IMPORTANT POINT
Dishonour of cheque – Cheque itself is a promise to pay even if debt is barred by time.

JUDGMENT :

A.S. Bopanna, J.

1. Leave granted.

2. The appellant is assailing the judgment dated 12.02.2019 passed by the High Court of Andhra Pradesh at Amravati in Criminal Petition No. 12675 of 2018 and analogous petitions. Through the judgment, the High Court while allowing the petitions before it, quashed the criminal proceedings against Respondent No. 2, being C.C. No.681 of 2017 and analogous complaints on the file of II Additional Chief Metropolitan Magistrate at Visakhapatnam. The appellant is the complainant in CC No. 681 of 2017 and the other complaints, filed against the accused – respondent no.2 under Section 138 and 142 of the Negotiable Instruments Act (‘NI Act’ for short). The appellant is therefore before this Court claiming to be aggrieved by the said judgment.

3. The brief facts of the case as narrated in the first of the above appeal are that the appellant and respondent no.2 are known to each other. Due to their acquaintance respondent no.2 approached the appellant to borrow a sum of Rs 20,00,000/-stating that he required the amount to finance his son’s higher education to study medicine and for domestic expenses. In order to assure the re-payment, respondent no.2 executed a promissory note on 25.07.2012 wherein it was agreed that the amount was to be repaid in full and along with interest at 2% per month. There was a condition in the promissory note that the full and final payment will be made by December, 2016. The respondent No.2 failed to comply with the condition in the promissory note but on 28.04.2017 issued a cheque bearing No.548045 drawn on the Vijaya Bank, J.P. Marg, Visakhapatnam for a sum of Rs. 10,00,000/-towards partial discharge of the debt. The cheque when presented for collection was returned by the Bank on 15.05.2017 due to insufficient funds to honour the cheque. The appellant got issued a legal notice dated 24.05.2017 to respondent No.2, which was replied to by respondent No.2 on 01.06.2017. The appellant sent a rejoinder to the said reply on 03.06.2017. Respondent No.2 sent a reply to the said rejoinder on 07.06.2017. The appellant thereafter filed complaints under Section 138 of the NI Act on 11.07.2017 before the Special Magistrate, Vishakhapatnam vide CC No. 681 of 2017 and analogous complaints. The learned Special Magistrate in accordance with law, took cognizance of the complaint under Section 138 of NI Act against the respondent No.2 accused vide order dated 14.09.2018 and ordered the issue of summons.

4. The fact situation in the analogous appeals is also similar except for the date of the promissory note and the date of the cheque. However, in all the promissory notes the period for repayment indicated is the same and all other facts arising for consideration are similar. Hence for the purpose of narration and consideration of the law, the facts relating to the appeal arising out of SLP(Crl.) No.7455 of 2019 is referred herein.

5. The respondent No.2 herein however filed the petition in CRL.P No.12675 of 2018 and analogous petitions under Section 482 of the Criminal Procedure Code, 1973 (for short ‘CrPC’) before the High Court praying to quash proceedings under CC No. 681 of 2017 and analogous complaints. The High Court allowed the petitions filed under Section 482 CrPC by respondent no.2 herein, noting various judgments by this Court and the various High Courts, and observing that the limitation for enforcing the promissory notes had expired much prior to the issuance of the cheques in question. As such, it was held this was a fit case for quashing since the complaint filed seeking prosecution was not in respect of a legally recoverable debt.

6. Mr. Sanchit Garga, learned counsel appearing on behalf of the appellant while assailing the judgment passed by the High Court, would contend that the High Court did not appreciate that the promissory note executed by respondent No.2 has th