{"id":430,"date":"2020-04-23T10:29:53","date_gmt":"2020-04-23T10:29:53","guid":{"rendered":"http:\/\/lexforti.com\/legal-news\/?p=430"},"modified":"2021-01-17T11:54:56","modified_gmt":"2021-01-17T11:54:56","slug":"the-amendment-to-article-1422-of-ni-act-2015-is-constitutional-madras-hc","status":"publish","type":"post","link":"https:\/\/lexforti.com\/legal-news\/the-amendment-to-article-1422-of-ni-act-2015-is-constitutional-madras-hc\/","title":{"rendered":"The Amendment to Article 142(2) of NI Act, 2015 is Constitutional: Madras HC"},"content":{"rendered":"\n<p><strong> Ronita Biswas | National Law University, Orissa | 28th December 2019 <\/strong><\/p>\n\n\n\n<p><strong>Refex Energy Ltd. v. Union of India &#038; M\/s Passive Infra Projects Pvt. Ltd. (W.P (MD) No. 11150 of 2016 and W.M.P (MD) No. 8571 of 2016<\/strong><\/p>\n\n\n\n<ul><li><strong>Matter<\/strong><\/li><\/ul>\n\n\n\n<p>The case dealt with a writ petition\nchallenging the amendment to Article 142(2) of the Negotiable Instruments Act,\nprimarily on the ground that the amendment goes contrary to the judgment of the\nSC in Dashrath Rupsingh Rathod v. State of Maharastra (AIR 2014 SC 3519).<\/p>\n\n\n\n<ul><li><strong>Petitioner\u2019s contention<\/strong><\/li><\/ul>\n\n\n\n<p>The Petitioner contended that the\nsaid amendment was in violation of the judgement of the SC, which is not\npermissible in law. The Petioner relied on the judgment of Dashrath Rupsingh\nRathod (supra) where the Court held that suit can be instituted against the\ndrawer of the cheque only before the Court within whose jurisdiction the\ndishonour takes place.<\/p>\n\n\n\n<ul><li><strong>Held<\/strong><\/li><\/ul>\n\n\n\n<p>The Court held that the contention of\nthe Petitioner cannot be accepted since it is a well-settled law that\nlegislation can take away the basis of a judgment [Shri Prithvi Cotton Mills\nLtd. etc., v. Broach Borough Municipality and others (AIR 1970 SC 192)].<\/p>\n\n\n\n<p>The Parliament thereafter passed the\nNegotiable Instruments (Amendment) Act, 2015. By way of amendment, a new law\nwas instituted. The offence under s. 138 shall be inquired into and tried only\nby a court within whose local jurisdiction<\/p>\n\n\n\n<ul><li>The branch of the bank where the\npayee\/holder maintains his account is situated (if the cheque is delivered for\ncollection through an account).<\/li><li>The\nbranch of the drawee bank where the drawer maintains his account is situated\n(if the cheque is presented for payment by the payee\/holder).<\/li><\/ul>\n\n\n\n<p>The\nCourt held that by the said amendment the entire basis of the judgment of\nDashrath Rupsingh Rathod (supra) had been removed. The power of the Legislature\nto take away the basis of a judgment by making amendments is well settled. The\nCourt reiterated that the Legislature can take away the basis of a judgment of\na judicial pronouncement by either passing a validating act or making\namendments to the parent Act. The Court also cited other judgments to support\ntheir contention such as State of Karnataka v. Karnataka Pawn Brokers\nAssociation and Ors. (2018 6 SCC 363) and Gujarat Ambuja Cements and Anr. v.\nUnion of India &#038; Anr. (2005 4 SCC 214). <\/p>\n\n\n\n<p>The\nCourt held that the said amendment was constitutionally valid.<\/p>\n\n\n\n<p><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Ronita Biswas | National Law University, Orissa | 28th December 2019 Refex Energy Ltd. v. Union of India &#038; M\/s Passive Infra Projects Pvt. Ltd. (W.P (MD) No. 11150 of 2016 and W.M.P (MD) No. 8571 of 2016 Matter The case dealt with a writ petition challenging the amendment to Article 142(2) of the Negotiable [&hellip;]<\/p>\n","protected":false},"author":167,"featured_media":232,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[28],"tags":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v21.8.1 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The Amendment to Article 142(2) of NI Act, 2015 is Constitutional: Madras HC - LexForti<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/lexforti.com\/legal-news\/the-amendment-to-article-1422-of-ni-act-2015-is-constitutional-madras-hc\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The Amendment to Article 142(2) of NI Act, 2015 is Constitutional: Madras HC - LexForti\" \/>\n<meta property=\"og:description\" content=\"Ronita Biswas | National Law University, Orissa | 28th December 2019 Refex Energy Ltd. v. 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