RAJIV GUPTA
Ankit Awasthi – Appellant
Versus
State of U. P. – Respondent
| Table of Content |
|---|
| 1. quashing application regarding cheque dishonor. (Para 2 , 3 , 4 , 5) |
| 2. arguments about liability and cheque misuse. (Para 7 , 8 , 9) |
| 3. analysis of liability under section 138 n.i. act. (Para 10) |
| 4. legitimacy of proceedings validated. (Para 11) |
| 5. dismissal of application due to lack of merit. (Para 12 , 13) |
JUDGMENT
Rajiv Gupta, J.
Heard learned counsel for the applicant, learned A.G.A. and perused the record.
2. The instant application under section 482 Cr.P.C. has been filed to quash the impugned summoning order dated 03.08.2023 passed by the court of learned Metropolitan Magistrate-II, Kanpur Nagar in Complaint Case No. 142253 of 2022 (Anil Kumar Pal v. Ankit Awasthi), under section 138 N.I. Act, Police Station Chakeri, District Kanpur Nagar as well as the entire proceeding of case No. 142253 of 2022 (Anil Kumar Pal v. Ankit Awasthi), under section 138 N.I. Act, Police Station Chakeri, District Kanpur Nagar pending in the court of Metropolitan Magistrate-II, Kanpur Nagar.
3. As per the allegation made in the complaint, it is alleged that the applicant had issued a cheque No. 418170 dated 21.04.2022 for a sum of Rs. one lac to the opposite party no. 2. However, on
A sole proprietor can be held individually liable under Section 138 of the N.I. Act, even if the cheque was issued as a security. Arguments regarding vicarious liability and misuse are insufficient f....
Dishonour of a cheque under Section 138 is actionable regardless of claims of stop payment or misplaced cheque, with legal presumptions favoring existence of debt or liability.
Dishonour of a cheque due to insufficient funds constitutes an offence under Section 138 of the N.I. Act, regardless of claims of theft, unless the evidence at trial proves otherwise.
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