Friday, June 19, 2015

Ordinance Finally Brings Clarity regarding Cheque Bounce Cases

Section 138 of the Negotiable Instruments Act, 1881 contains the offence of ‘dishonour of cheque’, commonly known as ‘cheque bouncing’. Though it is one of the most commonly used provisions of criminal law in India – in several court complexes there is a designated courtroom dealing with only section 138 cases all year round – yet there has been great confusion regarding the jurisdiction of courts in these cases which the government sought to settle once and for all by promulgating the NegotiableInstruments (Amendment) Ordinance, 2015.

Section 138 lays down that the person who receives a cheque which bounces when presented for payment can approach a magistrate for bringing criminal action against the drawer of the cheque if the cheque amount is not paid within 15 days of giving a notice to the drawer.

The Multiple jurisdictions system and its problems
For several years, the victim who received a cheque which bounced had the freedom to lodge a complaint before either the magistrate in whose jurisdiction the collecting bank (bank branch where cheque was presented for payment) is located or with the magistrate in whose jurisdiction the drawee bank (bank branch in which accused has an account and on which the cheque is drawn) is located or even the magistrate of the place from where the notice was issued. Infact the 1999 Supreme Court judgement (K Bhaskaran v. Sankaran Vaidhyan Balan) regarding jurisdiction in such matters was so broad that there could even be five possible jurisdictions based on where each of the five elements of the offence is committed. This often led to abuse of the system where complainants presented the cheques in faraway places or issued notices from cities with no link to the transaction just so that they could file the complaint from these third cities.

Supreme Court changes course
However, the Supreme Court upset the existing status quo when in Dashrath Rupsingh Rathod v. State of Maharashtra, it held that the offence was committed only when the cheque was returned by the drawee bank for the lack of funds and thus only the magistrate of the place where the drawee bank is located had the jurisdiction to hear the case. This now meant that if a cheque drawn on a bank branch in Srinagar was given to a person living in Chennai and it bounced when presented it for payment at a bank branch in Chennai, the victim shall have to travel all the way from Chennai to Srinagar to file a case. This is because the offence is committed when the bank in Srinagar returns the cheque for lack of funds and not before that.

Problems Galore
The Dashrath Rupsingh Rathod decision of the Supreme Court meant that lakhs of cases had to be transferred to other courts or withdrawn to be filed again. Further complications were added because many banks now issue cheques that are ‘payable at par’. When presented for payment, these cheques are processed not by the bank branch on which they are drawn but by the same bank’s branch closer to where the cheque is presented for payment. The Supreme Court had not clarified where exactly the offence is deemed to be committed and where the jurisdiction shall lie in such cases.

The Ordinance Fix
The ordinance promulgated by the President on Tuesday again changes the jurisdiction in cheque bounce matters by adding section 142(2) –
(2) The offence under Section 138 shall be inquired into and tried only by a court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment, is situated
 As per the ordinance, the local court within whose jurisdiction the cheque is presented for payment shall have jurisdiction over the matter meaning that if you issue a cheque drawn on a bank in Srinagar and give it to someone who presents it to his bank branch in Chennai for deposit in his account, only the courts of Chennai shall have jurisdiction. In the past, in cases of multiple cheque bouncing, some complainants used to present the various cheques which they held in different places in order to harass the accused by have commencing criminal proceedings in various different cities. However, the new ordinance puts an end to such harassment by making it clear in section 142A(2) that once one cases is filed in one court, for all the future cheque bounce instances between the complainant and the accused, the same court shall have jurisdiction regardless of where the cheques are presented for payment by the complainant.

 The ordinance shall once again prompt large scale transfers of cases, however by incorporating a clause pertaining to jurisdiction within the Act itself, it eliminates the possibility of future conflicting decisions of the courts on this issue. Furthermore, by prohibiting complainants from approaching more than one court in respect of several cheques of a single person, it also adequately takes care of the interests of the accused and thus must be seen as a positive step.


 Recourse to the ordinance route was necessitated because though the Lok Sabha passed an identical Bill in the previous session of the Parliament, it could not be taken up in the Rajya Sabha due to the lack of time. It is imperative that both houses approve the Bill to replace the ordinance in the next session because allowing the ordinance to lapse would plunge the system back into a chaotic state.

Tuesday, March 10, 2015

Scholarship - Starting a New Life!

Finally it came. THE LETTER! For the past six months I had jumped through various hoops for this. First an extremely long drawn out application form. Then the dreaded written exam. Three papers of an hour each. One paper so lengthy that I couldn't even finish (but I was glad to find out that no one else did either). And finally there had been that interview. The fourteen year old me and five interviewers, two of them principals of schools in Singapore, I later learnt. For half an hour I had discussed the randomest of things. From why my math scores were not high in the written test, to Indian cricket team, my favourite authors and surprisingly, yoga.

Thursday, March 5, 2015

The Letter!

“Dad! The postman says you have to sign something. I am not old enough.” Anil heard his daughter shout out. He hurried to the door to see what the matter was. He expected some kind of a “Registered Post” packet for which the receiver has to sign on the acknowledgement card. “Aapke liye money order hai. Aur chitthi bhi.” (There is a money order for you, and also a letter.) 

Tuesday, February 17, 2015

Umar Bhar Befikar!

Most of us live our lives worrying. Worry about family, work, money and what not. Our lives are often spent doing what we do not want to do but must do because of external compulsions. Thus,  IDBI Federal Life Insurance Company's new tagline Befikar Umar Bhar appeals instantly.

You can checkout the entire advertisement here - 


I cannot help but imagine what would be the things that I would do if I was Befikar Umar Bhar! A whole wide world is literally open to the person who does not have to worry about money and time. So these are the top five things that I would do!

1. Around the World in 80 days 
I absolutely love reading. Commercial Fiction, Literary Fiction, Non Fiction, Comics, Newspapers, Magazines, I read anything and everything that I can get my hands on! However, if there is something I like more, that thing can only be travelling. So when I am befikar umar bhar I shall combine both and retrace the steps of the protagonist of Jules Verne's timeless classic, 'Around the World in 80 days'. I shall take the exact same path he took and try to use the same modes of transport. Whether I shall have the same number of adventures, now that remains to be seen...
Around the World in 80 Days Route
Source : Wikimedia Commons

2. Get myself a Batmobile 
I love the feeling of the wind blowing in my face when I ride any motorcycle. And in motorcycles what can be more top of the range than a Batmobile? I shall commission some top engineers to build me a fully functional Batmobile! Why? Have you seen the thing? 


3. Learn Cocoa Farming in Ghana
One of the problems of the above mentioned itenary of Around the World in 80 Days is that it does not let me explore the African Continent. Jules Verne's hero just made one African stop. Cairo. I however, would like to see more and learn something while I explore Africa.

I have had chocolates from India, Singapore, Malaysia, Switzerland, USA, Belgium and many other countries. I can probably name fifty chocolate brands! However, I realise that I know way too little about the chief ingredient of chocolate, the Cocoa nut! So I would go to see and learn Cocoa Farming in Ghana for a couple of years while I take occasional tours and safaris to other parts of Africa.

Cocoa Pods
Source : Wikimedia Commons
4. Travel on a Cruise from Mumbai to Singapore
I have lived almost my entire life on two islands, Mumbai and Singapore. However, I have never travelled from one place to other by an ocean liner. I would love to go visit my friends in Singapore and enjoy the luxury of a cruise ship while I am on the way! A different cuisine for each meal, sea view throughout the journey and rounds of games to kill time! Or perhaps, I may just buy a cruise ship!

A cruise ship!
Source : Wikimedia Commons

5. Open a Free Legal Aid Clinic
My hero, Batman uses all his wealth and time for a good cause and so shall I. I shall buy a huge house next to the seaside somewhere along Maharashtra's Konkan coast to act as my home and office. There I shall run a free legal aid clinic offering my services as a lawyer to the poor and underprivileged who do not have the means or the awareness and knowledge to resort to legal remedies for their problems. I shall also spread awareness about consumer law so that no one is cheated by vendors. I shall ensure that no poor accused goes undefended and neither the government nor any well off individuals or organisations in the society deprive the aam admi of his legal rights. I shall try to ensure that justice is done. 

This is what I would do if I was #BefikarUmarBhar! Read more about IDBI Fedral's campaign here - http://bit.ly/BefikarUmarBhar 

This post was a part of Indiblogger's Happy Hours Contest!

Tuesday, February 10, 2015

The Real Heroes Of The Republic Day Parade

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This post was first published at Huffington Post India on 04/02/2015.
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Doordarshan's Republic Day Parade broadcast gave us much background information regarding our gallantry award winners but it forgot to focus on some other heroes at Rajpath - the viewing public who managed the awe-inspiring feat of procuring the parade tickets. Here's the story of what it takes to make it to Rajpath on 26 January.

Having a quiz to attend in Delhi on 22 and 23 January, I spotted an opportunity to extend my stay and watch the Republic Day Parade live at Rajpath. When I asked around for the procedure to get a ticket, I soon realised that the only advice that everyone (even the otherwise loquacious breed of Delhiites) had was to get a pass by contacting influential bureaucrats. I was often told, "Ticket line se nahi, pehchan se milti hai (You get tickets not from a queue but through contacts)."
Though I discreetly enquired of my friends if they knew these pass-bearing influential persons, I refused to believe that this underhanded method could be the only feasible way to obtain passes. I searched the internet to find out how I could lay my hands on the tickets being sold to the public at large.
The Press Information Bureau had no useful release regarding the sale of 2015 R-Day Parade tickets. The only available press release merely stated that tickets are still available at the "designated sale counters" without any mention of where these were.Media articles were just as vague.
Finally I thought I had struck gold when I found a 2007 press release detailing the locations where the tickets were available. However, when I turned up at the Gandhi Ashram in Chandni Chowk (which isn't really an ashram at all but a khadi store) I was told that the press release I was relying upon was hopelessly outdated and that no tickets were available there. The store attendants suggested that we go to the government's tourist office at 88 Janpath.
Having wasted my time once, I decided to call the tourist office at Janpath only to discover that the Delhi Tourism website lists only a seven-digit phone number for its Janpath office which is obviously an incomplete number and cannot be dialled.
Hearing from a friend that tickets are usually available at Parliament House, I dialled the reception where the very helpful receptionist explained to me that the Ministry of Defence personnel selling the tickets had shut shop and left an hour early as 23 January was the last day of sale there.
Hearing my side of this phone conversation, a helpful aam admi on the metro informed me that tickets were being sold at Pragati Maidan. Upon reaching Pragati Maidan Gate No. 1 the next afternoon (after being thoroughly fleeced by auto drivers) I was delighted to at least see a ticket sale counter in existence. The joy was short lived though, since the official manning the counter told me that the daily quota of Republic Day parade tickets was sold out and that I could only buy tickets for the Beating Retreat programme. He asked me to return at 8am the next morning (25 January) to buy the coveted Rs 300 tickets which apparently give one the right to reserved seating. What I did not know was that he had left out some key details.
The next morning, I braved the freezing weather (at least to my Mumbai body) and made it to the Pragati Maidan counter at 8.15am only to find a long queue of at least 50 well-equipped ticket seekers laughing at the sorry figure I cut. I had neither a warm jacket or hat nor the required documentation. The kind souls in the queue told me that the guy at the counter was issuing the reserved tickets only to those who had a photocopy of an identity card. So I walked for 1 ½ km each way and returned with a photocopy of my driving license. It was 9am by then and the counter was still not open. While I was wondering why the person at the counter didn't tell me the ID card requirement the previous day, the people around me had even more surprising details to share. On an average it was the second or third purchase attempt for everybody in the line. I was also told that even upon having ID, a person could buy only one reserved ticket meaning that I would not be able to purchase any for my quiz partners who were patriotic enough to want to watch the Parade live but not enough to go hunting for tickets.
While we were waiting for the counter to open, Delhi Traffic Police and CRPF personnel made their appearance in large numbers and briskly informed us that the counter would not open until 1pm and that we had to clear the area in an hour. When half an hour passed without anyone believing the police, the cops could be heard murmuring to anyone who asked them "Please chale jiye warna danda marke bhagana padega (Please leave otherwise we may have to chase you away with sticks)."

When clearing the sidewalks of the road which the American President plans to take to Raj Ghat takes precedence over selling Republic Day tickets to patriotic Indians, that is the point when you realise how apt the tourism slogan is. India is truly incredible.
Upon the police officer's suggestion, I decided to try my luck at Jantar Mantar where apparently the second of these mysterious ticket sale counters was located. I stopped enroute in Connaught Place to grab brunch and buy a sweater. The mission to acquire tickets was taking significantly longer than I expected it to.
As I walked towards Jantar Mantar, I could barely see its entrance or the ticket counter. All I could see was a mass of humanity, certainly numbering in the hundreds, in what might (or might not) pass for a queue. I dutifully joined it. However after the queue did not move for a few minutes, I decided to investigate. I was surprised to discover that a couple of hundred people had been queuing for two hours on the vague promise that more tickets might arrive soon. I was wondering whether to join this hopeful exercise when the Indian bureaucracy threw its final and fatal hurdle in my path. At the counter there was a small notice which stated, "Only Aadhaar Card and Election Card shall be accepted as ID proof." Since the only identity document that I was carrying to Delhi was a driving license, I finally admitted defeat in the face of these arbitrary and ever-changing ticket requirements.
I am trying to convince myself that I did not miss much since the gods literally rained on our parade. However, I can't shake of the feeling that a celebration to commemorate the day when we adopted the ideal of equality as a nation should not just be available to the elite with contacts. The ticket sale process definitely needs to be made transparent and publicised, if not reformed and opened to people apart from Delhiites with enough free time to decipher the maze of designated counters.
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