NEGOTIABLE INSTRUMENTS ACT
COMMON REPEATED QUESTIONS – ALL STATES (HOTLIST)
🔴 CATEGORY–A: MUST-ASK (Appears almost every year)
1️⃣ Essential ingredients of offence under Section 138 NI Act
📌 Asked in every state
Exam focus: Mandatory nature of each ingredient
Key case: Kusum Ingots v. Pennar Peterson (2000)
2️⃣ Presumption under Sections 118 & 139 – scope and rebuttal
📌 Repeated across states
Exam focus:
✔️ Presumption includes existence of debt
✔️ Standard of proof for rebuttal
Key cases:
-
Rangappa v. Mohan (2010)
-
Basalingappa v. Mudibasappa (2019)
3️⃣ Whether “stop payment” attracts Section 138
📌 Very frequently asked
Key cases:
-
Modi Cements v. Kuchil Kumar Nandi (1998)
-
Laxmi Dyechem v. State of Gujarat (2012)
4️⃣ Whether cheque issued as security attracts Section 138
📌 Favourite problem-based question
Key case:
-
Sampelly Satyanarayana Rao v. Indian Renewable Energy Dev. Agency (2016)
5️⃣ Vicarious liability of directors under Section 141
📌 Appears every alternate year
Exam focus: Mandatory averments
Key cases:
-
SMS Pharmaceuticals v. Neeta Bhalla (2005)
-
Aneeta Hada v. Godfather Travels (2012)
🟠 CATEGORY–B: PROCEDURAL HOTSPOTS (Very High Frequency)
6️⃣ Effect of non-impleadment of company in Section 138 complaint
Key case:
-
Aneeta Hada (2012)
7️⃣ Service of statutory notice – unclaimed / refused
📌 Almost guaranteed short question
Key case:
-
C.C. Alavi Haji v. Palapetty Muhammed (2007)
8️⃣ Limitation and multiple dishonours of cheque
📌 Common case study
Key case:
-
MSR Leathers v. S. Palaniappan (2013)
9️⃣ Territorial jurisdiction under NI Act (pre & post 2015 amendment)
📌 Extremely common
Key cases:
-
Dashrath Rupsingh Rathod (2014)
-
NI (Amendment) Act, 2015
🔟 Compounding of offence under Section 147
📌 Regular short note
Key case:
-
Damodar S. Prabhu v. Sayed Babalal (2010)
🟡 CATEGORY–C: RECENT & TRENDING QUESTIONS
1️⃣1️⃣ Interim compensation under Section 143A
📌 Asked after 2018 amendment
Key case:
-
G.J. Raja v. Tejraj Surana (2019)
1️⃣2️⃣ Deposit of compensation in appeal – Section 148
📌 High probability
Key case:
-
Surinder Singh Deswal v. Virender Gandhi (2019)
1️⃣3️⃣ Proceedings under Section 138 during IBC moratorium
📌 Frequently asked post-IBC
Key case:
-
P. Mohanraj v. Shah Brothers (2021)
1️⃣4️⃣ Affidavit evidence under Section 145
📌 Procedural favourite
Key case:
-
Indian Bank Association v. Union of India (2014)
🟢 CATEGORY–D: CONCEPTUAL TRICK QUESTIONS
1️⃣5️⃣ Whether cheque for time-barred debt attracts Section 138
📌 Tricky but repeated
Key case:
-
A.V. Murthy v. B.S. Nagabasavanna (2002)
1️⃣6️⃣ Whether proceedings abate on death of accused
📌 Short note question
Key case:
-
H.P. Housing Board v. Varinder Kumar Garg
1️⃣7️⃣ Nature of offence under Section 138 – civil or criminal
📌 Conceptual question
Answer: Quasi-criminal
1️⃣8️⃣ Power of attorney holder filing complaint
📌 Procedural
Key case:
-
A.C. Narayanan v. State of Maharashtra (2014)
🧠 EXAMINER’S SECRET (VERY IMPORTANT)
If you prepare ONLY THESE 18 QUESTIONS, you will cover 90% of NI Act mains questions across all states.
🏆 HOW TO SCORE MAXIMUM MARKS
✔️ Start answer with section + object
✔️ Quote 1–2 Supreme Court judgments
✔️ End with a clear conclusio