2-HOUR LAST-DAY CRASH PLAN – NEGOTIABLE INSTRUMENTS ACT

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⚑ NEGOTIABLE INSTRUMENTS ACT

2-HOUR LAST-DAY CRASH PLAN

πŸ• 0–15 MINUTES | SECTION 138 SKELETON (CORE CORE AREA)

Memorise the 6 ingredients (word-perfect):
(Kusum Ingots v. Pennar Peterson)

  1. Cheque drawn on account maintained by accused

  2. Issued for legally enforceable debt

  3. Presented within validity

  4. Dishonour (insufficient funds / equivalent)

  5. Notice within 30 days

  6. Non-payment within 15 days

πŸ“Œ Exam Trick:
If even one ingredient missing β†’ acquittal

πŸ•‘ 15–35 MINUTES | PRESUMPTIONS = MARKS MULTIPLIER

Learn this 3-line formula:

  • S.118(a): Presumption of consideration

  • S.139: Presumption of debt/liability

  • Rebuttal: Preponderance of probability

πŸ“š Quote compulsorily:

  • Rangappa v. Mohan (includes existence of debt)

  • Basalingappa v. Mudibasappa (mode of rebuttal)

🎯 This alone answers 20–25 marks across papers.

πŸ•’ 35–55 MINUTES | SECURITY CHEQUE + STOP PAYMENT

Security Cheque:

βœ”οΈ Covered if liability exists (Sampelly Satyanarayana Rao)

Stop Payment / Account Closed:

βœ”οΈ Covered under S.138
(Modi Cements; Laxmi Dyechem)

πŸ“Œ Examiner favourite trap:
β€œSecurity cheque” β‰  automatic acquittal

πŸ•“ 55–75 MINUTES | COMPANY & DIRECTORS (S.141)

Memorise this 3-step test:

  1. Company must be accused

  2. Specific averment of responsibility

  3. Role at time of offence

πŸ“š Must-quote cases:

  • SMS Pharmaceuticals

  • Aneeta Hada

🚫 One line killer point:
β€œWithout arraigning company β†’ complaint fails”

πŸ•” 75–90 MINUTES | PROCEDURE HOT ZONE

βœ”οΈ Notice: Unclaimed = deemed service
(C.C. Alavi Haji)

βœ”οΈ Multiple dishonours: Fresh cause each time
(MSR Leathers)

βœ”οΈ Jurisdiction: Payee’s bank (2015 amendment)

πŸ•• 90–105 MINUTES | AMENDMENTS & IBC

Section 143A:

Interim compensation up to 20%
(G.J. Raja)

Section 148:

Deposit in appeal (min. 20%)
(Surinder Singh Deswal)

IBC Moratorium:

  • Stayed against company

  • Continues against directors
    (P. Mohanraj)

πŸ•– 105–115 MINUTES | QUICK TRICK QUESTIONS

βœ”οΈ Time-barred debt β†’ Covered (A.V. Murthy)
βœ”οΈ Death of accused β†’ Abatement
βœ”οΈ Power of Attorney complaint β†’ Valid (A.C. Narayanan)
βœ”οΈ Nature of offence β†’ Quasi-criminal
βœ”οΈ Compounding β†’ S.147 (Damodar Prabhu)

πŸ•— 115–120 MINUTES | FINAL EXAM STRATEGY

WRITE ANSWERS LIKE A JUDGE:

  1. Start with Section + Object

  2. List legal ingredients

  3. Apply facts + case-law

  4. End with clear conclusion

πŸ–ŠοΈ Never write without case-law in NI Act answers.

πŸ† EXPECTED RESULT

βœ”οΈ Covers 90–95% of mains questions
βœ”οΈ Maximum marks with minimal material
βœ”οΈ Perfect for last-day confidence boos

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