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2005 Supreme(SC) 918

S.H.KAPADIA, Y.K.SABHARWAL, B.N.SRIKRISHNA
STATE FARM CORPN. OF INDIA LTD. – Appellant
Versus
NIJJER AGRO FOODS LTD. – Respondent


ORDER

1. Leave granted.

2. Two complaints under Section 138 of the Negotiable Instruments Act were filed by the appellant against the respondents. In those complaints, the Metropolitan Magistrate, New Delhi issued summons to the respondents. An application filed by them for dropping the proceedings was dismissed in terms of the order of the learned Magistrate, dated 26-4-1999, holding that "whether the cheques were issued for discharge of debt/liability can be decided only after recording evidence. At the stage of summoning the respondents the court has just to see whether prima facie case is made out against the accused or not under Section 138 of the NI Act". Further, it was held, whether the respondents have made payment by way of bank drafts in lieu of the cheques which are subject-matter of complaints can also be decided at the trial and not at the stage of summoning and by way of an application seeking to drop the criminal complaint proceedings. Quite strangely, the High Court, by the impugned judgment dated 14-10-2003, while exercising revisional jurisdiction, examined the defence on merits and allowed the criminal revision petition filed by the respondents and reversed the d



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