ankush tyagi 19 October 2022

Endorsement according to new judgement ni act 138;56

In latest judgement of justice dy chanderchud in dashrathbhai vs hitesh under ni act 138;56. I am a student and I want to know

1. if it is necessary to endorse the cheque before applying to the bank to encash it?
2. how endorsement works and can plaintiff (lender) be endorser himself?
3. what if the defendant refuses to endorse the cheque?

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2 Replies

Dr J C Vashista (Advocate) 19 October 2022

The cited judgment declares that in order to attract provisions of Section 138 of the Negotiable Instrument Act, 1881 the cheque must have been issued for "legally enforceable debt".

However, which endorsement is being questioned by you is to be clarified by your professor / tutor / coach.

ankush tyagi 19 October 2022

thanks:) assume I borrowed 1 lakh and issued 1 lakh cheque in return as a security, later i paid back 40k. here I am confused. and above said points arise with security check: 1,2,3 accordi to ni act 56 and 15.