“Serving a Relative Isn’t Serving the Law”: Kerala High Court Rules Notice Under Section 138 NI Act Must Reach Cheque Drawer Directly

Kerala High Court ruled that notice served to a relative isn’t valid under Section 138(b) of the NI Act. Conviction quashed due to lack of proper legal notice to the accused.

Kerala High Court: “Bank Must Pay If It Negligently Encashes Cheque With Forged Signatures”

Kerala High Court ruled that a bank is responsible for paying compensation if it cashes forged cheques due to its own negligence. The Court said the customer can’t be blamed without proof they knew about the forgery.

EXPLAINER| HOW TO FILE CHEQUE BOUNCE COMPLAINT UNDER SECTION 138, NEGOTIABLE INSTRUMENTS ACT,1882?

Section 138 of the Negotiable Instruments Act, 1881provides for the legal recourse when a cheque is dishonoured due to insufficient funds or other reasons, and a legal action can be taken.