funds

91 Uncertain future liabilities

92 Proceedings against guarantor: Maintainable

93 Blank cheque issued as security

94 Blank cheque

95 Misuse of blank cheque: Expert opinion

96 Cheque issued as collateral security

97 Liability need not be of drawer

98 Discharge of debt of wife

99 Discharge of debt of father

100 Death of drawer of cheque

101 Holder in due course

102 Drawer alone can be prosecuted

103 Cheque discounting facility with bank: Liability

104 Offence

105 'Failure' to make payment

106 Cognizance of offence

107 Quashing of cognizance

108 Without prejudice to any other provision of this Act

109 Material alterations in cheque

110 Typographical error

111 Clubbing of complaints

112 Punishment

(a) Prior to 6-2-2003

(b) On and from 6-2-2003

113 Sentences to run concurrently: Powers of Court

114 Sentence of imprisonment till rising of court

115 Sentence of imprisonment modified

116 Suspension of sentence

117 Penalty provision created by legal fiction

118 Provision, not for compensation

119 Compensation

120 Mode of recovery of fine and compensation

121 Compensation, reduced

122 Sentence of fine and compensation

123 Inadequacy of sentence

124 Payment of interest on award of compensation

125 Default sentence

126 Compounding of offence

127 Acquittal

128 Propriety of order of acquittal

129 Appeal against acquittal

130 Conviction

131 Release on probation

132 Pendency of parallel proceedings

133 Lok adalats

134 Presentation of cheque

135 Territorial jurisdiction

136 Transfer of cases

137 Compliance of procedure of trial on transfer of a Magistrate

138 Provisos

(1) Period for presentment: clause (a)

(2) Notice of demand for payment: clause (b)

139 Issuance of notice

140 Handwritten notice

141 Construction of Proviso

142 Demand notice: Limitation period

143 Notice to company sufficient

144 Notice to director itself

145 Form or format of notice

146 Permissibility for the use of printed format

147 Notice not signed by Advocate: Validity

148 Contents of notice

149 Notice sent under certificate of posting

150 Notice: Service of

151 Fresh notice

152 Constructive service of notice

153 Deemed service of notice

154 Demand notice sent by registered post

155 Demand notice: Burden of proof of service

156 Copy of demand notice: Admissibility

157 Omnibus demand in notice

158 Period for payment

159 Date of service of statutory notice

160 Period for filing of complaint

161 Computation of period of limitation of notice

162 Computation of period of one month for filing of complaint

163 Extension of limitation period

164 Averment in complaint

165 "Date of receipt" to be understood as "date of knowledge of receipt" of the notice

166 Proof of service of demand notice

167 Receipt of notice by wife of accused drawer

168 Notice, interpretation of

169 Validity of demand notice

170 Exact date of issue of notice or date of service of the notice in the complain

171 Words 'said amount of money', meaning

172 Notice of demand: Cheque Number

173 Dishonour of cheque for higher amount

174 Prior discharge

175 Consolidated notice for more than one cheques: Validity

176 Premature complaint

177 Subsequent events: Consequence of part payment by drawer after issue of notice

178 Deposit by accused of entire amount during trial

179 Single complaint in respect of more than one dishonoured cheque

180 Summoning of accused

181 Examination of complainant

182 Production of additional evidence

183 Examination of witnesses

184 Dismissal of complaint

185 Dismissal of complaint for non-appearance of complainant/counsel

186 Personal attendance of accused

187 Death of payee

188 Death of drawer

189 Death of drawer-partner

190 Death of complainant

191 Discharge of accused

192 Non-mention of necessary ingredients in pre-summoning statement

193 No grant of injunction

194 Private complaint by accused: Maintainability

195 Drawer declared insolvent

196 Delay in disposal of cases: Practice and procedure

197 Additional evidence: Permissibility

198 Quashing of complaint

199 Quashing of proceedings

200 Simultaneous proceedings under Insolvency and Negotiable Instruments A

201 Propriety of non-consideration of issue of limitation

202 Writ jurisdiction of High Court

203 Nature and extent of presumption: Standard of proof

204 Rejection of application for sending cheque to FSL

205 Money lending transaction

206 Finding of civil court, effect of

207 Application for opinion of handwriting export

208 Preponderance of probabilities

209 Power of successor Magistrate

210 Revision, scope

211 Remand of case

212 Instruction, while working abroad

213 Filing of case against directors

214 Cheques whether supported by consideration

215 Both criminal proceedings and civil remedies can be pursued

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

15 Opinion of handwriting expert

140 Defence which may not be allowed in any prosecution u/s 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 Summon upon a Company: Mode

16 Dishonour of cheque by a Society

17 Trustees of a trust

18 Hindu Undivided Family (HUF)

19 Section 141, sub-section (1)

(a) Every person incharge

(b) Vicarious liability

(c) Quashing of prosecution

(d) As well as the company

20 Post-dated cheques

21 Demand notice

22 Section 141 — First proviso — Meaning of

23 Nominated directors not liable for prosecution — Second proviso

24 Section 141(2): With the consent or connivance of, or is attributable to, any neglect on the part of

25 Section 141(2): Director — Manager or other officer — Meaning of

26 Vacation of office: Quashing of prosecution

27 Vicarious liability: Prosecution of Director: Sustainability

28 Winding up proceedings pending

29 Explanation (b)

30 Company not prosecuted

31 Proceeding against company and its Managing Director

32 Companies under winding up

33 Companies under insolvency proceedings

34 Sick industrial companies

35 Duty of Courts: Frivolous litigation

36 Company changing name

37 Unregistered Partnership firm

38 Commission of offence

142 Cognizance of offences

1 Scope

2 Proviso defers 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 1090

29 Defective notice 1091

30 Question of limitation 1092

(a) With effect from 6-2-2003 1092

(b) Prior to 6-2-2003 1092

31 Prospective Operation 1092

32 Successive presentation of cheque: Cause of action: Computation of 1094

33 Importance of date seal of court on copy of complaint to be served on accused 1095

34 Magistrate cannot refer the complaint to police for investigation 1096

35 Nature of enquiry before issue of process 1096

36 Recommended procedure for trial of section 138 complaint 1096

37 Non-applicability of section 29(2) of the Cr PC 1097

38 When punishment more severe than Magistrate empowered to give warranted 1097

39 Power of Court 1097

40 Power of attorney holder 1097

41 Territorial jurisdiction settled by the insertion of section 142(2) 1098

42 Mode of delivery 1099

142A Validation for transfer of pending cases 1099

1 Transfer of pending cases 1100

2 Refiling of complaint 1101

143 Power of Court to try cases summarily 1101

1 Trial of offence: Summary procedure 1102

2 Summary trial of cases 1103

3 Dismissal of complaint on non-appearance 1104

4 Recording of reasons: Requirement of 1105

5 Summary trial provisions under the Code of Criminal Procedure 1105

6 Sentence of imprisonment or fine 1107

7 When the Magistrate may not hold a summary trial 1108

8 Day to day trial 1108

9 Trials to conclude within six months 1108

10 Directions to courts, for speedy disposal of dishonour of cheque cases 1109

143A Power to direct interim compensation 1110

1 Object 1111

2 Section 143A is prospective in operation 1111

3 Power to direct interim compensation 1111

4 Amount of interim compensation 1113

5 Payment of interim compensation 1113

6 Refund of interim compensation with interest in case of acquittal 1113

7 Recovery of interim compensation 1113

8 Provision, whether directory or mandatory 1114

9 Interim compensation to be reduced from fine imposed 1114

10 Recording reasons — Necessary 1114

144 Mode of service of summons 1115

1 Service of summons by speed post/courier 1115

2 Refusal to take delivery of summons, effect of 1115

145 Evidence on affidavit 1117

1 Evidence on affidavit 1117

2 Section 145 not to be dissected into pre-summoning and post-summoning stage of trial 1118

3 Section 145 is an enabling provision 1119

4 Scope and nature of provision: Overriding effect 1121

5 Right to fair trial 1122

6 Amendment retrospective or prospective 1123

7 Territorial jurisdiction 1124

146 Bank's slip prima facie evidence of certain facts 1125

147 Offences to be compoundable 1125

1 Compounding of offence 1125

2 Right of accused to tender his evidence on affidavit 1126

3 Procedure to be followed: Applicability of section 320, Cr PC 1127

4 Reference of parties to mediation 1130

5 Permission from Court 1133

6 Deposit of 'Amount due' in Court 1133

7 Mere compromise and an action of compounding a crime: Distinction 1134

8 Payment of Compensation 1134

148 Power of Appellate Court to order payment pending appeal against conviction 1135

1 Object 1136

2 Power of Appellate Court to order payment pending appeal against conviction 1136


3 Provisions applicable even in case where criminal

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