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2016 Supreme(P&H) 3139

IN THE HIGH COURT OF PUNJAB AND HARYANA
KULDIP SINGH, J.
Anu Bhatia – Appellant
Vs.
Dharmender Raj – Respondent
CRM-A No.891-MA of 2014
Decided On : 19-05-2016

Important Points

The importance of proving the loan transaction and the implications of misuse of a blank cheque in cases under Section 138 of the Negotiable Instruments Act.

Subject

Criminal Law - Cheque Dishonor

Act Referred

CRIMINAL PROCEDURE CODE : S.378(4)
NEGOTIABLE INSTRUMENTS ACT : S.138

Headnote

Section 138 - Negotiable Instruments Act - Dismissal of complaint for dishonor of cheque due to failure to prove loan transaction and finding of misuse of blank cheque

Fact of the Case:

The complainant had advanced a loan to the accused and filed a complaint under Section 138 of the Negotiable Instruments Act when the cheque issued in discharge of the loan was dishonored due to 'account closed'. The lower court dismissed the complaint on the grounds of failure to prove the loan transaction and finding of misuse of blank cheque.

Finding of the Court:

The court found that the complainant failed to prove the loan transaction and that it was a case of misuse of blank cheque, leading to the dismissal of the application for grant of leave to appeal.

Issues: Failure to prove loan transaction, misuse of blank cheque

Ratio Decidendi: The court's decision was influenced by the failure of the complainant to prove the loan transaction and the finding of misuse of the blank cheque, leading to the dismissal of the application for grant of leave to appeal.

Final Decision: The application for grant of leave to appeal was dismissed.

Advocates Appeared:
For the Applicant : Rohit Rana

JUDGMENT :

Kuldip Singh J.

The present application filed under Section 378 (4) Cr.P.C. has been filed against the judgment of acquittal dated 18.04.2015 passed by learned Judicial Magistrate 1st Class, Faridabad, vide which the complaint filed by the present applicant under Section 138 of the Negotiable Instruments Act, 1881 was dismissed.

2. Brief facts of the case are that complainant-applicant Anu Bhatia had advanced friendly loan of Rs. 4,50,000/- to the accused-respondent. In discharge of which, accused-respondent had issued a cheque bearing No. 385931, dated 02.03.2013 for Rs. 4,50,000/-. When the said cheque was presented to the drawee bank, the same was returned with the remarks 'account closed'.

3. I have heard learned counsel for the applicant and have also carefully gone through the case file.

4. A perusal of the judgment of lower court shows that the lower court dismissed the complaint, inter alia, on the ground that the complainant has failed to prove the advancement of loan of Rs. 4,50,000/-. No receipt or document was executed for advancing loan. The advancement of the loan of Rs. 4,50,000/- by a housewife to the accused-respondent was disbelieved by the lower court. Further, it was noticed that the cheque was filled in with two different pens, indicating that it was misuse of blank cheque. Therefore, it was held that it was the case of misuse of blank cheque.

5. I am of the view that since the complainant-applicant failed to prove the loan transaction and the lower court has found that it is a case of misuse of blank cheque, therefore, there is no illegality or perversity in the impugned judgment.

6. Hence, the present application for grant of leave to appeal is dismissed.



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