⚡ NEGOTIABLE INSTRUMENTS ACT

2-HOUR LAST-DAY CRASH PLAN

🕐 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

📌 Exam Trick:
If even one ingredient missing → acquittal

🕑 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

📚 Quote compulsorily:

• Rangappa v. Mohan (includes existence of debt)

• Basalingappa v. Mudibasappa (mode of rebuttal)

🎯 This alone answers 20–25 marks across papers.

🕒 35–55 MINUTES | SECURITY CHEQUE + STOP PAYMENT

Security Cheque:

✔️ Covered if liability exists (Sampelly Satyanarayana Rao)

Stop Payment / Account Closed:

✔️ Covered under S.138
(Modi Cements; Laxmi Dyechem)

📌 Examiner favourite trap:
“Security cheque” ≠ automatic acquittal

🕓 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

📚 Must-quote cases:

• SMS Pharmaceuticals

• Aneeta Hada

🚫 One line killer point:
“Without arraigning company → complaint fails”

🕔 75–90 MINUTES | PROCEDURE HOT ZONE

✔️ Notice: Unclaimed = deemed service
(C.C. Alavi Haji)

✔️ Multiple dishonours: Fresh cause each time
(MSR Leathers)

✔️ Jurisdiction: Payee’s bank (2015 amendment)

🕕 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)

🕖 105–115 MINUTES | QUICK TRICK QUESTIONS

✔️ Time-barred debt → Covered (A.V. Murthy)
✔️ Death of accused → Abatement
✔️ Power of Attorney complaint → Valid (A.C. Narayanan)
✔️ Nature of offence → Quasi-criminal
✔️ Compounding → S.147 (Damodar Prabhu)

🕗 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

🖊️ Never write without case-law in NI Act answers.

🏆 EXPECTED RESULT

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