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| Legal Brief |
| Newsletter by Mansukhlal Hiralal & Co. |
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| INSIDE THE LEGAL BRIEF |
- Feature Insight
- Brief Updates
- Success Highlights
- Spotlight
- Ask MHCO
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MHCO Legal Brief :
Insights, Updates, and Expertise Unveiled |
| Stay ahead with MHCO’s latest legal insights, success stories, and expert guidance on emerging laws and industry developments. |
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| Feature Insight |
| Inside the Legal Landscape |
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Legal Background on Cheque Bounce Cases under Section 138 of the Negotiable Instruments Act, 1881
Introduction to the Negotiable Instruments Act, 1881:
The Negotiable Instruments Act, 1881 governs negotiable instruments such as cheques, promissory notes, and bills of exchange. A cheque bounce, or dishonour of a cheque, occurs when a cheque cannot be processed due to insufficient funds in the issuer's account or other reasons specified by the drawee bank.
Section 138 of the Act:
Section 138 specifically addresses the dishonour of cheques for insufficiency of funds. The provision aims to ensure the reliability of cheques as a negotiable instrument and deter financial delinquency.
Key Elements for a Cheque Bounce Offense:
- Issuance of a cheque: A cheque must be drawn for the discharge of a legally enforceable debt or liability.
- Dishonour by the bank: The cheque is returned unpaid due to insufficient funds or other valid reasons.
- Notice to the drawer: The payee must issue a written demand for payment within 30 days of receiving notice of dishonour.
- Failure to pay: The drawer fails to pay the demanded amount within 15 days of receiving the notice.
Penalty: Upon conviction, the drawer can face imprisonment of up to 2 years, a fine up to twice the cheque amount, or both. |
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Did You Know?
Article39A of the Indian
Constitution mandates that the state must provide free legal aid to ensure that opportunities for
securing justice are not denied to any citizen by reason of economic or other disabilities. |
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| Brief
Updates |
| Capturing the fast paced changes |
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Arbitration Updates
Unilateral Appointment of the Arbitrators
The Supreme Court of India, in the case of Central Organisation for Railway Electrification (CORE) v. M/s ECI SPIC SMO MCML (JV), ruled on the unilateral appointment of arbitrators in public- private contracts, emphasizing independence and impartiality. It mandates broad-based arbitrator panels for government-related cases to ensure fairness. Learn More |
Excerpts from Experts: NTPC Ltd. Arbitration Case
In a related excerpt, the Supreme Court also discussed the issue of non- arbitrable disputes in NTPC Ltd. v. Joseph P. Philip, stressing that arbitration should not be invoked in cases where no actual dispute exists, reinforcing the need for genuine disputes for arbitration to be valid. Learn more |
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SEBI and Regulatory Communication
SEBI Update: Important Advisory on Communication with SEBI Officials SEBI has issued an advisory to ensure that any communication seeking approval or clarification from the regulator is explicitly written. Learn more
MCA Update: Dematerialization of Securities Deadline Extended for Producer Companies The Ministry of Corporate Affairs extended the deadline for producer companies to dematerialize their securities, providing additional time to address compliance challenges unique to the agricultural and cooperative sectors, under the Companies Act, 2013. Learn more |
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| Success
Highlight |
| deals or judgements that MHCO procured. |
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Cross-border IP Dispute:
In a recent arbitration case, MHCO secured a successful outcome for a tech client involved in a cross-border IP dispute. This case highlights our strength in international arbitration and IP protection.
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Successful Corporate Transaction:
MHCO advised a multinational conglomerate in its acquisition of a major Indian manufacturing company. The deal, valued at over USD 100 million, involved complex regulatory approvals and cross-border negotiations, showcasing MHCO’s expertise in M&A.
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Judgment in High-Profile Corporate Litigation:
MHCO achieved a favorable judgment for a Fortune 500 company in a complex commercial litigation involving breach of contract claims. The court’s decision underscored the firm’s litigation strength and dedication to delivering results for its clients. |
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| Spotlight |
| In the
Limelight. |
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The 16th edition of India GRI at Mumbai's St. Regis brought together a distinguished gathering of industry leaders, investors, and developers for exclusive networking and thought-provoking discussions.
Keynote panels delved into pivotal topic ssuch as foreign investments, emerging asset class trends, and sustainable development across sectors, including hospitality, retail, REITs, and AIFs.
Mansukhlal Hiralal & Co. (MHCO) was proudly represented by our esteemed Partner, Ms. Purvi Shah Asher, who shared valuable perspectives during the event. Her session, titled "India's Growing Commitment to Sustainability", emphasized the country's strides in green leasing and its focus on eco-friendly development, underscoring MHCO’s alignment with global sustainability goals. |
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| Our Partner, Ms. Purvi Shah
Asher, Panellist at the 16th
Edition of India GRI sharing her
views on "India's Growing
Commitment to Sustainability" |
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Ask Mansukhlal
Hiralal & Co. |
Breaking
down complex
legal issues for you |
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In this edition, we have Purvi Asher, a Senior Expert in Corporate Transactions at MHCO, breaking down a recent query: “What are the key implications of the latest SEBI amendments on corporate governance for listed companies?”
Purvi explains: “The new regulations enforce stricter disclosure norms, increased board accountability, and heightened scrutiny of related- party transactions. This regulation aims to enhance transparency and investor protection.”
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Purvi Shah Asher
Partner |
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You can send your legal queries to ask@mhcolaw.com for expert advice in the next newsletter! |
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| We sincerely thank our clients, colleagues,
and partners for their ongoing support. Your
trust fuels our growth, and together, we look
forward to reaching new heights. |
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Address |
| Surya Mahal, 2nd Floor 5, Burjorji Bharcha Marg
Fort, Mumbai-400 023 India |
| C-9, Lower Ground Floor Jangpura Extension,
New Delhi-110014 India |
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Telephone |
| +91-22-40565252 / +91-11-40196496 |
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Website |
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This newsletter has been published on 31 Dec 2024.
