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RAKESH KAINTHLA
Geeta Devi – Appellant
Versus
UCO Bank – Respondent
JUDGMENT
Rakesh Kainthla, J.—The petitioner has filed the present petition for quashing complaint No. 464 of 2019, pending before the learned Additional Chief Judicial Magistrate, Court No.2, Shimla (learned Trial Court). (Parties shall hereinafter be referred to in the same manner as they were arrayed before the learned Trial Court for convenience).
2. Briefly stated, the facts giving rise to the present petition are that the respondent/complainant filed a complaint before the learned Trial Court for the commission of an offence punishable under Section 138 of the Negotiable Instruments Act (NI Act). It was asserted that the complainant is a body corporate constituted under the Banking Companies (Acquisition and Transfer of Undertaking) Act, 1970 having various branches all over India. The accused approached the petitioner for providing financial assistance of Rs.10.00 lacs for obtaining office accommodation. The bank agreed to provide financial assistance. The accused executed various documents. The loan was repayable in monthly instalments. The accused defaulted in repayment of the schedule. She issued a cheque for Rs.1,19,423/- towards the overdue loan liability and other charg
Dishonour of cheque – Consequences of scuttling criminal process at a pre-trial stage can be grave and irreparable.
The court reiterated that issues around cheque liability under Section 138 NI Act must be decided at trial, underscoring the necessity for allegations in complaints to be accepted as true at the quas....
The issuance of a cheque implies liability under the NI Act, and courts should not quash complaints based on disputed facts without trial.
(1) Dishonour of cheques – Legal presumption of cheque having been issued in discharge of liability must also receive due weightage.(2) To non-suit complainant, at the stage of summoning order, when ....
The court held that a cheque issued as security does not invalidate a complaint under Section 138 of the Negotiable Instruments Act, and factual disputes must be settled at trial.
The court reaffirmed that the presumption of liability under Section 139 of the Negotiable Instruments Act must be established through evidence at trial, not pre-trial.
Dishonour of cheque – In exceptional circumstances, Court may take notice of attending circumstances to conclude that continuance of proceedings would amount to abuse of process of Court, or where qu....
(1) Dishonour of cheques – Under Section 138 of NI Act, a separate cause of action arises upon each dishonour of a cheque provided statutory sequence of presentation, dishonour, notice, and failure t....
Liability under Section 141 of the NI Act requires being in charge and responsible for the company's affairs. The court's decision was influenced by the interpretation of this legal provision.
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