Judges : PAREED PILLAY
Bhageerathy - Appellant
Versus
Beena - Respondent
Case No : Crl.M.C. 473 of 1992
Decided On : 06/23/1992
Advocates Appeared :
T.M. Chandran For Petitioner S. Easwara Iyer, E. Subramani & Public Prosecutor (K. Usha) For Respondents
S.138 of the Negotiable Instruments Act - Cheque Dishonor - The court held that the endorsement 'payment stopped by drawer' does not attract S.138 of the Act as it does not fall under the specified eventualities for punishment under the section.
Fact of the Case:
The petitioner was accused of an offence under S.138 of the Negotiable Instruments Act for a cheque returned with the endorsement 'payment stopped by drawer'. The petitioner argued that this endorsement did not attract S.138 as it did not fall under the specified eventualities for punishment.
Finding of the Court:
The court found that the complaint did not disclose the ingredients under S.138, and therefore, no offence under the section was made out. The complaint was quashed, and the Criminal M.C. was allowed.
Issues: The main issue was whether the endorsement 'payment stopped by drawer' on the returned cheque attracted S.138 of the Act.
Ratio Decidendi: The court interpreted S.138 of the Act and held that the specified eventualities for punishment under the section were not met by the endorsement 'payment stopped by drawer'.
Final Decision: The complaint was quashed, and the Criminal M.C. was allowed.
Petitioner is the accused in S.T.56 of 1991 of the Court of the Additional Judicial Magistrate of the First Class, Palakkad. First respondent filed the complaint alleging offence under S.138 of the Negotiable Instruments Act, for short, 'the Act'. Main contention of the petitioner is that S.138 of the Act is not attracted as the cheque was returned unpaid with the bank's endorsement "payment stopped by drawer". It is argued that return of the cheque with the said endorsement would not come under the purview of S.138 and hence no offence has been made out against the petitioner, especially when- there is no allegation in the complaint that the endorsement was made by the bank as there was no sufficient money in the bank.
2. S.138 of the Act provides for punishment only in case cheque was returned unpaid due to
(i) insufficiency of the amount in the account of the drawer of the cheque to honour the cheque;
and
(ii) the amount covered by the cheque exceeded the arrangement to be paid to the account; and
(iii) not on any other ground.
3. In the complaint it is stated theft he cheque was returned with the endorsement "payment stopped by the drawer". As the cheque was returned with the said endorsement and as there is no averment in the petition that the Bank dishonoured the cheque for want of adequate fund in the account of the drawer it is not possible to hold that S.138 of the Act is attracted. The section provides for two eventualities only and no other. As the ingredients under S.138 are not disclosed in the complaint no offence under the said Section is made out.
In that view of the matter the complaint is liable to be quashed. The complaint is quashed. The Criminal M.C. stands allowed.
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