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2023 Supreme(P&H) 1902

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
VIKRAM AGGARWAL, J.
Amit Kumar - Appellant
Versus
Ishwar Garg – Respondent
CRA-AS No.149 of 2023
Decided On : 20-04-2023

Advocates Appeared:
For the Appellant : Ms. Ambika for Mr. J.K. Goel.
For the Respondent: Mr. Munish Kumar Garg.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Appeal against dismissal of complaint for dishonor of cheque - The trial Court dismissed the complaint on grounds of incorrect cheque number, leading to the conclusion that mandatory provisions were not met - The trial Court acquitted the respondent-accused. (Paras 2, 6, 8)

(B) Compliance with Section 138 - The requirements of Section 138 are mandatory for maintainability of the complaint, including the proper identification of the cheque involved. (Paras 6, 8)

Facts of the case:
The appellant operated a rice mill leased to the respondent, who issued a cheque as part of the lease agreement. The cheque was dishonoured twice, and a legal notice was issued but contained a discrepancy in the cheque number.

Findings of Court:
The trial Court found that the complaint was not maintainable due to incorrect identification of the cheque in the legal notice, thus affirming the acquittal of the respondent-accused.

Issues: Whether the trial Court erred in dismissing the complaint due to the discrepancy in the cheque number and compliance with Section 138 of the Act.

Ratio Decidendi: The court held that the identifying details of the cheque must comply with Section 138's provisions, which were not correctly fulfilled in this instance.

Result: Appeal dismissed.

Table of Content
1. details of the contractual relationship (Para 2)
2. court's dismissal of appeal (Para 3)
3. court's analysis on cheque number validity (Para 4 , 7)
4. appellant's argument on cheque correction (Para 5)
5. respondent's defense on procedure compliance (Para 6)

JUDGMENT :

(Vikram Aggarwal, J.)

The present appeal assails the judgment dated 12.12.2013 vide which the complaint filed by the appellant-complainant under Section 138 of the Negotiable Instruments Act, 1881(for short the Act) was dismissed and the respondent-accused was acquitted.

2. The facts, in brief, are that the appellant-complainant was running a rice mill under the name and style of M/s.S.R.L.Trading company, at Karnal. The same had been leased out to the respondent-accused for one paddy season commencing from 01.05.2009 to 31.03.2010 by way of a lease agreement dated 27.04.2009. Rs.3,00,000/- was to be paid as lease money. In discharge of his legal liability, the respondent-accused issued cheque No.22863 dated 15.02.2009 drawn at State Bank of Patiala, Karnal for a sum of Rs.1,50,000/-.It would be essential to notice here that the number of cheque was subsequently changed in the complaint to 223862. The cheque was dishonoured vide memos dated 15.05.2009 and 29.10.2009. Statutory legal notice dated 11.11.2009 was issued calling upon the respondent-accused to make the payment of the cheque within a period of 15 days. Since the amount was not paid, the complaint was filed. After preliminary evidence, the respondent-accused was summoned. Notice of accusation was served on 12.07.2010. During the trial, the complainant appeared as CW1 and examined three other witnesses apart from himself. All the relevant documents were also tendered into the evidence. Certain documents were produced by the respondent-accused in defence evidence. After examining the matter and hearing both sides, the trial Court dismissed the complaint.

3. Aggrieved by the said decision, the present appeal was preferred.

4. I have heard learned counsel for the parties and I have also perused the record which was duly summoned.

5. Learned counsel for the appellant has submitted that the trial Court erred in dismissing the complaint. It has been submitted that inadvertently, initially in the complaint cheque bearing No.223863 was mentioned which was duly corrected to 223862. It has been submitted that in the other documents and the evidence, inadvertently cheque No.223863 was referred to instead of 223862. Learned counsel has submitted that the cheque which was tendered in evidence was bearing No.223862 and therefore the trial Court erred in not examining the matter from the correct perspective and simply dismissed the complaint on technical grounds.

6. On the other hand learned counsel for the respondent has submitted that there is no illegality in the decision of the trial Court as even in the legal notice which was issued, the cheque number which was mentioned was 223863 and not 223862 and therefore, the requirements of Section 138 of the Act were not complied with. It has been argued that under the circumstances, the trial Court rightly dismissed the complaint and acquitted the respondent-accused. In support of his contentions learned counsel has placed reliance upon the judgment of this Court in the case of Chhabra Fabrics Private Limited Vs. Bhagwan Dass, Proprietor of Dhingra Handicrafts , 2014(4) RCR(Criminal) 814.

7. I have given my thoughtful consideration to the arguments addressed by learned counsel for the parties. No doubt, the cheque which was tendered in evidence that is EX-C1 was cheque No.223862. However, this alone would not be sufficient. In the complaint, the cheque number was corrected from 223863 to 223862. At what stage this was done is not known. A similar correction was made in the affidavit accompanying the complaint also. Had these been the only two documents, there would have been no problem. However, apart from this, when the appellant-complainant himself appeared

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