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‡ The Company

‡ The Scam
‡ Importance of cheques

‡ Section 138 :Negotiable Instruments Act, 1881

- Purpose

‡ How does it work?

‡ Burden of Proof
‡ Consequences
‡ The Ugly Truth
‡ Then why do it?

‡ Signature

‡ Denial Of Transaction
‡ A way of revoking the cheque before it is
presented in the bank for encashment.

‡ A loophole in the Indian Negotiable

Instrumental Act of 1998.

‡ People use it as an instrument to escape

debt or any other liability.
›r. A.P.Chowdhury stated 5 ingredients which must be fulfilled
to prove a person guilty in a case of cheque bouncing:
‡ The cheque is drawn on a bank for the discharge of a legally
enforceable debt or any other liability.

‡ Cheque is returned by the bank

‡ Reason being insufficient balance in the account.

‡ Payee gives a notice to the drawer to pay the amount within

15 days of the receipt of information from the bank

‡ Drawer fails to make the payment within 15 days of the

receipt of the notice.
‡ Abdul Samod Vs Satya Narayan ›ahavir

‡ Held ± ³ Parliament in his wisdom has

confined the offence only to bouncing of
cheques on the grounds of insufficient
balance in the account´.
Cheques returned on some other ground
is not an offence. Therefore, he Satya
Narayan was proved innocent.
Consumer Goods
(›andatory Printing of Cost
of Production and ›aximum
Retail Price)
Act, 2006
Standards of Weights and
(Packaged Commodities)
According to section 43(a) the Federal
Trade Commission (FTC) defines,
³advertising must be truthful and non-
deceptive« advertisers must have
evidence to back up their claims«
and advertisements cannot be unfair.´
Deceptive Advertising
‡ According to advertising law, an
advertisement is considered deceptive if it
contains a statement or omits information that
³is likely to mislead consumers acting
reasonably under the circumstances; and is,
µmaterial¶ - that is, important to a consumer's
decision to buy or use the product.³
Deceptive Advertising
‡ Pay-per-click

‡ Warranties

‡ Label tampering

‡ ›icrosoft v/s palm

‘nfair Advertising and Business
‡ According to the FTC, an advertisement is unfair if
³it causes or is likely to cause substantial consumer
injury which a consumer could not reasonably avoid;
and it is not outweighed by the benefit to

‡ The law does make an exception when consumer

benefits outweigh consumer injury, but you probably
don¶t want to pay the expenses of explaining that in
‘nfair Advertising and Business
‡ Time spent by salesmen

‡ Awareness about the competitor¶s price

‡ Unclaimed scarcity

‡ Claims different from the actual bill

Bait and Switch Tactics
‡ It¶s illegal to advertise a product when you
have no intention of selling that product at the
advertised price. Bait and switch tactics are
illegal, period. If you advertise a product, the
law says that you have to intend to sell it as

‡ Example: cars
‡ http://www.legalserviceindia.com/articles/nego.htm

‡ http://www.vakilno1.com/bareacts/negoinstruact/chapter17/s138.htm

‡ http://www.legalserviceindia.com/articles/sec138.htm

‡ http://www.legalserviceindia.com/laws/consumer_laws.htm

‡ http://www.legalserviceindia.com/article/l18-Dishonour-Of-Security-

‡ http://www.legalserviceindia.com/articles/sec138.htm

‡ http://indiacode.nic.in/incodis/whatsnew/Negotiable.htm
Shiksha ›odi - 35

Shineel Tilwani - 37

Tanya Seth ± 43

Vatsalya Jalan ± 48

V.Priyadharshini ± 49

Vanshika Bhagat - 55