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IN THE HIGH COURT OF JUDICATURE AT MADRAS
G.K.ILANTHIRAIYAN, J
Silver Wood (Interior Decorators) – Appellant
Versus
Kameo Proprietrix – Respondent
| Table of Content |
|---|
| 1. conviction under section 138 of ni act details (Para 1 , 2 , 3) |
| 2. arguments regarding cheque presentation validity (Para 4 , 5) |
| 3. legal questions on cheque validity period (Para 6 , 7) |
| 4. analysis of cheque as security deposit (Para 8 , 9) |
| 5. conclusion and acquittal of petitioner (Para 10 , 11) |
ORDER :
1. This criminal revision has been preferred against the judgment dated 01.11.2022 passed in Crl.A.No.200 of 2019 on the file of the III Additional Sessions Judge, Chennai, thereby confirmed the order dated 25.04.2019 passed in CC.No.6189 of 2012 on the file of the Fast Track Court No.1, Egmore, Allikulam, Chennai thereby convicted the petitioner for the offence punishable under Section 138 of NI Act.
2. The petitioner is the accused in the complaint lodged by the respondent for the offence punishable under Section 138 of NI Act alleging that the petitioner was entrusted for doing interior decoration at the office of M/s. Sriram Capital at Chennai. In this regard, the petitioner had issued a cheque in favour of the respondent for a sum of Rs.3,00,000/- along with an undertaking letter as security deposit. It was presented for collection, but it was returned dishono
A cheque issued merely as a security deposit, without constituting a legally enforceable debt, cannot support a conviction under Section 138 of the Negotiable Instruments Act.
The court clarified that for criminal liability under Section 138, a cheque must be presented to the drawee bank within six months from its date.
A cheque must be presented within its validity period for an offence under Section 138 of the NI Act to apply, and failure to do so renders the complaint inadmissible.
Cheque must be presented at the paying bank within six months; delay renders it stale and invalidates prosecution.
A cheque must be presented within six months for a valid complaint under Section 138 of the N.I. Act; statutory presumption applies if no reply to the notice is given.
Dishonour of cheque – When there are specific allegations in complaint disclosing ingredient of offence, quashing of proceeding by exercising jurisdiction under Section 482 Cr.P.C. by High Court is i....
The crucial consideration is whether at the time of presentation of the cheque for encashment, there was a legally enforceable debt or liability due to the complainant from the accused. The nomenclat....
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