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B. SUDERSHAN REDDY, J. M. PANCHAL
Shankar Lal – Appellant
Versus
Sanyogita Devi (Dead) Through Lrs. – Respondent
The legal document clarifies that the rights of a cheque holder in due course, including their legal heirs, extend to filing a complaint under Section 138 of the Negotiable Instruments Act even after the death of the original holder. The court has emphasized that rights devolve upon the heirs by operation of law, allowing them to step into the shoes of the deceased holder and pursue legal action for dishonored cheques (!) (!) .
Furthermore, the document highlights that the act of filing a complaint under Section 138 is permissible by the legal heirs, provided they are the rightful successors to the estate of the deceased holder in due course. The cause of action for such a complaint survives the death of the original holder, and the legal heirs are entitled to initiate proceedings accordingly (!) .
The court also reaffirmed that the statutory provisions require complaints under Section 138 to be made by the payee or holder in due course, but do not prohibit the legal heirs from exercising this right after the death of the original holder (!) (!) .
In conclusion, the legal heirs of a cheque holder can file a complaint under Section 138 after the holder's death, as their rights to do so are recognized by law and rights pass to them by operation of law (!) (!) .
ORDER
This appeal by special leave is directed against the judgment and order dated 25th April, 2000 passed by the learned Single Judge of the High Court of Madhya Pradesh, Bench at Indore in Criminal Revision No. 1702 of 1999 by which the Revision Petition filed by the appellant was dismissed.
2. The appellant having obtained a loan of Rs. 2,50,000/- (Rupees two lakhs and fifty thousand) from one Dhairyasheel Rao Deshmukh, issued five post dated cheques in the denomination of Rs.50,000/- (Rupees fifty thousand) each in the name of Dhairyasheel Rao Deshmukh. The said Dhairyasheel Rao Deshmukh died. The respondent being the wife and legal heir of the deceased Dhairyasheel Rao Deshmukh presented the cheques to the concerned bank and the same were dishonoured. Thereafter, the respondent gave statutory notice to the appellant for payment of the amount. The appellant did not comply with the demand as 2 required in the notice got issued by the respondent. This was followed by a complaint, filed by the respondent herein, under Section 138 of the Negotiable Instruments Act, 1881 (for short "the Act") against the appellant. The appellant resisted the complaint by contending that the appellant
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