internship report for law students

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AMITY UNIVERSITY, Uttar Pradesh
Internship Weekly Progress Report
Monday:(28/05/18)
In the first day of the second week I further researched on the
Negotiable Instrument Act and wrote important points on
BILL OF EXCHANGE (Sec. 5)
A ‘bill of exchange’ is an instrument in writing containing an
unconditional order signed by the maker directing a certain person
. To pay a certain sum of money only to – (a) a certain person ; or
(b) the order of a certain person; or (c) the bearer of the
instrument.
Essentials characteristics of a bill of exchange
(a) It must be in writing
(b) It must contain an express order to pay
(c) The order to pay must be definite and unconditional
(d) It must be signed by the drawer
(e) The sum contained in the order must be certain
(f) The order must be to pay money only

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(g) Drawer, drawee and payee must be certain (usually, same
person is the drawer and payee)
(h) It must be stamped.
Parties to a bill of exchange
Drawer • The person who draws the bill (i.e.the person who makes
the bill) is called as drawer. • His liability is secondary and
conditional • His liability is primary and conditional until the bill is
accepted.
Drawee • The person on whom the bill is drawn is called as
drawee. • On acceptance of the bill (a) he is called as acceptor; (b)
he becomes liable for the payment of the bill; (c) his liability is
primary and unconditional.
Payee. • The person to whom money is to be paid is named in the
bill. • He is called as payee.
The words “or the bearer of the instrument” is inoperative is view
of section 31 of the Reserve Bank of India Act, 1934, which provides
that no person in India other than Reserve Bank of India or Central
Government can make or issue promissory note payable to bearer of
the instrument.
CHEQUE (Sec.6)
A cheque is a bill of exchange drawn on a specified banker and not
expressed to be payable otherwise than on demand (i.e. it is always
payable on demand) and it includes – - the electronic image of
truncated cheque; and - a cheque in electronic from.
Essentials characteristics of a cheque

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(a) It must be in writing
(b) It must contain an express order to pay
(c) The order to pay must be definite and unconditional
(d) It must be signed by the drawer
(e) The sum contained in the order must be certain
(f) The order must be to pay money only
(g) Drawer, drawee and payee must be certain
(h) It is always drawn upon a specified banker
(i) It is always payable on demand
• A cheque must contain all the characteristics of a bill of exchange
• A cheque does not require (a) stamping ; or (b) acceptance.
Difference between electronic cheque and truncated cheque
Electronic cheque Truncated cheque
Paper is not used at any stage in
creation of an electronic cheque.
A truncated cheque is nothing
but a paper cheque, which is
truncated during the clearing
cycle.
Digital signatures must be used
to create an electronic image of
cheque. Thus, an electronic
cheque contains digital
signature.
The paper cheque, which is
afterwards truncated, contains
no digital signature. The
signatures in ink appear on the
truncated cheque.
The original writing of an
electronic cheque is in electronic
form.
The – original writing of a
truncated cheque is on paper
duly – signed in ink. After the
paper cheque is converted into

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electronic form, it is truncated
and thus, it becomes a truncated
cheque.
Tuesday, (29/05/18)
On the second day of my internship I read the capacity of persons to
be a party of negotiable instrument
CAPACITY OF A PERSON TO BE A PARTY TO A NEGOTIABLE
INSTRUMENT (Sec. 26)
Person must be capable of contracting A person shall be liable on a
negotiable instrument (by reason of making, drawing, accepting
endorsing, delivering or negotiating a negotiable instrument) only if
he is capable of contracting according to the law to which he is
subject.
Liability in case of a minor • A minor may draw, endorse, deliver
and negotiate any negotiable instrument. • All the parties shall be
bound on such negotiable instrument. • However, the minor shall
not be bound on such negotiable instrument.
MATURITY OF A NEGOTIABLE INSTRUMENT (Sec.22)
Maturity of a negotiable instrument Days of grace - It means the
date on which the negotiable instrument falls due for payment. - A
negotiable instrument which is payable otherwise than on demand
is entitled to 3 days of grace.

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NEGOTIATION – MEANING AND METHODS (Sec.14)
Meaning of negotiation Negotiation means transfer of a negotiable
instrument to any other person so an to constitute that person the
holder of such negotiable instrument. Methods of negotiation
Negotiation by delivery • A bearer instrument may be negotiated by
delivery. • The delivery must be voluntary Negotiation by
endorsement and delivery An order instrument can be negotiated
only by way of - (i) endorsement; and (ii) delivery.
MEANING OF ENDORSEMENT (Sec. 15)
Endorsement means Signing - on the face or back of negotiable
instrument; or - on a slip of paper annexed to the negotiable
instrument By - the holder of negotiable instrument For the
purpose of - negotiating such negotiable instrument.
ESSENTIAL REQUEREMENTS OF A VALID ENDORSEMENT
(Sec.15 and 16)
Writing The endorsement must be in writing
Signed The endorsement shall not be valid unless it is signed.
By holder The endorsement shall be valid only if the negotiable
instrument is signed by the holder.
Wednesday, (30/05/18)
On the third day of my internship guide gave me legal research topic
on the dishonor of cheque and it’s recent trends.
RECENT TRENDS: Negotiable Instruments have been used in commercial
world since long as one of the convenient modes for transferring money.

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Developmentin Bankingsector and with the openingof new branches, cheque
become one of the favourite Negotiable Instruments. When cheques were
issued as a Negotiable Instruments, there was always possibility of the same
being issued without sufficient amount in the account. With a view to protect
drawee of the cheque need was felt that dishonour of cheque he made
punishable offence. With that purpose Sec.138 to 142 were inserted by
Banking Public Financial Institutions and Negotiable Instruments clause
(Amendment) Act, 1988. This was done by making the drawer liable for
punishments in case of bouncing of the cheque due to insufficiency of funds
with adequate safeguards to prevent harassment of an honest drawer.
OBJECT:
The object of this amendment Act is: 1. To regulate the growing business,
trade, commerce and Industrial activities. 2. To promote greater vigilance in
financial matters. 3. To safeguard the faith of creditors in drawer of cheque.
(Krishna vs. Dattatraya 2008(4) Mh.L.J.354 (Supreme Court)
However, it was found that punishment provided was inadequate, the
procedure prescribed cumbersome and the courts were unable to dispose of
the cases expeditiously and in time bound manner. Hence, the Negotiable
Instruments (Amendment and Miscellaneous provisions Act 2002) was
passed. The provisions of sec.143 to 147 were newly inserted and provisions
of section 148, 141, 142 were amended.
Section 138 of Act deals with dishonour of cheques. It has no concern with
dishonour of other negotiable instruments. INGREDIENTS:
The ingredientsof the offence as contemplated under Sec.138 of the Act are as
under :
1. The cheque must have been drawn for discharge of existing debt or
liability. Legally recoverable debt: In Somnath vs. Mukesh Kumar, 2015(4)
Law Herald 3629 (P&H) it was held by Hon'ble High Court the complaint
under Section 138 is not maintainable when the cheque in question had been

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issued qua a time barred debt. Similarly, supari money for commission of
crime is not legally recoverable debt and complaint under Section 138 is not
maintainable in such a case.
2. Cheque must be presented within 3 months or within validity period
whichever is earlier.
3. Cheque must be returned unpaid due to insufficient funds or it exceeds the
amount arranged.
4. Fact of dishonour be informed to the drawer by notice within 30 days.
5. Drawer of cheque must fail to make payment within 15 days of receipt of
the notice.
PRESUMPTIONS:
There is presumptions under Section 118 and 139 of the Negotiable
Instruments Act in favour of holder of the cheque. Until contrary is proved,
presumption is in favour of holder of cheque that it has been drawn for
discharge of debt or liabilities. However, it is rebutable one and accused can
rebut it without entering into witness box, through crossexamination of the
prosecution witnesses. Complainant is not absolved from liability to show that
cheque was issued for legally enforceable debt or liability. Burden on accused
in such case would not be as light as it is in the cases under sec.114 of the
Evidence Act. In case of “ Goa Plast Pvt. Ltd. vs. Shri Chico
Ursula D' Souza 1996 (4) All MR 40” relations between accused and
complainant were of employee and employer. No evidence led to show that
accused was liable to pay any due or part thereof and thus liability was not
proved. Similarly, it was not proved that the cheque was given towards those
liabilities. Accused much prior to presentation of cheques to the Bank had
appraised the complainant that he was not liable to pay any amount, and
therefore, stopped payment. Bombay High Court had observed that
complainant failed to prove that cheque was issued for discharge of legal
liabilities.
Thursday:(31/05/18)

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On the Fourth day of my internship my guide sent me to see the cause list
of the court and I wrote some of the abbreviations of the same .
CASE TYPES APPELLATE SIDE Main Case Types
 WRIT APPEAL : W.A.
 FIRST APPEAL : A.S.
 SECOND APPEAL : S.A.
 ORIGINAL SIDE APPEAL : O.S.A.
 SPECIAL TRIBUNAL APPEAL : S.T.A.
 CIVIL MISCELLANEOUS APPEAL : C.M.A.
 CIVIL MIS.SECOND APPEAL : C.M.S.A.
 LETTERS PATENT APPEAL : L.P.A.
 SPECIAL TRIBUNAL PETITION : S.T.P.
 CONTEMPT APPEAL : CONT.A.
 CROSS OBJECTION : CROSS.OBJ.
 TRADE MARKS APPEAL : T.M.A.
 TRADE MARKS SECOND APPEAL : T.M.S.A.
 TAX CASES : T.C.
 TAX CASE APPEAL : T.C.A.
I arrange all the files of Sir’s case I have read various case files also . I
prepared rough arguments of the same I observed the format of the writ
petition my guide gave me the general introduction of the trade unions act
1926.
Friday:(01/06/18)
On last day of the week my internship guide gave me a legal research on the
topic trade unions act 1926 and I researched on the act and wrote the
important points related to it .
Definition of Trade Union:

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Trade Unions means any combina-tion, whether temporary or permanent,
formed primarily for the purpose of:
(a) Regulating the relations between
(1) Workmen and employers; or
(2) Workmen and workmen; or
(3) Employers and employers; or
(b) For imposingrestrictive conditionson the conductof any trade of business
and includes any federation of two or more unions.
2. Registration Trade Unions:
Under the Act, registration of unions is not compulsory though it is always
desirable to have a Trade Union registered.
The registration gives immunity to its officers and members against civil and
criminal proceedings under certain circumstances. An un-registered trade
union is not necessarily unlawful.
Before a trade union is granted registration, it is required to comply with
certain formalities.
It has to sponsor at least seven members who may apply by filing an
application for registration to the registrar of the Trade Unions of the State in
which the head office or registered office, as the case may be, of the Trade
Union is to be located.
A Trade Union is not entitled for registration unless the executive thereof is
constituted in accordance with the provisions of the Act and its rules for the
following matters:
(a) Name of the Trade Union
(b) A copy of the rules
(c) Names, occupations and addresses of members making applica-tion.
(d) Titles, names, ages, addresses and occupations of its office bearers.

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(e) Its assets and liabilities, if the union has existed for more than a year
before the date of application.
3. Cancellation of Registration:
The Registrar of Trade Unions is authorised to withdraw or cancel the
registration under the following circum-stances:
(a) On the application of the Trade Union to be verified in the pre-scribed
manner; or
(b) If the registrar is satisfied that the certificate of registration has been
obtained by fraud or mistake or that the Trade Union has ceased to exist or
has willfully and after notice from the Registrar contra vended any provision
of the Act or allowed any rule to continue in force which is inconsistent with
any provision of the Act or the rule as the case may be.
Two months’ previous notice in writing, specifying the grounds for
cancellation, is necessary to be given by the Registrar before cancelling or
withdrawing the certificate.
4. Procedure for Change in Name:
Any registered Trade Union may with the consent of not less than two-third of
the total number of its members changes the name.
5. Dissolution of Trade Union:
When a registered Trade Union is dissolved, a notice signed by the secretary,
and seven members of the union is required to be sent to the Registrar within
14 days of the dissolution.
6. Membership:
The right of membership of a trade union is avail-able to a minor who is not
below 15 years of age but the membership of the executive is not available to
a person (1) if he has not attained the age of 18 years and (2) if he has been
convicted for by a court in India of any offence involving moral turpitude and
sentenced to imprisonment, unless a period or 5 years has elapsed since his
release.

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7. General and Political Funds:
The trade union must have a gen-eral fund. It may or may not have political
fund.
Contributions to the political fund, if made, must be made separately and
spent to promote the civil and political interests of its members.
These are separate fundsand each mustbe spent for the purposeslisted in the
Act.
Contribution to political fund is not compulsory.
8. Legal Protections to Trade Unions against Civil and Criminal actions.
As a legal person the Trade Union is protected:
(a) Against being charged as a criminal conspiracy,
(b) In certain cases against suits in civil courts.
Section 18, sub-clause (1) states: “no suit or other legal proceeding shall be
maintainable in any civil court against any registered Trade Union or any
office bearer or mem-ber thereof in respect of any act done in contemplation
or furtherance of a trade dispute to which a member of the trade union is a
party on the ground only that such act induces some other person to break a
contract of employ-ment, or that it is an interference with the trade, business
or employment of some other person or with the right of some other person
to dispose of his capital or his labour as he wills.”
9. Obligation:
A registered union must send to the Registrar of Trade Unions an audited
statement of its income and expenses for the year ending December 31 and
the yearly assets and liabilities on that data.

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