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HARKESH MANUJA
Simranpreet Singh – Appellant
Versus
Satnam Singh – Respondent
ORDER
Mr. Harkesh Manuja, J. (Oral)
By way of present petition, prayer has been made for quashing of complaint under Section 138 of the Negotiable Instrument Act, 1881 (for short, NI Act") as well as summoning order dated 08.05.2023 passed by the Court below, whereby the petitioner has been summoned.
2. On account of dishonour of cheque bearing No.803624 dated 31.01.2023, amounting to Rs.5,50,000/-, issued by the petitioner, the respondent-complainant filed a complaint under Section 138 of the NI Act. Relevant portion from the complaint is extracted hereunder:-
The existence of a legally enforceable debt under Section 138 of the NI Act must be determined at trial, and factual disputes cannot be resolved at the pre-trial stage.
Once the entire cheque amount is paid and accepted, the liability under Section 138 of the Negotiable Instruments Act ceases, and interest cannot be claimed unless specified in the cheque.
The legal provisions of the NI Act create a deeming offence for dishonour of cheques and establish a presumption of debt or liability upon the holder of the cheque, with a reverse onus cast on the ac....
Accused failed to rebut the presumption of debt under Section 139, leading to acquittal being upheld despite dishonoured cheques. Evidence must sufficiently support claims of payment to avoid prosecu....
Part payments made before cheque presentation can invalidate the enforceability of the debt under Section 138 of the Negotiable Instruments Act.
Presumption against the drawer of the cheque, dishonour of cheques due to closure of the account, and the petitioner's failure to rebut the presumption.
A legal notice under Section 138 must clearly state the cheque amount due; a vague demand fails to meet legal requirements, rendering the complaint invalid.
The dishonour of cheques and the existence of a legally enforceable debt must be proved, and the presumption under section 139 of the NI Act can only be rebutted with strong evidence.
A cheque must represent a legally enforceable debt at maturity; part payments prior to presentation defeat claims under Section 138 of the NI Act.
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