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W. DIENGDOH
Fourness Dhar – Appellant
Versus
Corsica Shabong – Respondent
| Table of Content |
|---|
| 1. petitioner files to quash complaint under ni act. (Para 1 , 2 , 3 , 4 , 5 , 6 , 7 , 8 , 9) |
| 2. arguments about enforceability of cheque liability. (Para 10 , 11 , 12 , 13) |
| 3. respondent's claims concerning the sale deed. (Para 14 , 15 , 16) |
| 4. defense against quashing based on legal precedents. (Para 17 , 18 , 19 , 20 , 21 , 22) |
| 5. court's analysis of debt enforceability and jurisdiction. (Para 26 , 28 , 29 , 30 , 32) |
| 6. court quashes the proceedings in light of findings. (Para 35 , 36) |
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, Shillon
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 cheque issued as security does not negate potential liability under S.138 of the Negotiable Instrument Act if essential legal conditions are met.
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 ....
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