RAJNESH OSWAL
Sheikh Owais Tariq – Appellant
Versus
Satvir Singh – Respondent
JUDGMENT
The petitioner had filed a complaint under section 138 of the Negotiable Instruments Act, 1881 (for short ‘the Act’) against the respondent, as the cheque claimed to have been issued by the respondent was dishonoured due to the reason ‘Account Frozen’.
2. The learned court of 3rd Additional Munsiff (JMIC), Srinagar (hereinafter to be referred as ‘the Trial Court’) vide order dated 23.08.2014 issued the process against the respondent for commission of offence under section 138 of the Act. The respondent filed an application before the learned Trial Court stating therein that as the cheque in question has been dishonoured due to the frozen account, the complaint under section 138 of the Act was not maintainable. The learned Trial Court after hearing the parties, dismissed the said application vide order dated 04.11.2017. The respondent being aggrieved of orders dated 23.08.2014 (order of issuance of process) and 04.11.2017 passed by the learned Trial Court, filed a revision petition thereby impugning both the orders mentioned above before the court of learned Principal Sessions Judge, Srinagar (hereinafter to be referred as ‘the Revisional Court’). The learned Revisional Cour
(1) Dishonour of cheque – If Magistrate takes cognizance of an offence, issues process without there being any allegation against accused, in absence of any review power or inherent power with subord....
A complaint under Section 138 of the Negotiable Instruments Act is maintainable even if the cheque is dishonoured due to the account being frozen.
Dishonor of a cheque due to account blockage does not fulfill the criteria for an offense under Section 138 of the Negotiable Instruments Act, as the account was not maintained by the drawer.
The dishonour of a cheque due to 'Account Closed' falls within the parameters of Section 138 of the N.I. Act, and the presumption under Section 139 applies.
The dishonour of a cheque and lack of payment under Section 138 establishes legal liability unless rebutted, with presumption favoring the holder of the cheque.
Cheque dishonour complaint under Section 138 not quashable under inherent powers when reason for return (insufficient funds vs. account freeze) is disputed and requires evidentiary determination at t....
Conviction under Section 138 of the Negotiable Instruments Act affirmed, emphasizing the necessity of due process in criminal trials and the validity of a Magistrate's authority.
If cheque is returned by bank unpaid, on the ground that amount of money standing to credit of account is insufficient to honour cheque or it exceeds amount arranged to be paid from the account by an....
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