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IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
RAKESH KAINTHLA
H.P. State Co-operative Bank Ltd. – Appellant
Versus
Harish Chauhan – Respondent
JUDGMENT :
Rakesh Kainthla, J.
The present appeal is directed against the judgment dated 01.12.2023 passed by learned Additional Chief Judicial Magistrate, Court No.2, Shimla, H.P. (learned Trial Court) vide which the complaint filed by the appellant/complainant before the learned Trial Court was dismissed, and the respondent/accused before the learned Trial Court was acquitted. (Parties shall hereinafter be referred to in the same manner as they were arrayed before the learned Trial Court for convenience.)
2. Briefly stated, the facts giving rise to the present appeal are that the complainant filed a complaint before the learned Trial Court against the accused for the commission of an offence punishable under Section 138 of the Negotiable Instruments Act, 1988 (NI Act). It was asserted that the complainant is a financial institution engaged in banking activities. The accused sought a personal loan of Rs. 1,00,000/-, which was sanctioned to him on 17.05.2017. The loan was to be repaid in a monthly instalment of Rs. 1800/- per month in eight years. The accused failed to repay the amount as per the terms and conditions agreed between the parties. An amount of Rs. 2,13,179/- became due
The court clarified that a complaint under Section 138 of the Negotiable Instruments Act is maintainable against individuals without needing to name the proprietorship, as the individual is liable fo....
A complainant must demonstrate ownership as the payee or holder in due course to maintain a complaint under Section 138 of the NI Act; failure to establish this results in dismissal.
A cheque issued by a Firm does not implicate the proprietor unless the Firm is named in the complaint, requiring clear averments regarding sole proprietorship for liability under Section 138.
A cheque issued by a Firm does not implicate the proprietor unless the Firm is named as an accused; absence of sole proprietorship averment in the complaint is fatal.
Point of Law : Dishonoured of Cheque - Quash of Complaint - Offences committed by companies - Cheque has not been signed by petitioner and cheque has been issued with regard to business concern that ....
The main legal point established in the judgment is that the liability of a company and its director under Section 138 of the Negotiable Instruments Act, 1881 is contingent on the relationship betwee....
The proprietor of a sole proprietorship holding liability for a dishonored cheque under Section 138 NI Act does not require the business entity to be arrayed as an accused.
The main legal point established in the judgment is that the proprietor or partner of a firm can maintain a complaint under Section 138 of the N.I. Act in his own name as a holder in due course of th....
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