RAJIV GUPTA
Mahendra Singh Ravat – Appellant
Versus
State of U. P. – Respondent
JUDGMENT
Rajiv Gupta, J.
Heard learned counsel for the applicant, learned AGA for the State and perused the record.
2. This application under Section 482 Cr.PC has been filed by the applicant for quashing the entire proceedings of complaint case no. 1272 of 2019, under section 138 of N.I. Act P.S. Chhapar, District Muzaffar Nagar, pending in the court of C.J.M/Special Court, N.I. Act., Muzaffar Nagar.
3. As per the allegations made in the complaint, it is alleged that the applicant had issued a cheque bearing no. 608249 dated 16.9.2019 in favour of the Opposite Party No.2 for an amount of Rs.20.00 lacs. On presentation of the said cheque before the Bank, it was dishonoured and returned back.
4. After dishonour of the cheque, a legal notice was sent to the applicant to make good the payment of the cheque amount, however, despite being noticed, the applicant has not made good the payment of the cheque amount, as such, a complaint under section 138 of Negotiable Instruments Act has been filed by the Opposite Party No.2 against the applicant.
5. On the basis of the said complaint, learned Magistrate, after considering the allegations made in the complaint and making requisite enquiry un
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.
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....
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