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IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
J.C.DOSHI
Highlife Industries Thro.' Shankarbhai Babaldas Patel – Appellant
Versus
State Of Gujarat – Respondent
| Table of Content |
|---|
| 1. petition under article 226 for quashing proceedings (Para 1 , 2) |
| 2. arguments regarding non-existence of liability under ni act (Para 3 , 4) |
| 3. court's considerations on quashing procedures (Para 5 , 6 , 8) |
| 4. legal presumptions under ni act (Para 9 , 10 , 11) |
| 5. judicial caution on quashing complaints (Para 12 , 13 , 14 , 15 , 16 , 17) |
| 6. conclusion on dismissal of the petition (Para 18 , 19) |
ORDER :
J. C. DOSHI, J.
1. By way of this petition under Article 226 of the Constitution of India r/w section 482 of the Code of Criminal Procedure, 1973, the petitioner has prayed to quash and set aside the proceedings of Criminal Case No.87 of 2015 pending before the Id. Metropolitan Magistrate Court, Ahmedabad.
2. Brief facts of the case are as under:-
2.1 As per case of the complainant, applicant is carrying out activity of manufacturing High Life brand speed precision pillar machine radial drill machine and magnetic drill and machine and complainant is dealer of Bosch Ltd. and distributor of drill machine. In the year 2005-2006, the applicant had purchased two machines and transaction was completed and thereafter another set of 10 machines were ordered on 10.09.2014 for three ma
The issuance of a cheque implies liability under the NI Act, and courts should not quash complaints based on disputed facts without trial.
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.
(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 ....
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....
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....
Disputed questions of fact regarding the enforceability of a cheque under Section 138 of the NI Act cannot be adjudicated at the pre-trial stage; legal presumptions apply until evidence is presented.
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.
(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....
Even a blank cheque leaf, voluntarily signed and handed over by accused, which is towards some payment, would attract presumption under Section 139 of Negotiable Instruments Act.
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