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IN THE HIGH COURT OF MADHYA PRADESH AT JABALPUR
DINESH KUMAR PALIWAL
Dheeraj Kumar Verma – Appellant
Versus
Sachin – Respondent
ORDER :
(DINESH KUMAR PALIWAL, J.)
This petition under Section 482 of Cr.P.C. has been filed for quashment of complaint case number S.C.N.I.A./3912/2019 (Sachin Vs. Dheeraj) registered under Section 138 of Negotiable Instruments Act, 1881 (in short hereinafter referred to as “the Act of 1881”) against the petitioner filed on behalf of respondent Sachin Jain.
2. Respondent filed a complaint under Section 138 of the Act of 1881 against the petitioner arraigning him as accused with an averment that he borrowed Rs.5,60,000/- from him on various dates between a period from 31.10.2014 to 03.04.2015. He made entries of the aforesaid amount in a diary. When complainant was in need of money, he asked the accused to return the money. The petitioner assured respondent to return the amount soon and in that regard he issued a cheque of an amount of Rs.5,60,000/- dated 02.03.2019 of Corporation Bank, Branch Gopal Ganj, Sagar bearing cheque No.227345. The cheque issued by the petitioner was presented by the respondent in his State Bank account Gujarati Bajar Branch, Sagar on 20.03.2019, but the same was dishonored on account of funds insufficient. Eventually, a notice under Section 138 of the Act
A debtor's issuance of a cheque acknowledges a debt; questions of enforceability or time-bar must be determined through evidence, not prior to trial.
The legal enforceability of a debt, including whether it is time-barred, is a question of fact requiring trial evidence, and cannot be quashed under Section 482 of Cr.P.C.
The legal enforceability of debt, time-barred debt, and the presumption under Section 139 of the NI Act are disputed questions of fact, requiring evidence and trial to determine, and should not be de....
The nature of the debt must be proven during trial, and there is a presumption in favor of the holder of the cheque.
Dishonour of cheque – Cheque itself is a promise to pay even if debt is barred by time.
The issue of whether a cheque was issued for a time-barred debt is a matter for evidence and cannot be adjudicated before the court.
Dishonour of cheque – When a cheque is issued towards a time-barred debt and is dishonoured, liability under Section 138 of N.I. Act squarely arises.
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