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2016 Supreme(Del) 983

IN THE HIGH COURT OF DELHI AT NEW DELHI
P.S.TEJI, J.
JOYMON - PETITIONER
versus
LUXOR WRITING INSTRUMENTS P.LTD. – RESPONDENT
CRL.M.C. No.2160/2013
Decided On : 23-02-2016

Advocates Appeared:
Mr. Wills Mathews, Mr. Shashank Menon, Advocates
Mr. Chand Zafar, Advocate

Section 20 of the Negotiable Instruments Act implies that if a blank cheque is signed and handed over, it gives the holder implied authority to fill it.

Headnote:

Section 482 - Criminal Procedure Code - 20 of Negotiable Instruments Act - Summary of Acts and Sections: Section 20 of the Negotiable Instruments Act, 1881 was discussed by the court, emphasizing that if a blank cheque is signed and handed over, it implies that the person signing it has given an implied authority to the holder to fill it.

Fact of the Case:

The petitioner issued blank cheques to the respondent as security, which were later filled in with an amount and date by the respondent. The respondent then claimed the amount from the petitioner under Section 138 of the Negotiable Instruments Act. The petitioner sought to refer the dishonoured cheque for expert opinion, but the application was dismissed by the lower courts.

Finding of the Court:

The court found that the petitioner's conduct showed delaying tactics, and there was no infirmity in the lower court's decision to dismiss the revision petition.

Issues: The issues revolved around the authority to fill in blank cheques, the admissibility of expert opinion on the cheques, and the delay tactics employed by the petitioner.

Ratio Decidendi: The court emphasized that Section 20 of the Negotiable Instruments Act implies that if a blank cheque is signed and handed over, it gives the holder implied authority to fill it.

Final Decision: The court dismissed the petition, upholding the lower court's decision to dismiss the revision petition.

ORDER :

P.S.TEJI, J

1. The present petition has been preferred under Section 482 of the Code of Criminal Procedure, praying for summoning the records and proceedings of the Complaint Case No.279/1/12 titled as M/s Luxor Writing Instruments Pvt. Ltd. v. Joymon; setting aside the order dated th February, 2013 passed by the learned Additional Session Judge(ASJ) -01, Patiala House Courts, New Delhi whereby the application of the petitioner under Section 243(2) of the Code of Criminal Procedure, for sending the cheques in question for expert opinion, was dismissed by learned Special Metropolitan Magistrate, Patiala House, New Delhi vide order dated 17th October, 2012 and, inter alia seeking issuance of direction to the Trial Court to take on record the application for referring the dishonoured cheque for CFSL report/hand writing expert.

2. The facts giving rise to the present petition are within the narrow compass and to the extent necessary, narrated hereinafter.

3. The petitioner namely Mr.Joymon was the proprietor of M/s Gokul Agencies having his office at Thiruvananthapuram, Kerala while the respondent-M/s Luxor Writing Instruments Private Limited was having its registered office at New Delhi. The petitioner was having business transaction since the year 2000 with the respondent. As per the petitioner, on 8th April, 2000, he had issued a Demand Draft for the sum of Rs.50,000/-as first advance payment and tendered five blank cheques bearing signatures and the name of the respondent-company, to the respondent as security. It is contended that the cheques were issued without date and time having written on them.

4. Learned counsel for the petitioner has submitted that on 13th July, 2001, the dealings between the petitioner and respondent were discontinued for the reason that the same were not viable as the movement of the product was slow. A meeting in this regard was organized by the All Kerala Distributors Association. As per the petitioner, on 30th November, 2001, it was also agreed between the parties that the petitioner would hand over to the respondent all the existing stock on or before 1st December, 2001 against receipt and the existing market outstanding as on date was to the tune of Rs.1,72,139/-which was to be collected jointly. As per the petitioner, he was maintaining a statement of accounts of the transactions which took place with the respondent and as per that statement, the closing balance on conclusion of business dealings was to the tune of Rs.90,202.33 for the period commencing from 8th April, 2000 to 15th December, 2001.

5. Learned counsel for the petitioner next contended that on December, 2001, the petitioner returned the stock of goods by Cochin Freight Carriers Pvt. Ltd. and got an endorsement of the respondent on the statement of account. It is alleged by learned counsel for the petitioner that the respondent wrote an exorbitant figure of Rs.4,81,506.00 on one of the cheques issued on 8th April, 2000 and put a date of 16th October, 2002 on it and presented the same for encashment which was dishonoured for the reason of insufficient funds. After the dishonour of the said cheque, on 7th November, 2002 the respondent issued a legal notice to the petitioner under Section 138 of the Negotiable Instruments Act, claiming a sum of Rs.4,81,506/-. However, as per the petitioner, he was maintaining a statement of accounts of the transactions which took place with the respondent and as per this statement, the closing balance on conclusion of business dealings was to the tune of Rs.90,202.33 for the period commencing from 8th April, 2000 to 15th December, 2001. On 13th December, 2002, the petitioner replied to the legal notice denying the liability of the value of the dishonoured cheque. The petitioner also requested the respondent to take back the damaged stock of goods amounting to Rs.1,75,000/-and adjust their dues of Rs.90,202.33 and requested thereby to repay the balance amount of Rs.85,000/-back to the petitione

















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