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1993 Supreme(Ori) 144

L.RATH
SRI SIBA SHANKAR SAHU – Appellant
Versus
UTKAL ASBESTOS LTD. – Respondent


Advocates Appeared:
S.P. Misra, for the Appellant; Ashok Mohanty, for the Respondent

JUDGMENT :

L. Rath, J. - A question of considerable importance as to the relative scope of Section 138 of the Negotiable Instruments Act, 1891 (hereinafter referred to as 'the Act') for launching prosecutions when cheques are dishonoured falls for decision in this case. A preamble of the facts is necessary to introduce the question. The petitioner is a proprietorship firm having business of supply of building materials and for the purpose, uses to get A. C. Sheets of different brands including Konark brand manufactured by the opposite party-company. The agreement for payment of the cost of A. C. Sheets was both cash and credit. There were some oustanding dues against the petitioner against 0. A. No. 367 of the opposite party and goods invoice No. DAD 535 dated 11-11-1892. It is the petitioner's case that against the amounts outstanding cash payment of Rs. 41,000/- was made and after adjustment of a sum of Rs. 22,000/- in the accounts, a sum of Rs. 19,000/- was outstanding for payment for which he issued a cheque in favour of the opposite party bearing No. 827512, without entering any date thereupon. The under-standing between the parties was that the amount outstanding would be inco






























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