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Section 138 of the Negotiable Instruments Act: Essential Trial Court Best Practices and Statutory Compliance

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Section 138 of the Negotiable Instruments Act: Essential Trial Court Best Practices and Statutory Compliance Introduction: The Judicial Role in Commercial Credibility In the contemporary commercial architecture of Bangladesh, the liquidity of trade and the security of financial transactions rely heavily upon the integrity of negotiable instruments, chief among them being the commercial cheque. To protect commercial dealings from bad faith, fraud, and default, the legislature enacted Section 138 of the Negotiable Instruments Act, 1881 ( "NI Act" ). Originally designed to instill absolute confidence in banking instruments, Section 138 has evolved into one of the most vigorously litigated provisions across the trial courts of Bangladesh, crowding the dockets of Judicial Magistrates, Metropolitan Magistrates, and Sessions Courts alike. For Bangladesh Judicial Service (BJS) candidates, law students, and active trial practitioners, mastering Section 138 requires more than a s...

Essential elements of Section-138 of the Negotiable Instruments Act, 1881.

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  The Negotiable Instruments Act, 1881. Section-138. Three conditions are to be fulfilled for instituting a case against the drawer of the cheque under section 138 of the negotiable instruments Act, 1881, namely, (1)              that the validity of the cheque is six months i.e., the cheque is to be presented within six months from the date of its drawn; (2)             that the payee or holder of the cheque is to make a demand for the payment of cheque amount by giving a notice in writing within thirty days from the date of bouncing of the cheque; and (3)             that the drawer fails to make the payment of the cheque amount within thirty days from the date of bouncing of it.   Book Reference: APPLICATION OF EVIDENCE IN DIFFERENT LAWS. BY-Justice Mohammad Hamidul Haque Sir, Universal Book ...