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W. DIENGDOH
Fourness Dhar – Appellant
Versus
Corsica Shabong – Respondent
JUDGMENT
1. This is a petition filed under Section 482 Cr.P.C, wherein the petitioner has approached this Court with a prayer to set aside and quash the Complaint Case No. 114 (S) of 2021 under Section 138 of the Negotiable Instruments Act (NI Act), 1881 and which case is pending before the Court of the learned Judicial Magistrate First Class at Shillong.
2. Heard Mr. L. Shongwan, learned counsel for the petitioner who has submitted that the case of the petitioner is that on 15.10.2019, the petitioner and the respondent No. 1 on one side and the proforma respondent on the other side, have jointly entered into an Agreement for Sale of a plot of land situated at Bishop Cotton Road, Shillong measuring about 18,262.69 sq.ft, which land belongs to the proforma respondent, with the petitioner and the respondent No. 1 being the proposed buyers. The agreed consideration for the said plot of land is Rs. 2,60,00,000/- (Rupees two crores sixty lakhs).
3. Prior to the date fixed for execution of the final Sale Deed, in the month of May, 2019, the respondent No. 1 apparently backed out of the deal citing inability to fulfil her part of the monetary commitment. The petitioner then agreed to carry
The inability to honor a cheque under Section 138 of the NI Act is not actionable if there is no legally enforceable debt or liability attributed to the issuing party.
A person who is not a signatory to the cheque cannot be prosecuted under Section 138 of the Negotiable Instruments Act, 1881, for the offence of dishonour of cheque for insufficiency of funds.
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.
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....
The main legal point established is that the issuance of blank cheques as security for a loan attracts penal provisions of Section 138 NI Act, and the burden of proving the absence of a legally enfor....
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.
Obligations under a Memorandum of Understanding can establish legally enforceable debt, relevant to Section 138 of the NI Act.
(1) Dishonour of cheque – At stage of issuance of process, statutory presumption under Section 139 of N.I. Act cannot be dislodged in a summary manner merely by contending that cheque issued was not ....
A PRESUMPTION THAT A CHEQUE PERTAINS TO A LEGALLY ENFORCEABLE DEBT OR LIABILITY ARISES WHEN THE SIGNATURE ON THE CHEQUE IS ADMITTED, BUT THIS PRESUMPTION IS REBUTTABLE AND THE BURDEN OF PROOF LIES ON....
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