SUBIR SINGH vs PARMINDER SINGH - 2024 Supreme(Online)(DEL) 29220

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2024 Supreme(Online)(DEL) 29220

HIGH COURT OF DELHI
Vikas Mahajan, J
SUBIR SINGH – Appellant
Versus
PARMINDER SINGH – Respondent
CRL.REV.P. 783/2024

Important Points

A cheque under Section 138 cannot be presented without an endorsement reflecting reduced liability, as per Supreme Court precedent.

Subject

Criminal Law - Negotiable Instruments

Act Referred

Negotiable Instruments Act, 1881 : S.138

Headnote

(A) Negotiable Instruments Act, 1881 - Section 138 - Conviction and sentence under the Act challenged - Petitioner convicted and sentenced to pay fine of Rs. 4.75 lacs or undergo imprisonment for three months - Appeal dismissed by Appellate Court - Petitioner contends liability is lesser than cheque amount, supported by cross-examination - Supreme Court decision referenced regarding endorsement on cheque for reduced liability - Notice issued to respondent, stay granted on order subject to deposit of 20% of compensation. (Paras 4, 5, 6, 8, 9)

Facts of the case:
The petitioner was convicted under Section 138 of the NI Act and sentenced to pay a fine or undergo imprisonment. The appeal against this conviction was dismissed, prompting the current petition.

Findings of Court:
The court acknowledged the petitioner's claim regarding the reduced liability and the necessity of endorsing the cheque accordingly.

Issues: The main issues addressed include the validity of the conviction under Section 138 and the implications of the cheque endorsement concerning liability.

Ratio Decidendi: The court emphasized that a cheque cannot be presented without proper endorsement reflecting the reduced liability, as established by the Supreme Court's ruling.

Result: Petition allowed, subject to conditions.

Advocates:
SHAILESH KUMAR PANDEY

ORDER

1. Allowed, subject to all just exceptions

2. Application stands disposed of.

CRL.REV.P. 783/2024

3. The present petition has been filed seeking the following relief:-

(a) Set-Aside the impugned judgment of conviction and sentence of order passed by Ld. Appellate Court vide its judgment Impugned judgment dated 02.05.2024 passed by the Court of Ms. Aparna Swami, Additional session judge, Patiala House Courts, New Delhi in Criminal Appeal No. 96/2023 titled Mr. Subir Singh vs Parminder Singh filed against the Judgment dated 28.03.2024 and the Order of Sentence dated 15.04.2023 passed by the court of Ld. Metropolitan Magistrate- 03 (Negotiable Instruments Act) in the complaint case No. 2226/2021, titled Parminder Singh vs Subir Singh, consequently acquit the accused.

4. The learned counsel for the petitioner submits that the petitioner was convicted by the Court of learned Metropolitan Magistrate under Section 138 of NI Act and was sentenced to pay the fine amount of Rs. 4.75 lacs, failing which he has to undergo simple imprisonment for a period of three months.

5. The appeal was preferred against the said order which came to be dismissed vide impugned order dated 02.05.2024. The learned counsel submits that the respondent during his cross-examination admitted that the liability of the petitioner is not to the extent of cheque amount, rather it is lesser than the cheque amount.

6. He submits that in view of the decision of the Hon’ble Supreme Court in “Dashrathbhai Trikambhai Patel vs. Hitesh Mahendrabhai Patel (2023) 1 SCC 578, the cheque could not have been presented without making an endorsement on the cheque in respect of the reduced liability apropos the said cheque.

7. He further submits that the petitioner is also ready to deposit an amount of 20% of the compensation amount in the name of the Registrar General of this Court.

8. In view of the above, issue notice to the respondent, by all permissible modes, returnable on 22.08.2024 before the Roster Bench.

9. Subject to the petitioner depositing 20% of the compensation amount i.e., Rs. 95,000/- in the name of the Registrar General of this Court within a period of 15 days, the impugned order shall remain stayed till the next date.