{"id":212441,"date":"2019-03-27T10:30:21","date_gmt":"2019-03-27T05:00:21","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=212441"},"modified":"2019-03-29T16:26:24","modified_gmt":"2019-03-29T10:56:24","slug":"bom-hc-simple-handing-over-of-cheque-does-not-make-a-person-liable-for-a-s-138-ni-act-offence","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/03\/27\/bom-hc-simple-handing-over-of-cheque-does-not-make-a-person-liable-for-a-s-138-ni-act-offence\/","title":{"rendered":"Bom HC | Simple handing-over of cheque does not make a person liable for a S. 138 NI Act offence"},"content":{"rendered":"

Bombay High Court:<\/strong>\u00a0C.V. Bhadang, J., set aside an order passed by the Magistrate whereby process\u00a0was issued against the petitioner for an offence punishable under Section 138 read with Section 142 of the Negotiable Instruments Act, 1881.<\/p>\n

The complainant gave a flat to the petitioner on leave and license basis. According to the complainant, the petitioner handed-over to her a cheque in the sum of Rs 12,000 drawn on State Bank of India, towards payment of license fee for one month. However, when presented for encashment, the cheque was returned dishonoured on account of “insufficient funds”. In such background, the complainant filed a complaint under Section 138 against the petitioner, in which the impugned order of issue of process was passed.<\/p>\n

Galileo Francisco Teles, Advocate represented the petitioner. On the other hand, John Abreu Lobo, Advocate appeared for the complainant.<\/p>\n

The High Court noted that the petitioner simply\u00a0handed over\u00a0<\/em>the cheque in question to the complainant, allegedly towards payment of one month’s license fee. It was not a case that the cheque was\u00a0issued\u00a0<\/em>by the petitioner, much less on his account with SBI. There was letter produced from SBI stating that the account number on which the cheque was issued did not stand in name of the petitioner. The Court observed,\u00a0“It is trite that a complaint under Section 138 of the Act, lies only against the drawer of the cheque, when the cheque issued by the drawer, on his account is dishonoured for want of funds. It was not seriously disputed during the course of the arguments at bar that the petitioner is neither a drawer nor the cheque is issued on his account. It is thus difficult to see as to how, process can be issued against the petitioner in the absence of the basic requirements of the offence under Section 138 of the Act being satisfied.”\u00a0<\/strong>Stating thus, it was held that the impugned order was not sustainable and was therefore set aside. [Hiralal Govekar v. Sheela Surlakar, 2019 SCC OnLine Bom 507<\/b><\/a>, dated 20-03-2019]<\/p>\n","protected":false},"excerpt":{"rendered":"

Bombay High Court:\u00a0C.V. Bhadang, J., set aside an order passed by the Magistrate whereby process\u00a0was issued against the petitioner for an offence <\/p>\n","protected":false},"author":8808,"featured_media":74381,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[28514,33385,34538,34539],"class_list":["post-212441","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-cheque","tag-insufficient-funds","tag-section-138-negotiable-instruments-act","tag-section-142-of-negotiable-instruments-act"],"yoast_head":"\nBom HC | Simple handing-over of cheque does not make a person liable for a S. 138 NI Act offence | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2019\/03\/27\/bom-hc-simple-handing-over-of-cheque-does-not-make-a-person-liable-for-a-s-138-ni-act-offence\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bom HC | Simple handing-over of cheque does not make a person liable for a S. 138 NI Act offence\" \/>\n<meta property=\"og:description\" content=\"Bombay High Court:\u00a0C.V. 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Kalaiyarasan, J., accused was acquitted of the charges under Section 138 of Negotiable Instruments Act, 1881, confirming the decision of the first appellate court. The brief facts of the case states that the complainant\/ appellant had given an\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":193825,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/03\/07\/presence-legally-recoverable-debt-time-issuing-cheque-necessity-action-s-138-ni-act\/","url_meta":{"origin":212441,"position":4},"title":"Presence of a legally recoverable debt at the time of issuing cheque is a necessity for an action under S. 138 NI Act","author":"Saba","date":"March 7, 2018","format":false,"excerpt":"Karnataka High Court: A Single Judge Bench comprising of K. Somashekar, J., decided a criminal appeal filed under Section 378(4) CrPC, wherein the order of acquittal under Section 138 of Negotiable Instruments Act, passed in favour of the respondent by the trial court was upheld. 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