Introduction
Welcome to the official blog of the Law Offices of Kr. Vivek Tanwar Advocate and Associates, where we are dedicated to providing litigation support services for matters related to Dishonored Cheques. In today’s blog post, we aim to shed light on the prevailing issues surrounding Dishonored Cheques, the legal framework in place for their protection, and the steps we can take as a society to combat these acts. Join us as we explore this critical subject and empower you with the knowledge to protect your rights and safety.
The Negotiable Instrument Act, of 1881 came into force on 1st March 1882 to govern different instruments used in place of fiat money. A new Chapter XVII was added on 1st April 1989 to prevent fraud in the mercantile community, particularly concerning cheques. This amendment aimed to preserve the importance of cheques as an alternative payment mode and ensure greater vigilance in financial matters. It is noteworthy that electronic fund transfers are also governed by the provisions of Chapter XVII, making it crucial to understand Section 138, which criminalizes dishonouring such instruments.
What Is The Negotiable Instruments Act, of 1881?
The Negotiable Instruments Act, of 1881, is a crucial piece of legislation that governs various financial instruments like cheques, promissory notes, and bills of exchange. Among its provisions, Section 138 stands out as a significant deterrent against dishonouring cheques. The section aims to maintain trust in the financial system by imposing penalties on those who default on their obligations. It will delve into the nuances of Section 138 and the consequences it entails for offenders.
Understanding Section 138:
Section 138 of the Negotiable Instruments Act deals specifically with the dishonour of cheques. According to this provision, if a cheque issued by a person for the discharge of any debt or liability is dishonoured due to insufficient funds or if it exceeds the amount available in the drawer’s account, the drawer becomes liable for prosecution. The payee of the dishonoured cheque has the right to demand payment by issuing a notice within 30 days of the dishonour.
Punishment under Section 138:
The punishment for an offence under Section 138 is stringent to ensure that offenders take the law seriously. If found guilty, the accused may face both imprisonment and a monetary fine.
- Imprisonment: The drawer can be imprisoned for a term that may extend up to two years. This provision is aimed at acting as a deterrent against fraudulent practices involving dishonoured cheques.
- Monetary Fine: In addition to imprisonment, the accused may also be liable to pay a fine. The amount of the fine can be up to twice the value of the dishonoured cheque.
Compounding the Offense:
In certain cases, the offence under Section 138 can be compounded, subject to the permission of the court. Compounding involves the withdrawal of the case by mutual consent, typically in exchange for the payment of a certain sum agreed upon by the parties involved.
Significance of Section 138:
Section 138 plays a crucial role in promoting financial discipline and safeguarding the sanctity of negotiable instruments. It upholds the credibility of the banking system, ensures that transactions are conducted smoothly, and encourages people to honour their financial commitments.
Issues and Challenges:
Despite its significance, the implementation of Section 138 has faced some challenges:
- Pendency of Cases: The high number of pending cases has been a concern, leading to delays in justice. To address this, the establishment of fast-track courts and the introduction of alternative dispute resolution mechanisms have been proposed.
- Criminal Overtone: Some experts argue that imposing criminal liability for civil disputes may be harsh and could be detrimental to the ease of doing business. However, proponents argue that the criminal aspect provides a swifter remedy, unlike civil proceedings which can take longer.
Why Does Section 138 NI Act Say
Section 138 of the NI Act deals with the prosecution for dishonouring a “cheque.” A “cheque” is defined in Section 6 as a bill of exchange, payable on demand, with specific parties involved. Mere dishonour of a cheque is not punishable, but it becomes an offence if certain conditions are met:
- The cheque must be presented to the bank within three months of its issuance.
- The bank must return the cheque unpaid due to insufficient funds or a mutual arrangement with the drawer.
- The payee must send a notice to the drawer within 30 days of receiving the bank’s memo of dishonour.
- If the drawer fails to pay within 15 days of receiving the notice, the offence is established.
All of these conditions are mandatory to invoke Section 138. Offenders can face imprisonment for up to 2 years, a fine up to twice the amount of the disputed cheque, or both. It’s important to note that there is a one-month time limit from the date of the cause of action, as stated in Section 142(1)(b). However, the proviso allows for the extension of the deadline in cases where there is a valid reason for the delay.
Nature of offence under Section 138 NI Act
In the case of Kaushalya Devi Massand v. Roopkishore Khore (2011), the Supreme Court made a significant observation regarding Section 138 of the Negotiable Instrument Act, of 1881. It stated that this particular offence should not be equated with any offence under the Indian Penal Code, 1860. The reason is, Section 138 establishes liability for a civil wrong but with criminal implications.
In this case, the appellant was an elderly widow who had been tirelessly fighting against the respondent for 14 long years. The dispute arose when the appellant was supposed to receive Rs. 3,00,000 as payment for a property. However, the cheques issued by the respondent were dishonoured due to insufficient funds. The appellant argued that imprisonment of the offender was necessary to restore people’s faith in the judicial system and to act as a deterrent against those who misuse cheques with malicious intentions to defraud payees.
Both the High Court and the Supreme Court, however, opined that there should be specific circumstances in a case to justify the imposition of imprisonment on the accused. In this instance, there were no such special circumstances, apart from the fact that the victim was an elderly widow. Consequently, the High Court increased the compensation from Rs. 4,00,000 to Rs. 6,00,000, and the Supreme Court further raised it to Rs. 8,00,000. The courts held that in such cases, monetary compensation can sufficiently compensate the victim, eliminating the need for an additional sentence of imprisonment.
The cases of Kaushalya Devi Massand v. Roopkishore Khore (2011) and M/s Meters and Instruments v. Kanchan Mehta (2017) established that Section 138 offences are treated as civil wrongs and only lead to imprisonment in special circumstances. The trial follows a summary procedure, providing a robust remedy. Courts prioritize compensating the victim over penalizing the accused, as seen in P. Mohan Raj v. M/s Shah Brothers Ispat Pvt. Ltd. (2021).
In Rangappa v. Sri Mohan (2010) and Indian Bank Association and Ors. v. Union of India (2013), the Supreme Court observed that Section 138 offences are regulatory, involving civil wrongs affecting private parties. Section 139 reverses the burden of proof on the accused, requiring them to prove “preponderance of probabilities” instead of “beyond a reasonable doubt” as in other criminal offences.
Judicial pronouncements on decriminalizing Section 138 NI Act:
In Makwana Mangaldas Tulsidas v. State of Gujarat (2020), the court observed that Section 138, originally justified as a civil wrong in 1989, could now be decriminalized. The Bombay High Court also considered this perspective in Karmayogi Shankarraoji Patil and Ors. v. Ruia & Ruia Pvt. Ltd. and Ors. (2022). In Gimpex Private Ltd. v. Manoj Goel (2021), the Supreme Court, relying on a notice from the Ministry of Finance, highlighted that Section 138’s criminal offence status has negatively impacted the ease of doing business and investment in India, reinforcing the potential for decriminalization.
Suggestions by the legislature:
In its 213th Report in 2008, the Law Commission addressed the hardships faced by cheque payees due to dishonest issuers. To resolve this, they proposed forming fast-track courts at the ministerial level, aiming to expedite cases and restore public trust in the judiciary. The court also acknowledged and implemented these recommendations in cases like In Re: Expeditious Trial of Cases Under Section 139 of the NI Act, 1881. Additionally, a notice issued in June 2020 by the Ministry of Finance discussed the decriminalization of minor offences, including Section 138, to attract foreign investors and improve the ease of doing business in India.
India’s commitment to the International Covenant on Civil and Political Rights (ICCPR) also supports the argument against criminal liability for civil wrongs. The need to decriminalize such offences has been emphasized in various judgments, such as Jolly George Verghese and Anr. v. Bank of Cochin (1980). The United Kingdom and the United States have also taken steps to decriminalize imprisonment for debtors unable to repay their debts.
Negative Impact of Decriminalization of Section 138:
If Section 138 is decriminalized, there might be no punishment for fraudulent acts, providing an incentive for dishonest individuals. Accepting Post Dated Cheques (PDCs) as security in the mercantile community, relying on the deterrence of dishonouring cheques, will be affected. While complainants can still file FIRs under Section 420 of the Indian Penal Code for cheating, this will burden the courts, defeating the purpose of decriminalizing cheques. Decriminalization may encourage cash transactions, hindering the goal of becoming a cashless economy and increasing the circulation of black money.
Alternatives to Decriminalization of Section 138:
The legislature can set a limit on the sum for which there are no criminal consequences, but beyond that limit, criminal consequences can apply. The drawer’s CIBIL score, reflecting their financial reliability, can be lowered if their cheques bounce, deterring them from dishonouring cheques. Promoting alternative dispute resolution methods like mediation and conciliation can help reduce case pendency.
Scotland’s approach involves attaching funds to the drawer’s bank account until the cheque is honoured or the payee provides a letter stating they have no further interest in the cheque. In Japan, dishonouring a cheque twice in six months can result in a two-year suspension of the bank account. It’s worth noting that in countries like England, Australia, Singapore, Malaysia, France, and the United Arab Emirates, dishonouring cheques leads to civil remedies for the payee, rather than criminal consequences.
Is insufficiency of funds the sole reason to invoke Section 138 for dishonouring a cheque?
Section 138 of the Negotiable Instrument Act, of 1881 can be invoked not only for dishonouring due to insufficient funds but also for cases like signature mismatches, as held in Laxmi Dyechem v. State of Gujarat (2012). The Supreme Court ruled that dishonouring due to a closed account is also covered under Section 138, as seen in NEPC MICON Ltd. and Ors. v. Magma Leasing (1999). However, lost cheques and time-barred debts are exceptions and do not fall under Section 138, based on the judgments in Rajkumar Khurana v. State of NCT of Delhi (2009) and Sasseriyil Joseph v. Devassia (2001) respectively.
Does Section 138 apply to post-dated cheques and blank cheques?
The Supreme Court ruled that dishonouring post-dated cheques falls under Section 138 if the liability exists on the dishonour date (Sampelly Satya Narayan Rao v. Indian Renewable Energy Development, 2016). Additionally, in cases of blank cheques voluntarily signed and given to the payee, Section 138 and the presumption of Section 139 apply (M/s Kalamani Tex v. P. Balasubramaniam, 2021; Raj Singh v. Yashpal Singh Parmar, 2022).
Is it possible to represent a dishonoured cheque?
In Sadanandan Bhadran v. Madhavan Sunil Kumar (1998), the Supreme Court held that only one cause of action arises from a cheque, and re-presenting a dishonoured cheque won’t create a new one. However, MSR Leathers v. S. Palaniappan (2013) contradicted this, stating that a dishonoured cheque can be represented multiple times during its 3-month validity, creating new causes of action. As both judgments are from division benches, the clarity is not definitive, but the latest judgment aligns better with the Act’s nature and should be followed for now.
What happens if two notices are sent during the notice period under Section 138?
In N. Parameswaran Unni v. G Kannan (2017), it was ruled that sending two notices during the notice period of 30 days will not invalidate the proceedings, and the second notice will be considered a reminder without affecting the prescribed periods.
Conclusion
Chapter XVII of the Negotiable Instrument Act, of 1881 has improved cheque credibility, but its effectiveness relies on implementation. Major contentions include high case pendency, addressed by forming fast-track courts (In Re: Expeditious Trial of Cases Under Section 139 of the Negotiable Instrument Act, 2022). There’s debate over giving a criminal overtone to civil disputes, but abolishing it won’t hasten the process due to existing remedies under Order XXXVII of the Code of Civil Procedure, 1908. Regarding imprisonment under Section 138, clear guidelines for special circumstances can be devised. Adding a pecuniary limit and freezing drawers’ accounts like in Scotland and Japan may help. Decriminalization may encourage fraud, impacting the economy.
We are a law firm in the name and style of Law Offices of Kr. Vivek Tanwar Advocate and Associates at Gurugram and Rewari. We are providing litigation support services for matters related to the Negotiable Instrument Act, of 1881.
Lastly, we’ll carry out some cable wrist curls to strengthen our arms additional.
Bent-over cable rows, however, supply a extra compound movement –
focusing on a number of muscle groups positioned within the upper
and decrease back regions. We then transfer on to cable rows and bent-over cable rows for more activation of the back muscle tissue.
Seated cable rows are fairly efficient at isolating and focusing on the
back muscle tissue specifically, including the rhomboids, traps, and lats.
Lastly, we’ll put the session to end by performing some cable shrugs to build
our higher traps.
Begin with one foot on the box and the opposite on the bottom a little nearer than shoulder width.
We need to work on our quadriceps muscle tissue to make them larger, but it could be exhausting
to do it with simply free weights. To ease an ab cramp, start by resting and gently massaging your stomach muscles, this could help improve blood move.
You can also apply heat, like a heat pack, to relax the muscles.
To avoid it altogether, do your best to remain hydrated by ingesting plenty of water
or electrolyte-rich sports drinks sparsely.
“I also love the cable machine for focusing on all the lower-body muscle groups,” notes Meka Gibson, C.S.C.S., a Miami-based energy and conditioning specialist.
Planet Health sometimes doesn’t function conventional
squat racks. As An Alternative, they offer options such as a Smith machine and varied resistance machines designed to focus
on the decrease physique. Yes, Planet Fitness does present free weights,
including dumbbells.
Preserve a straight line out of your head to your knees or toes (depending on the exercise).
Keep Away From arching your again or sagging your hips, as you could hurt yourself.
Guarantee your again is straight and your core is engaged all through each exercise.
This will assist hold you protected from damage and maximize the impact of the exercise.
So whereas this model of the split nails the frequency facet of issues fairly
properly, everything else about it can be an issue for
a lot of people.
It has a platform and a footrest that assist you to do a selected sort
of squat that works the quadriceps muscle tissue.
The Smith Machine is a health club equipment recognized for its guided barbell system.
This allows movements to be safer and more managed than conventional free weights.
Raise your legs straight up after which raise your torso to touch the dumbbell to your toes,
partaking your abs. Select a weight that’s challenging but allows you to perform
workout routines with correct form. As you’ll
soon see, dumbbells provide a variety of workouts that may target totally different elements of the abdominal muscles.
The pull-up bar ab workout routines are excellent for people who choose
pure, equipment-free workouts.
4 workouts can be enough if they aim all main muscle groups.
A mixture of compound and isolation movements can help to make sure
balanced development. The hip adductors and abductors management leg motion at the hip joint.
The adductors originate from the pelvis and insert into the thigh bone.
They convey the legs toward the midline of the physique, aiding in balance and stability throughout
motion. The quadriceps and hamstrings are the primary muscle tissue within the thigh.
The quadriceps originate from the thigh bone and pelvis and attach
to the kneecap.
It’s your final big train, so ensure you give
it your all, utilizing the pyramid technique described in the
exercise notes. The hack squat machine is a compound train that emphasizes your quadriceps.
With plenty of again assist, this move is straightforward in your
backbone but tough on your legs. Finest of all, cable machines permit you to increase or
lower the weights in small increments (often as low as 5 or 10 pounds) so
you can elevate the resistance slowly as you develop strength.
So, don’t hesitate to have a workout plan that features solely stationary workout machines.
Many folks even make the mistake of considering that free
weights are extra environment friendly than machines at the fitness center.
Planet Fitness could offer personal training classes led by licensed trainers.
Investing in a few classes can provide personalised guidance,
tailored exercise plans, and valuable insights into optimizing your health routine.
Earlier Than hustling over to the dumbbell rack for arm
day, there’s the Smith Machine alone in the nook, unloved and gathering mud.
A Smith Machine leg exercise is perfect for your Plan B lower physique exercise.
On both sides of the rectus abdominis, you’ll discover the internal and exterior obliques working in tandem.
These muscular tissues are primarily fired when you’re
performing twisting and side-bending movements. They’re tremendous necessary for rotational strength and the lateral stability of the core muscular tissues.
Squats are just about the holy grail of decrease body workout routines,
though the advantages of leg extensions might give them a
run for their money.
The second day of the exercise plan will focus on pulling muscle tissue in our upper bodies
like the back and biceps. However they are additionally scientifically backed to enhance your performance and strength positive aspects significantly.
So, there could be little to no likelihood of sustaining any accidents or overtraining while
following our machine-only push-pull legs break up training routine.
Research have proven that when it comes to strength, training
anyplace between 2 and 6 days per week may be effective so long as
the workout plan is well-balanced and stimulating enough [2].
Proper recovery ensures optimal strength gains and
reduces the risk of harm. In addition, you’ll have the ability to carry out reverse lunges as one of many Smith machine exercises.
They require unilateral power and stability and might help
reduce muscle imbalances. This is because training one leg
at a time prevents one aspect from compensating
for the other. There are versatile leg press advantages as altering foot position can easily shift the
muscle focus. For example, a higher foot place prompts the glutes more, whereas a lower place targets the
quads extra.
The Seated Leg Press Machine is much like the more frequent leg
press machine but you’ll sit and press horizontally as a substitute of being reclined forty five degrees.
It comes with a sturdy body, a comfortably padded seat, and a backrest,
accompanied by a footplate linked to a resistance system.
Cable standing Single leg calf raises are probably the greatest methods of building your calf muscular tissues.
Here are our high 15 cable leg exercises that
can help you build Larger and Stronger Legs. Keep a exercise journal to
record the workouts, weights, and reps you carry out.
It’s a unbelievable train to add on the finish of your
workout as it gets the blood pumping and burns like hell.
Reverse lunges are presumably one of the simpler variations of
the lunge, but they’ll still offer you one hell of a leg pump.
Familiarize yourself with the layout, find completely different train areas, and perceive the obtainable tools.
While Planet Health encourages a well-rounded method to health, it focuses on creating a snug and
judgment-free setting for individuals, no matter health stage.
Many Planet Health places provide all-day access, allowing
members to work out at any time that suits their schedule.
If you have by no means visited Planet Fitness is a well-liked
chain of health centers known for its approachable and inexpensive health club
environment.
Total, individuals find rowing machines a unbelievable method to see healthy muscle
growth while toning and tightening the muscle tissue all over the body.
When you employ a rower, the sliding seat forces your leg muscular tissues to interact to push off of the footboards, which
makes your legs work. Your arms, in fact, are engaged by pulling on the handles, and your core and back muscle tissue
are engaged to pull the handles and keep your
steadiness and position. However, make sure you raise light-weight weights during
reverse grip bench press, as this exercise’s major goal is to construct muscle,
not power. The bench press is one of the three greatest lifts in bodybuilding.
It is a compound motion that mainly strengthens and develops the pectoralis muscle tissue and achieves a muscular torso.
The benefits of hack squats include lowering the strain on your knees
and interesting the muscle tissue that help to support this crucial joint.
It’s also extra glute-focused than commonplace squats, but will still build
monster quads. So, thrice a week, working the legs for twenty minutes each time is an effective goal.
You can change it up or set a day to work
specific leg muscle tissue like calves, hips, and thighs.
To higher steadiness your program, try to do single-leg “unilateral” movements to ensure the working limb is totally recruited.
Sometimes, with both toes on the footboard, we depend on working one limb over the other.
Straight-arm cable pulldown, again, is an intense train that primarily targets the lats.
Subsequent up, we’ve some high cable curls and simple
cable curls to build our biceps. We begin with some
wide-grip lat pulldowns, which type the simplest pulling
workout routines other than common pull-ups [5].
Now that you just understand the ideas of our push-pull-legs cable exercise let’s transfer on to the actual program.
The greatest way to maximize your progress on the health club is to structure your exercises efficiently.
For this, you will need to stick to a specific training break
up, which can get confusing for many health enthusiasts.
Endomondo e-newsletter has tips, workout plans, and sources that may assist you to in your
fitness journey. The hamstrings, at the again of the thigh, originate from the sitting bone and attach to the lower leg.
They flex the knee (bend the leg) and extend the hip (move the leg backward).
Donkey Kicks – three units of 8-12 reps, with 30 seconds of relaxation between. Cable Step-Ups – 3 sets of
8-12 reps, with 30 seconds of relaxation between. Cable Lateral Lunges –
three units of 8-12 reps, with 30 seconds of rest between. Cable Hack Squats – 2 sets of 8-12 reps, with 30 seconds of
rest between.
This machine is definitely one of many more awkward leg machines
in the health club. The leg extension machine is a traditional leg growth tool present in native gyms.
Okay, now that we have lined a variety of the perks
of using the machines at your health club for leg day, let’s check
out each machine individually. ✅ Excellent for isolation – Strength
training machines take away the soundness requirements which are inherent in free weight
coaching. That means all of your efforts is being expended by the main muscle
teams. We’ll take a glance at the benefits of every,
the muscle tissue labored, and what you have to find out about taking leg day to the next
degree. Health Club machines may be a good way to build larger, stronger legs and
cut back harm danger.
Beyond our personal personal expertise, all of us here are PT skilled and certified in fitness
associated disciplines. I’ve been lifting weights for 20 years, all the time been clean – at all times been tempted.
I’ve been skilled to Reps 3 YMCA Fit normal and hold a separate SAQ (Speed, Agility and Quickness) certification. I
expressly comply with indemnify and maintain the Membership innocent
from any loss, liability, damage, or value the Membership might incur as a result
of my presence at the Club facility. If you’d rather
not lie on the ground for this hip thrust exercise, you should use a weight bench to help as illustrated in the picture above.
The Smith machine could be your finest pal in phrases of coaching your legs.
It’s not an enormous distinction, however it’s noticeable
enough that when the stabilizer muscles are removed from the equation, you
presumably can lift anywhere from 5-20% extra.
Doing so will permit you to proceed including quantity to your
quadriceps and other leg press muscular tissues worked with
out causing the additional fatigue that loading
a barbell in your spine creates. One benefit of the leg press machine is you could emphasize
different muscle tissue by varying your leg press foot place.
It builds power in these muscular tissues, and you can use it to beat imbalances, corresponding to
overly developed hamstrings, compared to quadriceps. Training
every muscle turns into essential to constructing a strong lower physique.
The Smith machine is amongst the finest fitness center tools for successfully strengthening quads, hamstrings, glutes, and calves.
The fitness center is tailored to cater to individuals with various health objectives and will hit all the most important muscle groups.
Nonetheless, for specifically concentrating on your abs
muscular tissues, you can adapt the rowing machine in a really distinctive and efficient means.
And as a result of it can be adjusted flat, it doubles as a fantastic weight bench to pair with a bench press, squat rack,
or Smith machine. In reality, there are in all probability extra abs-focused health club machines than you have to use in a single workout.
If you’re attempting to have interaction the decrease stomach muscle tissue that
work with your hips to move your legs, there’s a machine for that.
In this article, we will have a glance at the simplest fitness center machines
for coaching abs, why you must use a machine, and more.
If you’re severe about constructing that six-pack, there are a couple of fitness center machines that may help you to do it correctly.
With consistent and habitual use, house rowers can get your entire body
into form as a end result of it really works and strengthens so many alternative
muscle groups.
There are only a few workout splits that are perfectly designed by means of effectiveness,
balance, frequency, and scheduling choices. When looking for core workouts on-line,
you may encounter a variety of unusual and impressive routines designed to strengthen your core.
Legs are important for on an everyday basis actions such as walking, running, and
climbing. Strengthening the muscle tissue in your legs may help you
turn into more athletic and improve your total well being.
References:
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