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PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
MANISHA BATRA
Gagandeep Singh Swani – Appellant
Versus
Karan Kwatra – Respondent
JUDGMENT :
Manisha Batra, J. (Oral)
The instant petition has been filed under Section 528 of Bharatiya Nagarik Suraksha Sanhita, 2023 (for short 'BNSS') seeking quashing of Criminal Complaint bearing No. COMA/7138/2020, titled as Karan Kwatra vs. M/s Swani Motor Services Pvt. Ltd. and others, filed under Section 138 of the Negotiable Instruments Act, 1881 (for short 'N. I. Act'), order dated 10.02.2021 passed in the aforesaid complaint, thereby summoning the present petitioner as an accused to face trial for commission of aforementioned offence and also for quashing of order dated 29.05.2025, whereby an application filed by the petitioner for calling upon the jurisdictional Income Tax Department to verify the cash transaction, on the basis of which, cheque in question was alleged to be issued, had been dismissed.
2. Brief facts of the case relevant for the purpose of disposal of the present petition are that the aforementioned complaint has been filed by the respondent/complainant on the allegations that in order to discharge his legally enforceable liability, the petitioner, who is Director of M/s Swani Motor Services Pvt. Ltd. (for short 'company'), and the company had issued a cheq
Violations of cash transaction regulations under the Income Tax Act do not render debts legally unenforceable under the Negotiable Instruments Act.
The legal enforceability of debt or liability under the NI Act is influenced by the provisions of the Income Tax Act, and unaccounted cash transactions may impact the enforceability of debts.
A cash transaction exceeding Rs. 20,000 does not invalidate a legally enforceable debt under the Negotiable Instruments Act, which presumes a cheque pertains to such a debt upon acknowledgment of sig....
Violation of Section 269 SS of the Income Tax Act does not render transactions unenforceable under the Negotiable Instruments Act, as the presumption of liability remains unless effectively rebutted ....
The legal presumption under Section 139 of the NI Act favors the complainant, and factual disputes must be resolved at trial, not pre-trial.
Dishonour of cheque – In exceptional circumstances, Court may take notice of attending circumstances to conclude that continuance of proceedings would amount to abuse of process of Court, or where qu....
The presumption under Sections 118(a) and 139 of the Negotiable Instruments Act does not absolve the complainant from proving the existence of the loan beyond reasonable doubt.
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