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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.

2. Two complaints under S.138 of the Negotiable Instruments Act were filed by the appellant against the respondents. In those complaints, the Metropolitan Magistrate, New Delhi issued summons to the respondents. An application filed by them for dropping the proceedings was dismissed in terms of the order of learned Magistrate, dated 26th April, 1999, holding that 'whether the cheques were issued for discharge of debt/liability can be decided only after recording evidence. At the stage of summoning the respondents Court has just to see whether prima facie case is made out against the accused or not under S.133 of the N. I. Act.' Further, it was held, whether the respondents have made payment by way of bank drafts in lieu of the cheques which are subject matter of complaints can also be decided at the trial and not at the stage of summoning and by way of an application seeking to drop the criminal complaint proceedings. Quite strang



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