Negotiable Instruments Act – Quashing of Complaint – Petitioner sought quashing of complaint under Section 138 NI Act and proceedings against him – Allegation of cheque dishonor issued by respondent No. 3 from personal account, not from company’s account – High Court held petitioner could not be held liable as cheque was not issued by him or company – No vicario...
Negotiable Instruments Act – Dishonour of Cheque – Section 138 NI Act – Conviction Upheld – The accused issued a cheque for ₹150,000 in partial discharge of liability towards the complainant for goods supplied. The cheque was dishonoured for insufficient funds, and the accused failed to make payment despite receiving a notice of demand. Both the Trial Court and the Appell...
Negotiable Instruments Act – Cheque Dishonour – The petitioner, Rajesh Exports Ltd., sought to quash the order staying proceedings in a cheque bounce case where the respondent had issued a cheque which was dishonoured – The Magistrate had stayed the proceedings invoking Section 446 of the Companies Act due to the winding up of the respondent’s company – Court directed...
Civil Law – Recovery of Money – Execution of Promissory Note – Appellant contested the execution of the promissory note by the deceased Ramachandran, alleging it was fabricated – Trial court dismissed the suit for lack of conclusive proof, but the first appellate court reversed the decision, holding that oral evidence of witnesses substantiated the claim despite adverse exp...
Civil Law – Cheque Bounce – Suit for Recovery of Money – Plaintiff, a coffee trading company, claimed that the defendant issued a cheque for ₹14,07,456 to clear outstanding dues – Cheque was dishonored due to insufficient funds – Trial Court dismissed the suit, finding that the cheque was issued in favor of the company's chairman in his personal capacity, not th...
Civil Law – 138 NI Act - Recovery of Money – Cheque Issued in Personal Name of Managing Director – Plaintiff Company’s Locus Standi – The plaintiff company filed a suit for recovery of money based on a cheque issued in the personal name of its Managing Director, V.G. Siddartha Hegde – Held: The company, being a separate legal entity from its members, had no righ...
Cheque Bounce – Section 138 of the NI Act – Dishonour of Cheque – Conviction Upheld – Accused convicted under Section 138 of the NI Act for issuing a cheque of ₹1,50,000 that was dishonoured due to insufficient funds – Trial Court found that the accused did not dispute his signature on the cheque, and failed to rebut the presumption of liability – Appeal to Se...
Negotiable Instruments Act – Section 138 – Security Cheque vs. Legally Enforceable Debt – Conviction Set Aside – Petitioners, Concord Exports, challenged their conviction for cheque dishonor under Section 138, asserting that the cheque for ₹33,51,876 was issued as security in a business transaction and not towards a legally enforceable debt – The trial court had sen...
Negotiable Instruments Act – Section 138 – Compounding of Offense – Consent Required – The High Court compounded an offense under Section 138 of the N.I. Act without the complainant's consent, invoking Section 482 Cr.P.C. and Section 147 of the N.I. Act – Held: Compounding under Section 147 of the N.I. Act requires the complainant's consent – The High Co...
Criminal Law – Dishonour of Cheque – Appeal Against Acquittal – Application against the acquittal judgment in a case involving the dishonour of a cheque under Section 138 of the Negotiable Instruments Act – The respondent was acquitted by the trial court on the grounds that he successfully rebutted the presumption under Section 139 of the NI Act – The applicant-appell...