Delhi High Court Refuses To Quash Cheque Bounce Case – Issues Could Not Be Decided Without Proper Evidence And Trial

07 May 2024 8:19 AM

By: Admin

In a recent judgment, the Delhi High Court has refused to quash a cheque bounce case against Shalini Securities Private Limited and Amandeep Singh. The case, which dates back to a financial dispute between Lokesh Thakkar and Amandeep Singh, has seen multiple legal arguments put forth by the defendants.

The court observed that Lokesh Thakkar had invested in a project of Amandeep Singh, who had assured him of significant profits. Lokesh Thakkar alleged that he had paid Rs. 10 crores 40 lakhs to Amandeep Singh through various means, but a dispute arose when he sought to recover his investment and profits. Amandeep Singh, in his capacity as Director of Shalini Securities Private Limited, issued 11 post-dated cheques, each amounting to Rs. 50 lakhs, to Lokesh Thakkar.

However, the cheques were dishonored by the bank due to insufficient funds. A legal notice was sent, but the payment was not made, leading to the filing of a complaint under section 138 of the Negotiable Instruments Act.

M/s Shalini Securities Private Limited and Amandeep Singh contended that Amandeep Singh had resigned as Director of the company in 2012 and was not authorized to issue the cheques in question. They argued that there was no legally enforceable debt due to Lokesh Thakkar.

The court, while refusing to quash the case, noted that these issues could not be decided without proper evidence and trial. It emphasized that Lokesh Thakkar appeared to be the holder of the cheques and was entitled to the presumption under section 139 of the Negotiable Instruments Act. The court stated, "The issues raised in the present complaint require evidence and cannot be decided in the present petitions."

Date of Decision: 14 Sep 2023

SHALINI SECURITIES PRIVATE LIMITED VS LOKESH THAKKAR & ANR