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IN THE HIGH COURT OF DELHI AT NEW DELHI
AMIT SHARMA
MR. Manoj Nagar – Appellant
Versus
Coim India Pvt. Ltd. – Respondent
| Table of Content |
|---|
| 1. petition for quashing of complaint. (Para 1 , 2 , 3) |
| 2. allegations of outstanding payments and cheque issued as security. (Para 4 , 5 , 6 , 7) |
| 3. details of payment acceptance and dishonor notice. (Para 8 , 11 , 13) |
| 4. assessment of legal liability based on cheque presentation. (Para 9 , 10) |
| 5. judicial scrutiny on consent pertaining to cheque issuance. (Para 12 , 14 , 15) |
| 6. defenses related to cheque being used as security. (Para 16 , 17 , 18) |
| 7. final dismissal of petition and legal proceedings. (Para 19 , 20 , 21 , 22 , 23) |
JUDGMENT :
AMIT SHARMA, J.
1. The present petition under Section 482 of the Code of Criminal Procedure, 1973, (for short, ‘CrPC’) has been filed seeking the following prayers: -
“In light of the foregoing facts, it is humbly prayed that this Hon’ble Court may be pleased to:
a) Quash and set aside the complaint bearing CC No. 9656/2019 pending before the Ld. Metropolitan Magistrate, Tis Hazari, New Delhi; and/or
b) Quash and set aside the Final Order dated 07.01.2020 passed by the Ld. Metropolitan Magistrate Tis Hazari Court Complex, New Delhi in complaint bearing CC No. 9656/2019
c) Pass other and such orders as this Hon’ble Court deems fit in the i
A cheque issued as security can incur liability under Section 138 if a legally enforceable debt exists at the time of its presentation.
The crucial consideration is whether at the time of presentation of the cheque for encashment, there was a legally enforceable debt or liability due to the complainant from the accused. The nomenclat....
A cheque issued as security does not create criminal liability under Section 138 unless there is a legally enforceable debt at the time of its issuance.
The issuance of a cheque signifies a legally enforceable debt under Section 138 of the N.I. Act, and the burden to prove otherwise lies with the accused, not the complainant.
A legally enforceable debt must exist at the time of cheque presentation for liability under Section 138 of the N.I. Act to arise.
(1) Cheque issued as security pursuant to a financial transaction cannot be considered as a worthless piece of paper under every circumstance.(2) When a cheque is issued and is treated as ‘security’ ....
(1) Dishonour of cheque – A post-dated cheque issued after debt has been incurred would be covered by definition of ‘debt’ – However, if sum payable depends on a contingent event, then it takes colou....
Point of law: Question whether a post-dated cheque is for “discharge of debt or liability” depends on the nature of the transaction.
The main legal point established is that the issuance of blank cheques as security for a loan attracts penal provisions of Section 138 NI Act, and the burden of proving the absence of a legally enfor....
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