Tagged “negotiable-instruments”

5 articles on negotiable-instruments.

Supreme CourtSupreme Court of India

Dashrath Rupsingh Rathod v. State of Maharashtra: cheque-dishonour jurisdiction

A three-judge bench fixed s.138 jurisdiction at the place of dishonour, overruling K. Bhaskaran — only for Parliament to reverse it via the 2015 amendment.

Valkya Editorial·1 Jun 2026·9 min

LandmarkSupreme Court of India

In Re: Expeditious Trial of s.138 NI Act Cases: the Constitution Bench's pendency reforms

A five-judge Constitution Bench led by CJI S.A. Bobde framed binding directions to streamline cheque-dishonour trials, doubting Meters & Instruments on closure.

Valkya Editorial·1 Jun 2026·8 min

Supreme CourtSupreme Court of India

Meters and Instruments v. Kanchan Mehta: s.138 as a compensatory offence

A two-judge bench treated cheque dishonour as a compensatory offence and allowed closure on payment — a power the 2021 Constitution Bench later doubted.

Valkya Editorial·1 Jun 2026·8 min

Supreme CourtSupreme Court of India

MSR Leathers v. S. Palaniappan: re-presentation and the successive cause of action

A three-judge bench held that each dishonour on re-presentation of a cheque founds a fresh s.138 cause of action, overruling Sadanandan Bhadran's rule.

Valkya Editorial·1 Jun 2026·8 min

Supreme CourtSupreme Court of India

Canara Bank v. Kavita Chowdhary: banks as agents, stale cheques, and deficiency in service under the Consumer Protection Act

On 15 April 2026, a two-judge bench of Justices B.V. Nagarathna and Ujjal Bhuyan held that a bank receiving cheques for collection acts as an agent of the customer and is bound to present the instruments within the validity period; the failure to do so — resulting in the cheques becoming stale, without a reasonable explanation — constitutes deficiency in service under the Consumer Protection Act. The Court moderated the compensation, reducing the consumer-commission award from 10 per cent to 6 per cent of the cheque amount with 6 per cent interest. A digest of the holding and the doctrinal architecture for banking-agent liability.

Valkya Editorial·31 May 2026·7 min