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Saloni Jain is an Associate (Level 2) in the Dispute Resolution practice at the Mumbai Office of Cyril Amarchand Mangaldas. She can be reached at saloni.jain@cyrilshroff.com

The “Security” Defence in Cases relating to Dishonour of Cheques – Not a Get-Out-Of-Jail-Free Card

INTRODUCTION

The Supreme Court, in the case of Sripati Singh vs. The State of Jharkhand & Anr[i], has provided much needed clarity on the often-used defence of a cheque having been issued as ‘security’ in proceedings under the Negotiable Instruments Act, 1881 (the Act). The Court held that a cheque issued by way of security, if dishonoured, would attract the provisions of the Act, if the same is issued in consequence of a legally enforceable debt, which has become recoverable at the time of its presentation.


Continue Reading The “Security” Defence in Cases Relating to Dishonour of Cheques – Not a Get-Out-Of-Jail-Free Card

Arbitral Tribunal

INTRODUCTION

Recently, in the case of Godrej Properties Ltd. v. Goldbricks Infrastructure Pvt. Ltd.[i], the Hon’ble Bombay High Court has held that an arbitral tribunal cannot pass ex-parte orders on the mere filing of an Application under Section 17 of the Arbitration and Conciliation Act, 1996 (the Act) without giving the parties an opportunity to be heard. The Court has further distinguished the powers of an arbitral tribunal to pass interim orders under the Act from those enjoyed by a Civil Court under the Code of Civil Procedure, 1908 (CPC).


Continue Reading Parties to be Given an Advance Notice of Hearing – The Bombay High Court Sets Aside an Ex-Parte Order Passed by the Arbitral Tribunal