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G. JAYACHANDRAN
Challani Rank Jewellery – Appellant
Versus
Ashok Kumar Jain Proprietor of M/s Mangalkalash Jewellers – Respondent
ORDER :
G. Jayachandran, J.
The Criminal Original Petition to quash the criminal complaint filed for offence under Section 138 of the Negotiable Instruments Act, 1881(in short “NI Act”) is on the following two specific grounds.
(1) Single complaint in respect of dishonour of 36 cheques bearing different dates is not maintainable in view of Section 219 of Cr.P.C.
(2) The account from which the cheques drawn had sufficient fund to honour the cheque but not honoured in view of the account blocked as per order of the Income Tax Department and the Enforcement Directorate. Hence, the facts of the case does not fall under any of two contingencies contemplated under Section 138 of NI Act.
2. The crux of the complaint against the petitioners:
Complainant Mr.Ashok Kumar Jain, Proprietor of M/s Mangalkalsh Jewellers carrying on business at 152, Mint Street, First Floor, Sowcarpet, Chennai, is a dealer in silver articles and silver bullions. The first accused M/s Challani Ranka Jewellery, a partnership Firm, dealing with silver articles and silver bullions. The second and third accused are its partners. On 14/08/2020 M/s Chellani Ranka Jewellery purchased silver articles and silver bullions worth Rs
A single complaint for dishonour of multiple cheques is maintainable under Section 138 of the NI Act if they arise from a single transaction, and account blockage does not exempt liability.
A single complaint for the dishonor of multiple cheques issued in one transaction is maintainable under the NI Act, despite the provisions of the CrPC.
A single complaint for dishonour of multiple cheques is maintainable if a consolidated notice of demand is served, as they constitute one offence upon failure to pay.
Joint prosecution for multiple cheque dishonours is permissible if they arise from a single transaction under the Negotiable Instruments Act and may be tried together as per the Code of Criminal Proc....
A person who is not a signatory to the cheque cannot be prosecuted under Section 138 of the Negotiable Instruments Act, 1881, for the offence of dishonour of cheque for insufficiency of funds.
(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....
Presumption against the drawer of the cheque, dishonour of cheques due to closure of the account, and the petitioner's failure to rebut the presumption.
The dishonour of cheques and the existence of a legally enforceable debt must be proved, and the presumption under section 139 of the NI Act can only be rebutted with strong evidence.
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