Tag: Cheque Bounce Case

No Hiding Criminal Past: Supreme Court Says Undisclosed Conviction Makes Election Null & Void
Supreme Court

No Hiding Criminal Past: Supreme Court Says Undisclosed Conviction Makes Election Null & Void

The Supreme Court held that a candidate's non-disclosure of a subsisting criminal conviction in the mandatory election affidavit, as required under Rule 24-A of the relevant rules, constitutes a fundamental breach. This failure vitiates the nomination process itself, rendering the election void under Section 22(1)(d) of the M.P. Municipalities Act, as it violates the voters' constitutional right to informed choice under Article 19(1)(a). Facts Of The Case: The petitioner, Poonam, was elected as a Councillor from Ward No. 5 of Nagar Parishad, Bhikangaon in October 2022. However, her election was challenged by the first respondent, Dulesingh, on the ground that she had failed to disclose a previous conviction in her nomination affidavit. Specifically, on August 7, 2018, Poonam ...
Supreme Court Reinstates Conviction in Cheque Bounce Case, Slams High Court’s Interference
Supreme Court

Supreme Court Reinstates Conviction in Cheque Bounce Case, Slams High Court’s Interference

This Supreme Court judgment reinforces the statutory presumptions under Sections 118 and 139 of the Negotiable Instruments Act, 1881, which arise upon admission of a cheque's execution. It clarifies that these presumptions are rebuttable, but the initial onus is on the accused. The ruling also establishes that a violation of Section 269SS of the Income Tax Act, 1961, does not render a debt legally unenforceable for proceedings under Section 138 of the NI Act. Facts Of The Case: The case originated from a complaint under Section 138 of the Negotiable Instruments Act, 1881, filed by the appellant, Sanjabij Tari, concerning a cheque for Rs. 6,00,000 issued by the respondent, Kishore S. Borcar. The cheque was dishonoured due to insufficient funds. The appellant contended that the amoun...
Supreme Court Clarifies: Partners Liable for Bounced Cheques Even If Firm Isn’t Named
Supreme Court

Supreme Court Clarifies: Partners Liable for Bounced Cheques Even If Firm Isn’t Named

The Supreme Court ruled that in cases under Section 138 of the Negotiable Instruments Act, a partnership firm need not be separately arraigned as an accused if its partners are prosecuted. The notice to partners constitutes notice to the firm, as partners are jointly and severally liable. The Court clarified that unlike companies, partnership firms lack a separate legal identity, making partners directly liable. The judgment distinguishes between vicarious liability (for companies) and joint liability (for firms), upholding the complaint’s validity despite the firm’s omission. The High Court’s order quashing the complaint was set aside. Facts Of The Case: The appellant, Dhansingh Prabhu, advanced a loan of ₹21 lakh to the respondents, Chandrasekar and another, who were partners of the fi...
Cheque Bounce Case: Supreme Court  Reinstates Case Against Director in ₹6 Crore Cheque Dishonour Case
Supreme Court

Cheque Bounce Case: Supreme Court Reinstates Case Against Director in ₹6 Crore Cheque Dishonour Case

The Supreme Court clarified that for vicarious liability under Section 141 of the Negotiable Instruments Act, complaints need not reproduce statutory language verbatim. Substantive allegations demonstrating a director's responsibility for company affairs suffice. The Court emphasized substance over form, ruling that technical pleading deficiencies don't invalidate proceedings if the complaint, read holistically, establishes the director's operational role. The judgment reinstated criminal proceedings against the director, overturning the High Court's quashing order. Facts Of The Case: The case involved a complaint filed by HDFC Bank against M/s R Square Shri Sai Baba Abhikaran Pvt. Ltd. and its directors, including Mrs. Ranjana Sharma (Respondent No. 2), for dishonor of a cheque worth ₹6...