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2015 Supreme(Mad) 688

HIGH COURT OF JUDICATURE AT MADRAS
R. KARUPPIAH, J.
R. Kamal Jain – Appellant
Versus
Axis Bank Limited (Erswhile UTI Bank Ltd.,) Chittoor Branch, rep. by its Assistant Vice President A.V. Ajay Babu – Respondent
Crl. O.P. No. 5507 of 2010 & M.P. No. 1 of 2010
Decided On : 05-02-2015

Advocates:
Advocate Appeared:
For the Petitioner:P. Kannadasan, Advocate.
For the Respondent:Mothilal, Advocate.

Headnote:

Negotiable Instrument Act - Section 138 - Indian Penal Code - Section 420 - Quash of private complaint - Payment stopped by drawer – Dishonor of cheque - Respondent herein filed a private complaint under Section 138 of Negotiable Instrument Act and Magistrate has taken on file - In above said complaint it is stated that respondent herein has sanctioned a limit of initially which was subsequently enhanced under facility of factoring of domestic receivable from Teletech Ltd which was guaranteed by personal guarantee of petitioner - Petitioner also executed necessary documents including master letter undertaking for PSBC in favor of respondent acknowledgment of terms and conditions of sanction letter of acknowledgment of debt for consideration promising to repay same on demand with interest - Petitioner defaulted to pay balance amount of inspite of demand and notices by complainant - It is also stated in complaint that this petitioner had issued a cheque bearing drawn on ICICI Bank Ltd Vellore in favor of complainant Bank being part payment of amount payable by him - It is also averred in complaint that respondent herein sent above said cheque for collection to their Bank and they had presented cheque to ICICI Bank Ltd Vellore for payment - But above said cheque was returned to complainant itself with an endorsement that cheque was returned for reasons payment stopped by drawer – Therefore respondent herein issued a registered notice under Section 138 of Negotiable Instrument Act calling upon petitioner for payment of said amount of dishonored cheque which was received by respondent as per Acknowledgment Card – Held, Drawer of such cheque fails to make payment of said amount of money to payee or as case may be to holder in due course of cheque within fifteen days of receipt of said notice - In instant case main contention of petitioner is that even petitioner handed over four blank cheques bearing of ICICI Bank Ltd and petitioner herein sent a letter to respondent itself wherein clearly stated as above said cheques have been issued as blank cheques - Further in said letter petitioner requested to return all four blank cheques - Since petitioner already intimated to ICICI Bank for stop payment in case of cheques are to be filled up unauthorized and presented out of time - From above said averments in letter revealed that there are four cheques including cheque relating to present cheque also handed over to respondent itself as blank cheques and petitioner herein specifically requested respondent to return all four blank cheques and also direct respondent not to filled up unauthorized and also not to present cheques for collection - Respondent herein has not sent any reply for above said letter - As already discussed in legal notice issued by respondent shows that respondent has suppressed above said material facts - Legal notice issued by respondent is not valid since respondent herein has not complied with conditions prescribed in provision under Section 138 of the Negotiable Instruments Act as rightly contented by counsel appearing for petitioner - As discussed earlier from above said conduct of respondent itself clearly shows that alleged cheque bearing not issued on alleged date but petitioner handed over four blank cheques including cheque relied on by respondent in present case of ICICI Bank Limited itself as stated in earlier notice – Therefore respondent herein not entitled to any relief as claimed in private complaint filed by respondent on basis of fraudulent document and also want of proper legal notice as rightly pointed out by counsel appearing for petitioner - Order accordingly

Judgment :-

1. The petitioner filed this Criminal Original Petition to quash the private complaint filed by the respondent in C.C.No. 34 of 2009 on the file of the Judicial Magistrate No.IV, Vellore.

2. Heard the learned counsel for the petitioner and respondent and perused the entire materials available on record.

3. Brief facts necessary to decide the petition are as follows:-

The respondent herein filed a private complaint under Section 138 of the Negotiable Instrument Act and the Magistrate has taken on file as C.C.No.34 of 2009. In the above said complaint, it is stated that the respondent herein has sanctioned a limit of Rs.5,00,000/- initially which was subsequently enhanced to Rs.25,00,000/- under the facility of factoring of domestic receivable from Bharathi Teletech Ltd., which was guaranteed by the personal guarantee of the petitioner. The petitioner also executed necessary documents including the master letter dated 13.01.2007 undertaking for PSBC dated 18.01.2007 in favour of the respondent, acknowledgment of terms and conditions of the sanction, letter of acknowledgment of debt dated 02.04.2007 for consideration of Rs.25,00,000/- promising to repay the same on demand with interest. The petitioner defaulted to pay the balance amount of Rs.18,80,104/- as on 31.10.2008 inspite of demand and notices by the complainant on 16.10.2008 and 03.11.2008. It is also stated in the complaint that this petitioner had issued a cheque bearing No. 116143 dated 12.12.2008 drawn on ICICI Bank Ltd., Vellore in favour of the complainant Bank for Rs.16,60,000/- being part payment of the amount payable by him. It is also averred in the complaint that the respondent herein sent the above said cheque for collection to their Bank at Vellore and they had presented the cheque to ICICI Bank Ltd., Vellore for payment on 17.12.2008. But the above said cheque was returned to the complainant on 17.12.2008 itself with an endorsement that the cheque was returned for reasons “payment stopped by drawer”. Therefore, the respondent herein issued a registered notice on 30.12.2008 under Section 138 of the Negotiable Instrument Act calling upon the petitioner for payment of the said amount of Rs.16,60,000/- of the dishonoured cheque which was received by the respondent on 03.01.2009 as per Acknowledgment Card.

According to the respondent, the petitioner had issued the above said cheque knowing fully well that there is no sufficient funds in his account and also instructed his Bank to stop payment of the above cheque, thereby dishonoured the cheque with malafide intention to defraud the respondent and therefore filed the above said private complaint to punish the petitioner under Section 138 of the Negotiable Instrument Act and it is pending before Magistrate Court.

4. The petitioner herein filed this Criminal Original Petition to quash the above said private complaint filed by the respondent herein. The main contention of the petitioner is that the respondent has sent a defective legal notice dated 13.12.2008 since the above said notice issued without mentioning the cheque number, drawn Bank etc., particulars and therefore, the above said notice was not in proper manner, but the trial Court has failed to consider the above said fact. Further the contention of the petitioner is that he already intimated about the stop payment even prior to demand notice of the respondent as early as 17.09.2008 and the respondent made a demand notice on 16.10.2008 demanding him to pay Rs.20,00,000/- with interest, even after the receipt of stop payment intimation. This fact also not considered by the trial Court. Further the respondent herein given two different version in their two notices served to the petitioner. Further, the trial Court has failed to peruse the reply notice sent by the petitioner on 16.01.2009 wherein denied the contentions of the respondent and also pointed out the defective notice sent by the respondent before taken on file by the trial Court. Therefore, t







































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