Negotiable Instruments Act

Findings of a Civil Court binding on Criminal Court? SC clears the air

Summary: A persistent misconception in legal discourse is that findings or determinations of a civil court are binding on a criminal court, despite no such rule being codified in the Indian Evidence Act, 1872, or its successor statute, the Bharatiya Sakshya Adhiniyam, 2023. This belief often leads to the argument that a civil judgment should conclusively govern subsequent criminal proceedings. However, this position does not reflect the true legal framework. The Hon’ble Supreme Court’s decision in Prem Raj v. Poonamma Menon & Anr., tracing the evolution of law on this point, provides much-needed clarity, reaffirming the distinct nature, standards of proof, and purposes of civil and criminal proceedings, and explaining the limited evidentiary value, rather than absolute binding effect, of civil court findings in criminal trials.

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Navigating Legal Crossroads: Interplay between IBC and NI Act

INTRODUCTION

The intersection between the Insolvency and Bankruptcy Code, 2016 (“IBC”), and the Negotiable Instruments Act, 1881 (“NI Act”), has caused significant judicial deliberation, particularly concerning creditor rights, financial discipline, and the resolution of financial distress. Section 138 of the NI Act holds the drawer of the cheque liable in case of dishonour of cheque due to insufficient funds. The provision imposes penal consequences on the drawer, serving as a deterrent against indiscriminate issuances of cheques and safeguarding creditors’ interests.[1]

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Interim Moratorium Not An Escape From Consumer Penalties: Supreme Court Clarifies

INTRODUCTION

While expanding the jurisprudence of the Insolvency and Bankruptcy Code, 2016, (“IBC”), the Division Bench of the Supreme Court (“SC”), in Saranga Anilkumar Aggarwal v. Bhavesh Dhirajlal Sheth and Ors.,[1] held that an interim moratorium under the IBC does not apply to execution proceedings for penalties imposed under the Consumer Protection Act, 1986 (“Consumer Protection Act”). Once an insolvency application is admitted by the National Company Law Tribunal, moratorium under the IBC comes into effect, which is a temporary suspension of legal actions against the debtor.

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Protection Laws for alleged deficiency in services

Introduction

An important question on whether advocates are liable for alleged deficiency in services under the Indian Consumer Protection Act has been put to rest by the Hon’ble Supreme Court of India. In a significant ruling, the Hon’ble Supreme Court, vide its recent judgment in Bar of Indian Lawyers v D.K. Gandhi PS National Institute of Communicable Diseases and Anr.[1],has held that advocates would not be covered under the ambit of Consumer Protection Act, 1986 (“CPA 1986”), as re-enacted by the Consumer Protection Act 2019 (“CPA 2019”) (‘collectively referred as Acts/ consumer law framework’). Until the said decision, there was no definite pronouncement on the concerned issue.

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