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2019 Supreme(Bom) 2228

IN THE HIGH COURT OF JUDICATURE AT BOMBAY
K.R. Shriram, J.
M. Shantilal & Co - Appellant
Versus
Abbaji Maruti Jadhav - Respondent
Criminal Appeal No. 904 of 1998
Decided On : 14-11-2019

Advocates Appeared:
N.M. Nadar, Advocate, S.V. Marwadi, Advocate, Anamika Malhotra, Advocate

Headnote:

Negotiable Instruments Act, 1881 - Sections 138, 13 and 6 - Indian Contract Act, 1872 - Section 25 - Criminal Procedure Code, 1973 - Sections 91 and 390 - Legally Enforceable Debt - Complainant who is appellant herein was an unpaid vendor - Complainant claims to have supplied various quantities of paints during period and indisputably last supply - Seven bills for a total sum was raised on accused - Last supply was made accused issued cheque which cheque was dishonored on same day on ground account closed - Complainant therefore sent notice to accused vide advocates notice which has been received by accused and accused has replied denying liability which reply was received after complaint was filed - But since no reply was received as contemplated this complaint was filed - Particulars of offence was read over to accused and explained to accused who pleaded not guilty and claimed to be tried - During trial complainant has examined himself and produced documents - Held, Therefore even second question will have to be answered in affirmative - In circumstances once a cheque is drawn for discharge of a time barred debt it creates a promise which becomes an enforceable contract and therefore it cannot be said that cheque is drawn in discharge of debt or liability which is not legally enforceable - Therefore I am satisfied that impugned judgment has to be set aside and is hereby set aside - matter is remanded to trial Court to decide based on evidence already recorded whether complainant has proved ingredients of offence punishable - Dispute relates to year have since passed - Therefore registry to return record and proceedings to trial Court within two weeks - Matter be placed before trial court for directions on which date complainant and accused shall without fail remain present before trial Court either in person or through their duly authorized advocate - Trial court shall hear matter for arguments and deliver its judgment as early as possible and in any event - Appeal stands disposed.

JUDGMENT

K.R.Shriram, J. - This is an appeal impugning an order and judgment dated 16.9.1998 passed by the Addl. Chief Metropolitan Magistrate, 40th Court, Girgaon, Mumbai in a trial for commission of an offence punishable under Section 138 of the Negotiable Instruments Act 1881.

2. The complainant who is the appellant herein was an unpaid vendor. The complainant claims to have supplied various quantities of paints during the period 1992 and indisputably the last supply was on or about 30.6.1992. Seven bills for a total sum of Rs.1,38,897/- was raised on the accused.

On 15.5.1997 almost 5 years after the last supply was made, the accused issued cheque bearing no.548403 for Rs.1,38,897/- which cheque was dishonoured on the same day, i.e., 15.5.1997 on the ground "account closed". The complainant therefore sent notice to the accused vide Advocate''s Notice dated 23.5.1997 which has been received by the accused and the accused has replied denying liability, which reply was received after the complaint was filed. But since no reply was received within 15 days as contemplated under Section 138 of the Negotiable Instruments Act, 1881, this complaint was filed.

3. The particulars of the offence was read over to the accused and explained to the accused who pleaded not guilty and claimed to be tried. During the trial, complainant has examined himself and produced 10 documents. During the cross-examination, two further documents have come on record, one of which is reply received by the complainant to the statutory notice after filing of the case. Another document is summons issued under Section 91 of Cr.P.C. to the bankers which also consists of 5 letters signed by the Manager of the bank.

4. Apart from various arguments which I find have been raised in the written submissions by the Advocate for the accused and the complainant, the main thrust of the accused was that the last transaction was on 30.6.1992, cheque was issued on 15.5.1997 and hence the debt or the liability to the complainant is time barred. And as it is time barred, it is no more a legally enforceable debt or other liability as required under Section 138 of the Negotiable Instruments Act 1881 and hence the complaint was not tenable. The trial Court in view of this legal point raised by the accused, decided to consider whether the debt or the liability in question was legally enforceable and only if the answer to that issue was in the affirmative, felt the need to consider whether the complainant has proved the ingredients of offence punishable under Section 138 of the Negotiable Instruments Act 1881. The trial Court relying on the judgment of a single Judge of the Andhra Pradesh High Court in the case of Girdhari Lal Rathi Vs. P.T.V.Ramanujachari and Anr., (1998) BankJ 127 Equivalent citations : 1997 (1) ALT Cri 509, 1998 (94) CompCas 139 b AP concluded that in case a cheque is issued for a time barred debt and it is dishonoured, the accused cannot be convicted under Section 138 of the Negotiable Instruments Act simply on the ground that debt was not legally enforceable. In view of this conclusion, the trial Court did not consider whether the complainant has proved the ingredients of offence punishable under Section 138 of the Negotiable Instruments Act 1881 and dismissed the complaint. This is the order that is impugned in this appeal.

5. The accused has not been appearing for quite some time. The Court notings'' indicate that warrant of arrest under Section 390 of Cr.P.C. is duly executed and original accused has been released on bail. There is an Advocate Mr.Tushar Joshi who had entered appearance for the accused and his name also appeared in the cause list today. He is not present either.

6. Mr.Nadar appearing for appellant submitted that the Division Bench of our Court in Dinesh B.Chokshi Vs. Rahul Vasudeo Bhatt and Anr., (2012) AllMR(Cri) 3656 has taken a view contrary to the view taken by Andhra Pradesh High Court. Mr.Nadar submitted that Division Bench has held t

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