{"id":233443,"date":"2020-08-06T09:01:47","date_gmt":"2020-08-06T03:31:47","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=233443"},"modified":"2020-08-07T10:58:34","modified_gmt":"2020-08-07T05:28:34","slug":"delhi-court-for-application-of-s-138-of-ni-act-there-should-not-be-any-uncertainty-ambiguity-in-cheque-as-regards-to-amount-written-in-words","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2020\/08\/06\/delhi-court-for-application-of-s-138-of-ni-act-there-should-not-be-any-uncertainty-ambiguity-in-cheque-as-regards-to-amount-written-in-words\/","title":{"rendered":"Delhi Court | For application of S. 138 of NI Act, there should not be any uncertainty\/ ambiguity in cheque as regards to amount written in words"},"content":{"rendered":"

Delhi Sessions Court (Patiala House): <\/strong>While dealing with the instant matter related to dishonour of cheques, Additional Sessions Judge Parveen Singh observed that in order to protect the rights of the receiver of a cheque in good faith, the scope of Section 138 of Negotiable Instruments Act, 1881 (Hereinafter NI Act) with regard to the dishonour of a cheque has been expanded. However, the instrument presented must be a valid cheque as defined under Section 6 of the NI Act and it only thereafter, if the cheque is dishonoured for any reason that Section 138 of the NI Act will come into picture. The Judge further observed that there should not be any uncertainty in the cheque as regards to the amount written in words, or else such uncertainty shall render the cheque as invalid for the purposes of Section\u00a0 138 of NI Act.<\/p>\n

As per the facts, the accused\/revisionists were the dealers of the complainant\/ respondent. It was alleged that in order to discharge their liability, the revisionists issued a cheque for an amount of Rs 44, 18,896\/- drawn on Canara Bank, Pune. However, on being presented for encashment, the cheque got dishonoured, the reason being that the cheque was irregularly drawn\/ amount in words and figures differed. It was further alleged that thereafter, despite issuance of legal demand notice, the revisionists failed to make the payment of the cheque amount. The revisionists\/accused via their counsel Sanjay Bhargav contended that, the Trial Court failed to appreciate the position of law as described under Chapter XVII of N.I Act which deals with penalty in cases relating to dishonor of cheques for insufficient funds in the accounts. It was further contended that the Trial Court failed to consider relevant provisions of the NI Act, mainly Section 6 which defines \u2018cheque\u2019; Section 5 which defines the Bill of Exchange and Section 18 which defines the circumstances where amount is stated differently in figures and words. It was further argued that prosecution under Section 138 of NI Act can only be launched and continued on dishonour of a cheque and for an instrument to be a cheque; it has to satisfy the conditions of being valid under Sections 5 and 6 of the NI Act. The revisionists therefore contended that the cheque in question was not a valid instrument. Per contra, the respondents represented by M.P Upadhyay, argued that revisionists cannot take advantage of their own wrong (i.e. filling an incorrect and ambiguous amount in the cheque while describing the amount in words) when with malafide intention.<\/p>\n

Perusing the contentions and the relevant provisions, the A.S.J., observed the peculiarity of the instant case in the sense that, \u201cthe very factum of the instrument being a valid cheque has been challenged. The Court noted that a Bill of Exchange must satisfy the requisites enumerated under Section 5 of the 1881 Act; namely- an instrument in writing; containing an unconditional order signed by the maker; directing a certain person to pay (or the direction to pay is given to a specified banker); a certain sum of money; only to, or to the order of, a certain person or to the bearer of the instrument<\/strong>. Thus if an instrument satisfies all the aforesaid five conditions, the said instrument will be a cheque within the meaning of the NI Act.<\/p>\n

The Court noted that the cheque in question does satisfy the aforementioned requisites, however the amount written in words is \u201cforty four lacs eighteen lacs eight hundred and ninety six only.\u201d; this amount cannot be said to be a certain amount of money. Thus the certainty which is required by Sections 5 & 6 of the NI Act with regard to the amount to be paid is missing in this instrument. It was thus held that since the instrument on the basis of which complaint was filed was not a valid cheque within the definition of Section 6 of NI Act, thus there exists no offence of dishonour of cheques under Section 138 of NI Act on the part of the revisionists. [Shree Tyres v. State, Cr. Revision No. 742 of 2019, decided on 24-07-2020]<\/p>\n","protected":false},"excerpt":{"rendered":"

Sucheta Sarkar, Editorial Assistant has put this story together<\/p>\n","protected":false},"author":67011,"featured_media":39981,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,4721],"tags":[23574,23564,42935,42936],"class_list":["post-233443","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-district-court","tag-dishonour-of-cheques","tag-negotiable-instruments","tag-section-138-of-ni-act-1881","tag-sections-5-6-of-ni-act"],"yoast_head":"\nDelhi Court | For application of S. 138 of NI Act, there should not be any uncertainty\/ ambiguity in cheque as regards to amount written in words | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" 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on S. 146 NI Act | Bank\u2019s slip denoting cheque has been dishonoured: A prima facie evidence? Explained by Tis Hazari Courts","author":"Bhumika Indulia","date":"May 12, 2022","format":false,"excerpt":"Tis Hazari Courts, New Delhi: While addressing a decision revolving around Section 138 of Negotiable Instruments Act, 1881, Sanjay Sharma-II, Additional Sessions Judge-03, upheld the decision of the Trial Court and held that all the ingredients of Section 138 NI Act were fulfilled by the complainant. A criminal appeal under\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Tis-hazari","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":364043,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/10\/16\/rajasthan-hc-section-138-ni-act-on-cheque-for-time-barred-debt-revives-enforceability-under-contract-act\/","url_meta":{"origin":233443,"position":1},"title":"Cheque for Time-Barred Debt Revives Enforceability Under S. 25(3) Contract Act; Dishonour attracts Section 138 NI Act: Rajasthan High Court","author":"Editor","date":"October 16, 2025","format":false,"excerpt":"\u201cA meaningful reading of Sections 20, 118 and 139 of the NI Act makes it clear that a person who signs a cheque and delivers it to the payee remains liable unless he successfully rebuts the statutory presumptions.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Section 138 NI Act on Cheque for Time-Barred Debt","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Section-138-NI-Act-on-Cheque-for-Time-Barred-Debt.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Section-138-NI-Act-on-Cheque-for-Time-Barred-Debt.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Section-138-NI-Act-on-Cheque-for-Time-Barred-Debt.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Section-138-NI-Act-on-Cheque-for-Time-Barred-Debt.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":324260,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/06\/13\/dishonour-invalid-cheque-cannot-attract-liability-s138-ni-act-allahabad-hc-scc-times\/","url_meta":{"origin":233443,"position":2},"title":"\u2018Dishonour of invalid cheque cannot attract liability u\/s 138 of NI Act\u2019; Allahabad HC holds Allahabad Bank cheques to be invalid post 30-09-2021","author":"Editor","date":"June 13, 2024","format":false,"excerpt":"\u201cFrom the perusal of Section 138 N.I. Act, it is clear that if any invalid cheque is presented before the Bank and the same was dishonoured, then no liability under Section 138 of NI Act would be attracted, and the cheque of Allahabad Bank is invalid after 30-09-2021 after merging\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Allahabad High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Allahabad-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":275450,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/10\/12\/dishonour-cheques-section-138-ni-act-legally-enforceable-debt-encashment-supreme-court-legal-research-updates-news\/","url_meta":{"origin":233443,"position":3},"title":"Dishonour of Cheques| Section 138 NI Act would not attract if cheque does not represent a legally enforceable debt at the time of encashment","author":"Prachi Bhardwaj","date":"October 12, 2022","format":false,"excerpt":"Supreme Court: In the case where the Supreme Court was called upon to decide whether the offence under Section 138 of the Negotiable Instruments Act 1881 would deem to be committed if the cheque that is dishonoured does not represent the enforceable debt at the time of encashment, the bench\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/10\/Section-138-NI-Act-would-not-attract-if-cheque-does-not-represent-a-legally-enforceable-debt-at-the-time-of-encashment-1-1.png?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/10\/Section-138-NI-Act-would-not-attract-if-cheque-does-not-represent-a-legally-enforceable-debt-at-the-time-of-encashment-1-1.png?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/10\/Section-138-NI-Act-would-not-attract-if-cheque-does-not-represent-a-legally-enforceable-debt-at-the-time-of-encashment-1-1.png?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/10\/Section-138-NI-Act-would-not-attract-if-cheque-does-not-represent-a-legally-enforceable-debt-at-the-time-of-encashment-1-1.png?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/10\/Section-138-NI-Act-would-not-attract-if-cheque-does-not-represent-a-legally-enforceable-debt-at-the-time-of-encashment-1-1.png?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":239006,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/11\/11\/negotiable-instruments-act-ker-hc-what-determines-commencement-of-period-of-presentation-is-date-of-cheque-and-not-the-date-of-delivery-of-cheque\/","url_meta":{"origin":233443,"position":4},"title":"[Negotiable Instruments Act] Ker HC | What determines commencement of period of presentation is date of cheque and not the date of delivery of cheque","author":"Bhumika Indulia","date":"November 11, 2020","format":false,"excerpt":"Kerala High Court:\u00a0A Division Bench of A. Hariprasad and T.V. Anilkumar, JJ., while addressing a review petition,\u00a0 reiterated that the relevant date which makes a postdated cheque payable is the date which the cheque bears. In the appeal, the money decree in the respondent's favour was confirmed rejecting the appellant's\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":71821,"url":"https:\/\/www.scconline.com\/blog\/post\/2016\/09\/20\/dishonour-of-post-dated-cheque-for-discharge-of-existing-liability-is-covered-by-section-138-of-the-negotiable-instruments-act-1881\/","url_meta":{"origin":233443,"position":5},"title":"Dishonour of Post-dated cheque for discharge of existing liability is covered by Section 138 of the Negotiable Instruments Act, 1881","author":"Prachi Bhardwaj","date":"September 20, 2016","format":false,"excerpt":"Supreme Court: In the matter where the question as to whether the dishonour of a post-dated cheque given for repayment of loan installment which is also described as \u201csecurity\u201d in the loan agreement is covered by Section 138 of the Negotiable Instruments Act, 1881, was before the bench of Dipak\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2017\/09\/Supreme-Court_Colour.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/233443","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67011"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=233443"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/233443\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/39981"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=233443"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=233443"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=233443"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}