IN THE HIGH COURT OF GUJARAT AT AHMEDABAD
J.C.DOSHI
Indcon Projects & Equipment Ltd. Thro' Aruni Misra – Appellant
Versus
Oswal Infrastructure Ltd. – Respondent
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 petitioners have prayed to quash and set aside the order of issuance of process dated 9/8/16 passed below Exh.1 in Criminal Case No. 790 of 2016 pending before the Id. Addl. Chief Metropolitan Magistrate (Negotiable Instruments) Court No. 36, Ahmedabad and further to quash and set aside the Criminal Case No. 790 of 2016 pending before the Id. Addl. Chief Metropolitan Magistrate (Negotiable Instruments) Court No. 36, Ahmedabad.
2. Brief facts of the case are as under:-
2.1 The parties to the present petition are referred to as per their original status i.e. petitioners as accused no. 1 and 2 respectively while respondent no. 1 as complainant.
2.2 As per the case of complainant, it had issued a Letter of Intent bearing no. OIL-044/LoI/14- 15/PUR/CIL-025 showing its intention to purchase Export Oil Skid Packages as per the specification mentioned in the Letter of Intent. The said letter of intent also contained various terms and conditions subject to which goods were intended to be ordered.
2.3 The complainant has also relied upon va
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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.
The issuance of a cheque implies liability under the NI Act, and courts should not quash complaints based on disputed facts without trial.
Dishonour of cheque – Consequences of scuttling criminal process at a pre-trial stage can be grave and irreparable.
(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 ....
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....
There is a presumption under Section 139 of the N.I.Act that there exists a legally enforceable debt or liability.
The court emphasized that the determination of whether a cheque was issued for a legally enforceable debt or as security is a factual issue for trial.
Cheques issued as security can still be subject to Section 138 if a legally enforceable debt exists at the time of issuance.
The court emphasized that the determination of whether cheques were issued for a legally enforceable debt or as security is a matter for trial, not for quashing proceedings.
The court emphasized that the determination of whether cheques were issued for a legally enforceable debt or as security is a matter for trial, not for quashing proceedings.
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