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2004(1) Bankmann 347 (A.P.)
ANDHRA PRADESH HIGH COURT
Ch. S.R.K. Prasad, J.
M/s. Avon Organics Ltd. — Appellant
versus
M/s. Pioneer Products Ltd.
and others — Respondents
Crl. Appeal No. 181 of 1999
Decided on 4.7.2003

Advocates:
Counsel for the Parties:
For the Appellant: Mr. CH Ramesh Babu.
For the Respondents Nos. 1 & 2: Mr. K. Vijayendra Reddy.
For the Respondent No. 3: P.P.

IMPORTANT POINTS
(a)A blank cheque cannot be enforced even though issued towards discharge of legal liability.
(b)To attract provisions of Section 138 of Negotiable Instruments Act, the cheque must be drawn for certain amount.

Headnote:Negotiable Instruments Act, 1881—Sections 5, 6, 138, 141, 142—Blank cheque—Material alteration—Cheque in issue drawn and handed over to complainant without specifying the date and amount—Subsequently, complainant without the consent of drawer, filled up the amount portion in figures and words and also put date of his choice—Dishonour of cheque on presentation—Whether the said dishonour falls under Section 138 of the Act?—(No).(Paras 7 & 10)

       Facts of the Case:

       (a)The appellant herein is the complainant. The respondent issued a blank cheque to complainant without specifying the amount and date. Sub-sequently, the complainant filled up the date and amount portion and presented it. The said cheque was dishonoured for insufficient funds. The trial court, after considering the material on record, dismissed the complaint. Aggrieved by the said order, the complainant preferred the present appeal.

       (b)The court held that in order to attract Section 138, the cheque must be drawn for a certain amount and if a person delivers a cheque without putting actual amount payable, the same cannot come under either a bill of exchange or a cheque. Moreover, the complainant has failed to prove the factum of consent of drawer to fill up the date and amount portion. In absence of consent, the complainant’s action amounts material alteration of cheque. The appeal is dismissed.

Judgment

Ch. S.R.K. Prasad, J.—This criminal appeal is directed against the Judgment in C.C. No. 858 of 1997 rendered by the XV Metropolitan Magistrate, Hyderabad, in acquitting the accused for the offence under Section 138 read with Sections 141 and 142 of Negotiable Instruments Act, 1881 (for short the ‘Act’).

2. The facts that arise for consideration can be briefly stated as follows: The accused issued a blank cheque without mentioning the date and the amount to the appellant herein and sent it along with a letter dated 7.8.1997 stating that it could be presented after one month for payment, if he failed and to pay the amount prior to 7.9.1997. He also requested fifteen days time on 22.8.1997. Thereafter, the cheque was presented after filling up the blanks found at the amount portion and the date and it was presented through ICICI Banking Corporation after putting the amount as Rs. 11,19,206/- and date as 22.9.1997. As can be seen from Ex.P-8, it was dishonoured. Thereupon, Ex.P-10 notice was issued on 3.10.1997. The accused received the said notice on 7.10.1997. Ex. P-12 is the postal acknowledgment. The appellant invoked the provisions of Section 138 of the Act by presenting the complaint for dishonouring of cheque and it was taken on file. The accused pleaded not guilty. Thereupon, the trial was conducted. The appellant alone was examined as P. W. l and the dishonoured cheque was Ex.P- 7. Exhibit P-8 is the cheque return memo dated 25.9.1997. Ex. P-9 is the cheque return intimation dated 26.9.1997. Ex.P-10 is the office copy of the notice. Exhibit P-l is the certificate of incorporation. Ex.P-2 is the certificate extract of the minutes of Board of Directors dated 5.11.1997. Exhibits P-3 and P-5 are the delivery challan invoices. Ex.P-4 is the copy of consignment note. The learned Metropolitan Magistrate recorded a finding of not guilty and acquitted the accused. Thereupon, the appellant preferred this criminal appeal.

3. This appeal is presented against the acquittal Order. This court can interfere only when it is shown that the Judgment is perverse and there is no proper appraisal of the evidence, which led to miscarriage of justice. The powers vested in the Appellate court have been adumbrated under Section 386 Cr.P.C. It is to be seen whether there is any perversity in the Judgment of the lower court.

4. The contention of the learned counsel for the appellant is that the blank cheque was is- sued for legally enforceable debt. It is necessary to have a look at section 138 of the Act, which reads as follows;

“138.Dishonour of cheque for insufficiency etc. of funds in the account:—Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to twice the amount of the cheque, or with both :

Provided that nothing contained in this section shall apply unless—

(a)the cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier;

(b)the payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice in writing, to the drawer of the cheque, within fifteen days of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and

(c)the drawer of such cheque fails to make the payment o




















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