Back
SUVIR SEHGAL
Davinder Kumar – Appellant
Versus
State Bank of India – Respondent
JUDGMENT :
Suvir Sehgal, J.
Short question that arises for consideration in the present petition is as to whether the State Bank of India (for short "the bank"), complainant-respondent is the payee or the holder in due course of the disputed cheque and is entitled to maintain a complaint under Section 138 of the Negotiable Instruments Act, 1881 (for short "the N.I. Act").
2. Factual position is not in dispute.
3. Accused-petitioner is the proprietor of M/s.Kissan Sahara Centre and is also a partner, along with others, in M/s.Shaktiman Bio Touch. Both the firms have business dealings inter se as well as with the bank. M/s.Kissan Sahara Centre issued a cheque dated 01.02.2017 (for short "the disputed cheque") drawn in favour of M/s.Shaktiman Bio Touch for Rs.5 lacs, which on encashment, was dishonoured on account of insufficient funds. The bank issued legal notice dated 24.02.2017, Annexure P3, and instituted the impugned complaint under Section 138 read Section 142 of the N.I. Act, Annexure P4, against the petitioner. By impugned order dated 30.03.2017, Annexure P5, petitioner was summoned and upon his causing appearance, notice of accusation was served upon him and the trial was set in
The bank cannot initiate proceedings under Section 138 of the N.I. Act as it is neither the payee nor the holder in due course of the disputed cheque.
The main legal point established in the judgment is that the proprietor or partner of a firm can maintain a complaint under Section 138 of the N.I. Act in his own name as a holder in due course of th....
Only the payee or holder in due course has standing to lodge a complaint under Section 138 of the Negotiable Instruments Act.
A third party does not have the locus standi to prosecute the drawer of a cheque for an offence under Section 138 of the Negotiable Instruments Act, unless they are the payee or the holder in due cou....
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'.
:DISHONOUR OF CHEQUE – ACQUITTAL UNDER - under Section 139 of the N.I. Act, there is a presumption that the holder of the cheque received it for the discharge of debt or liability, but the existence ....
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
