Dishonour of Cheques
DISHONOUR OF CHEQUES
SECTION 138
NEGOTIABLE INSTRUMENTS ACT, 1881
Dissertation Submitted to
The Guru Gobind Singh Indraprastha University, in Partial fulfillment of the requirement for the Degree of L.L.B.(Hons.)
TABLE OF CONTENTS
Table of Cases i – xi
Chapter - I History of Banks 1-17
Chapter - II Meaning of Negotiable Instruments. Kinds of
Instruments, specifically cheques 18-32
Chapter - III Dishonour of cheque 33-39
Chapter - IV Duty of the Bank in case of dishonour and the effect of amendments. 40-57
Chapter - V Comparison of the old act with new act. 58-71
Chapter - VI Summary suits on cheques dishonoured 72-87
Chapter - VII Comments and Suggestions 88-90
Chapter - VIII Judicial Approach 91-124
Bibliography
CHAPTER-1 HISTORY OF BANKING
* THE INVENTION OF BANKING AND COINAGE
The invention of banking preceded that of coinage. Banking originated in Ancient Mesopotamia where the royal palaces and temples provided secure places for the safe-keeping of grain and other commodities. Receipts came to be used for transfers not only to the original depositors but also to third parties. Eventually private houses in Mesopotamia also got involved in these banking operations and laws regulating them were included in the code of Hammurabi.
In Egypt too the centralization of harvests in state warehouses also led to the development of a system of banking. Written orders for the withdrawal of separate lots of grain by owners whose crops had been deposited there for safety and convenience, or which had been compulsorily deposited to the credit of the king, soon became used as a more general method of payment of debts to other persons including tax gatherers, priests and traders. Even after the introduction of coinage these Egyptian grain banks served to reduce the need for precious metals which tended to be reserved for foreign purchases, particularly in connection with military
SECTION 138
NEGOTIABLE INSTRUMENTS ACT, 1881
Dissertation Submitted to
The Guru Gobind Singh Indraprastha University, in Partial fulfillment of the requirement for the Degree of L.L.B.(Hons.)
TABLE OF CONTENTS
Table of Cases i – xi
Chapter - I History of Banks 1-17
Chapter - II Meaning of Negotiable Instruments. Kinds of
Instruments, specifically cheques 18-32
Chapter - III Dishonour of cheque 33-39
Chapter - IV Duty of the Bank in case of dishonour and the effect of amendments. 40-57
Chapter - V Comparison of the old act with new act. 58-71
Chapter - VI Summary suits on cheques dishonoured 72-87
Chapter - VII Comments and Suggestions 88-90
Chapter - VIII Judicial Approach 91-124
Bibliography
CHAPTER-1 HISTORY OF BANKING
* THE INVENTION OF BANKING AND COINAGE
The invention of banking preceded that of coinage. Banking originated in Ancient Mesopotamia where the royal palaces and temples provided secure places for the safe-keeping of grain and other commodities. Receipts came to be used for transfers not only to the original depositors but also to third parties. Eventually private houses in Mesopotamia also got involved in these banking operations and laws regulating them were included in the code of Hammurabi.
In Egypt too the centralization of harvests in state warehouses also led to the development of a system of banking. Written orders for the withdrawal of separate lots of grain by owners whose crops had been deposited there for safety and convenience, or which had been compulsorily deposited to the credit of the king, soon became used as a more general method of payment of debts to other persons including tax gatherers, priests and traders. Even after the introduction of coinage these Egyptian grain banks served to reduce the need for precious metals which tended to be reserved for foreign purchases, particularly in connection with military