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IN THE HIGH COURT OF JUDICATURE AT MADRAS
G.K.ILANTHIRAIYAN
P.R. Perumal – Appellant
Versus
Aarthi Agencies – Respondent
ORDER :
G.K.ILANTHIRAIYAN, J.
Crl.O.P.No.31884 of 2022 has been filed to quash the proceedings in S.T.C. No.174 of 2022 on the file of the Judicial Magistrate (Magisterial Level), Fast Track Court, Tiruchengode and Crl.O.P.No.7632 of 2023 has been filed to quash the final report in C.C.No.1475 of 2023 on the file of the XIV Metropolitan Magistrate, Egmore, Chennai.
2. The petition in Crl.O.P.No.31884 of 2022 has been filed by the accused in the complaint lodged by the respondent for the offence punishable under Section 138 of the Negotiable Instruments Act. The case of the respondent is that his wife is the proprietrix of the concern and has been acquainted with the petitioner for the past fifteen years. While being so, on 23.04.2022, the respondent lent a sum of Rs.25 Lakhs in cash to the petitioner. At the time of borrowal of the said loan, the petitioner handed over a unfilled signed cheque. Thereafter, on instructions of the petitioner, the cheque was filled up and presented for collection. However, the same was returned dishonoured with the endorsement “Payment Stopped by the Drawer”. After causing a statutory notice, the respondent filed a complaint and the same has been taken c
The court's decision emphasized the strict conditions for prosecuting under Section 138 of the Negotiable Instruments Act, 1881, based on the definition of 'payee' and 'holder in due course'.
Section 138 NI Act proceedings cannot be quashed at a pre-trial stage when statutory requirements are met, as the question of legally enforceable debt must be examined only at trial under the Section....
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.
Presumption under Sections 118/139 of NI Act rebuttable by preponderance of probabilities via cross-examination and circumstances showing cheques for security, not debt; accused need not testify; onu....
A drawer of a cheque may incur liability under Section 138 of the Negotiable Instruments Act unless they can sufficiently rebut the statutory presumptions of consideration and debt.
A cheque issued as security does not negate potential liability under S.138 of the Negotiable Instrument Act if essential legal conditions are met.
Proceedings under Section 138 of the Negotiable Instruments Act cannot be sustained when the underlying debt is based on an arbitration award that has been set aside and there is clear evidence indic....
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