MD is liable for dishonour of cheque
It was only after the amendment to the Negotiable Instrument Act, 1881, with effect from April 1, 1989, that teeth were provided to the enactment by stipulating a specific remedy in the case of bounced cheques. Although, when the Act was amended and a specific provision was made therein, it was believed that the new measure would result in cheap, quick and effective remedy. According to a just reported case, the Supreme Court recently had the opportunity of considering similar issues in the case of SMS Pharmaceuticals Ltd.v Neeta Bhalla  63 SCL 93 (SC). Three issues were raised in that case for the consideration of the apex court, in terms of section 141 of the Negotiable Instruments Act, 1881
M J Antony: Cheques and balances
The number of cheques issued without money in the bank must be quite large, going by the litigation over the dishonoured ones. Last week, the Supreme Court dealt with 16 of them in a common judgement, SMS Pharmaceuticals Ltd vs Neeta Bhalla.