1998 Supreme(SC) 688

SUPREME COURT OF INDIA
M. K Mukherjee, Syed Shah Mohammed Quadri
MARUTI UDYOG LTD., APPELLANT
Versus
NARENDER AND OTHERS, RESPONDENTS.
Criminal Appeals Nos. 706-715 of 1998 (Arising out of SLPs (Crl.) Nos. 465, 473, 466, 469, 467, 470, 471, 475, 477 and 486 of 1998),
decided on July 24, 1998.

Section 139 of the Negotiable Instruments Act creates a presumption that the holder of a cheque received it for the discharge of any liability unless the contrary is proved.

Headnote:

Negotiable Instruments Act - Section 139 - Presumption of receipt of cheque for discharge of liability

Fact of the Case:

The High Court entertained and accepted the plea of the accused-respondent at the initial stage of the proceedings and quashed the complaints filed by the appellant.

Finding of the Court:

The court found that the High Court was not justified in quashing the complaints, as per the express provision of Section 139 of the Negotiable Instruments Act, which presumes that the holder of the cheque received it for the discharge of any liability unless the contrary is proved.

Issues: The issue was whether the High Court was justified in quashing the complaints filed by the appellant at the initial stage of the proceedings.

Ratio Decidendi: The court relied on Section 139 of the Negotiable Instruments Act, which creates a presumption regarding the receipt of a cheque for the discharge of any liability, and held that the High Court was not justified in accepting the plea of the accused-respondent and quashing the complaints.

Final Decision: The appeals were allowed, the impugned orders of the High Court were set aside, and the trial court was directed to proceed with the complaints in accordance with the law.