IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
SANDEEP N. BHATT, J.
Gauriben Bhimjibhai Sorathiya - Applicant
Versus
State Of Gujarat & Anr. – Respondents
R/Criminal MISC. Application No. 7806 Of 2018 with R/Criminal MISC. Application No. 7834 of 2018
Decided On : 03-08-2023
Criminal Procedure Code, 1973 – Section 482 – Negotiable Instruments Act, 1881 – Section 138, 139 – Quashing of criminal proceeding – Additionally, it is crucial to note that the signatory of cheque is affiliated with individuals other than the present applicant – Taking into account totality of facts and circumstances of present case, and placing emphasis on pivotal point that absence of statutory notice served to present applicant renders any complaint inadmissible under Section 138 of Negotiable Instruments Act, 1881, it becomes evident that there is no fruitful purpose in continuing with ongoing proceedings stemming from respective complaints filed under Section 138 in their respective petitions – Applications allowed.
JUDGMENT :
1. Since the issues involved in the present applications are identical in nature, Criminal Misc. Application No.7834 of 2018 is considered as leading matter.
2. The present application is filed for seeking following main reliefs:-
(B) YOUR LORDSHIPS may be pleased to stay the further proceedings of impugned complaint being Special Criminal Case No.33686/2017 pending in the Court of Ld. Additional Senior Civil Judge & Chief Judicial Magistrate, Surat, pending the admission, hearing and final disposal of this. petition, in the interest of justice;”
3. Brief fact in Criminal Misc. Application No.7834 of 2018 as per the case of the applicant in this application are as such that the applicant is a lady aged 58 years and doing household work. The case of the respondent no.2- complainant is that the complainant is a proprietor of Sahjanand Accounting. It is alleged that the Accused Kadam Valjibhai Baldaniya is the owner of Kadam Construction and he is engaged in the business of construction of residential premises/houses. It is alleged in the complaint that the applicant herein is having House No.173, 3-B which was mortgaged and the gold ornaments of applicant herein were also mortgaged. It is alleged that as the applicant as well as accused no.1 were in need of money, they approached the complainant. It is alleged that the applicant and accused no.1 had taken loan of Rs. 90 Lakhs for business purpose/ personal reasons. It is alleged that the complainant had given this amount of Rs. 90 Lakhs in cash. It is alleged that upon repeated requests and reminders for repayment, finally, the accused no.1 issued two cheques bearing no. 030032 and 030033 both dated 15.6.2017 drawn on Central Bank of India, Gandhidham Branch, Kutch for a sum Rs. 22,50,000/- each, totaling to Rs. 45,00,000/-. It is alleged that upon presentation of the cheques, the same came to be dishonoured with endorsement "ALTERATION REQUIRE DRAWER AUTHENTICATION" on 5.7.2017. It is alleged that the complainant thereafter issued statutory notice u/s. 138 of N.I. Act to the accused no.1 on 10.7.2017 and thereafter filed the impugned complaint. It is the case of the applicant in this applicant that even taking the case of the complainant as it is without admitting the same, it is clear that the applicant has not issued any cheque to the complainant. The applicant has not signed any cheque or given the same to the complainant towards any legally enforceable debt. The applicant is nowhere concerned with the partnership firm/construction company of accused no.1. In fact, the applicant has not taken/ borrowed any amount from the complainant. The entire story qua the applicant is false and fabricated. In pursuance to the filing of the complaint, the Ld. 3rd Additional Senior Civil Judge & Additional Chief Judicial Magistrate, Surat has issued summons in the complaint. It is pertinent to note that though the applicant is not issued any notice u/s. 138 of N.I. Act. In spite of the same, the complainant has joined the applicant as accused in the criminal complaint filed u/s. 138 of N.I. Act. Without appreciating the above material aspect, the Ld. Magistrate has issued summons to the applicant also. The impugned order of summons and the complaint is thus clear abuse of process of law and court. The Ld. Magistrate has passed the impugned order without application of mind. Hence, this application is preferred.
4. Heard learned advocate Mr. Gajendra P. Baghel representing the applicant and Mr. Dhawan Jayswal, learned Additional Public Prosecutor (APP) representing the respondent No.1 – State.
5. Though served with the service of notice, responde
State of Haryana V/s Bhajan Lal
A cheque issued as security does not negate potential liability under S.138 of the Negotiable Instrument Act if essential legal conditions are met.
A person who is not a signatory to the cheque cannot be prosecuted under Section 138 of the Negotiable Instruments Act, 1881, for the offence of dishonour of cheque for insufficiency of funds.
The court's decision emphasized the strict conditions for prosecuting under Section 138 of the Negotiable Instruments Act, 1881, based on the definition of 'payee' and 'holder in due course'.
A cheque dishonoured for reasons such as 'referred to the drawer' is covered under Section 138 of the N.I. Act, but a complaint must be filed after proper service of notice and cannot be filed in the....
A PRESUMPTION THAT A CHEQUE PERTAINS TO A LEGALLY ENFORCEABLE DEBT OR LIABILITY ARISES WHEN THE SIGNATURE ON THE CHEQUE IS ADMITTED, BUT THIS PRESUMPTION IS REBUTTABLE AND THE BURDEN OF PROOF LIES ON....
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