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2006 Supreme(Online)(SC) 29

SUPREME COURT
Y. K. Sabharwal, B. N. Srikrishna, S. H. Kapadia, JJ.
State Farm Corpn. of India Ltd. v. M/s. Nijjer Agro Foods Ltd. and Others


Table of Content
1. leave granted and complaints initiated under relevant section. (Para 1 , 2)
2. the need for trial to address payment disputes is highlighted. (Para 3)
3. the court restores cases for trial and allows appeal. (Para 4 , 5)

1. Leave granted.

3. Though, at this stage, we are not going into the merits, but we may only note that the subject matter of the two complaints are four cheques in all amounting to Rs.76,55,917.47 ps. According to the respondents, they made payment of Rs. 40 lacs by six bank drafts after the issue of some of the cheques. Whether the said payment has been made or it is towards some of the amounts covered by the cheques are all the questions which can be decided only at the trial of the complaint cases under S.138 of the Negotiable Instruments Act and could not have been made the basis of allowing the revision petition. The approach of the High Court is clearly erroneous.

5. The appeals are allowed accordingly.

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