{"id":217422,"date":"2019-07-29T09:48:29","date_gmt":"2019-07-29T04:18:29","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=217422"},"modified":"2019-07-31T13:19:16","modified_gmt":"2019-07-31T07:49:16","slug":"del-hc-summons-issued-under-s-138-ni-act-quashed-in-absence-of-necessary-averments-in-the-complaint","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/07\/29\/del-hc-summons-issued-under-s-138-ni-act-quashed-in-absence-of-necessary-averments-in-the-complaint\/","title":{"rendered":"Del HC | Summons issued under S. 138 NI Act quashed in absence of necessary averments in the complaint"},"content":{"rendered":"

Delhi High Court:\u00a0<\/strong>Sunil Gaur, J. allowed a petition filed against the order of the trial court whereby it had passed summoning orders against the petitioners in a complaint filed for committing of an offence under Section 138\u00a0(dishonour of cheque)\u00a0<\/em>of the Negotiable Instruments Act, 1881.<\/p>\n

The petitioners, represented by Senior Advocate N. Hariharan with Ashwani Kr. Dhatwalia, Iti Sharma and Kuljeet Rawal, Advocates, prayed for quashing the summoning orders as well as the complaint filed under Section 138. They relied on Indus Airways (P) Ltd. v. Magnum Aviation (P) Ltd.,<\/em>(2014) 12 SCC 539<\/a> for submitting that the cheques in question were security cheques, they disputed that there was no existing debt or liability. Per contra, Ashish Pratap Singh and Deepa Sharma, Advocates appearing for the complainant submitted that the cheques in question were towards an existing liability and were not security cheques.<\/p>\n

The High Court referred to Pepsi Foods Ltd. v. Special Judicial Magistrate,\u00a0<\/em>(1998) 5 SCC 749<\/a> quashed the complaint and the summoning order, as it was found that there were no averments in the complaint on the basis of which a complaint could be maintained. Further, in\u00a0SMS Pharmaceuticals Ltd. v. Neeta Bhalla,\u00a0<\/em>(2005) 8 SCC 89<\/a> reiterated that in the case of Section 138, the essential averments are to be made in the complaint. Again, in Omniplast (P) Ltd. v. Standard Chartered Bank,\u00a0<\/em>(2015) 15 SCC 693<\/a>, it was declared that in the absence of requisite pleadings in respect of the transaction concerned, quashing of the complaint of Section 138 NI Act is justified.<\/p>\n

In the present matter, after perusing the record, the Court was of the opinion that the necessary ingredients to maintain the complaints in question were lacking, thereby rendering the impugned order unsustainable and so, the continuance of proceedings arising out of the complaints in question would be an exercise in futility. Resultantly, the impugned complaints and the summoning orders were quashed.[Shivom Minerals Ltd., v. State, 2019 SCC OnLine Del 9329<\/b><\/a>, decided on 17-07-2019]<\/p>\n","protected":false},"excerpt":{"rendered":"

Delhi High Court:\u00a0Sunil Gaur, J. allowed a petition filed against the order of the trial court whereby it had passed summoning orders <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[2862,30817,23584,31605],"class_list":["post-217422","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-dishonour_of_cheque","tag-orders","tag-section-138-ni-act","tag-summon"],"yoast_head":"\nDel HC | Summons issued under S. 138 NI Act quashed in absence of necessary averments in the complaint | 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\" 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directors without reference to their role in relation to a transaction, or to the issuance or dishonour of a cheque by the company, requires to be deprecated and discouraged, since it amounts to abuse of the salutary process of criminal\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"delhi high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/05\/delhi-high-court.webp?resize=700%2C400&ssl=1 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Petitioners were independent directors of the accused company. MIC Electronics Ltd.\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":267807,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/06\/03\/dishonour-of-cheque-section-138-ni-act-delhi-high-court-law-legal-news-legal-updates\/","url_meta":{"origin":217422,"position":2},"title":"Presumption against signatory of a Cheque, Plea of lost cheque to be proved at trial: Del HC refuse quashing of summoning order for S. 138 NI Act offence","author":"Bhumika Indulia","date":"June 3, 2022","format":false,"excerpt":"Delhi High Court: Asha Menon, J. refused to allow a petition filed under Section 482 CrPC seeking quashing of summoning order passed by the Metropolitan Magistrate, Patiala House Courts in complaint filed by the respondents 1 and 2 against the petitioner under Section 138 read with Section 142 of the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/DelPresump.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/DelPresump.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/DelPresump.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/DelPresump.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/06\/DelPresump.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":236302,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/09\/25\/all-hc-once-the-intention-of-the-party-is-clear-that-he-does-not-wish-to-make-payment-should-complainant-wait-for-15-days-to-file-a-complaint-for-dishonour-of-cheque-allahabad-hc-answers\/","url_meta":{"origin":217422,"position":3},"title":"All HC | Once the intention of the party is clear that he does not wish to make payment, should complainant wait for 15 days to file a complaint for dishonour of cheque? HC answers","author":"Editor","date":"September 25, 2020","format":false,"excerpt":"Allahabad High Court: In the instant case where the summoning order issued as per the requisites of Section 138 of Negotiable Instrument Act, 1881, was challenged as being \u2018bad in law\u2019 and the question arose that once the intention of the party is clear that he does not wish to\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":350998,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/06\/19\/cheque-dishonour-frozen-account-not-offence-ni-act-delhi-high-court-legal-news\/","url_meta":{"origin":217422,"position":4},"title":"Cheque Dishonour due to Frozen Account not Offence Under NI Act: Delhi High Court interprets \u201caccount maintained\u201d under Section 138 NI Act","author":"Arunima","date":"June 19, 2025","format":false,"excerpt":"\u201cEven though the cheque return memo may mention its reason for dishonor as \u201cinsufficient funds\u201d, the fact remains that, the petitioners' account was frozen by the CGST Department, and thus, it could not be said to be \"maintained\" by them.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Delhi High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Delhi-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":222807,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/12\/04\/del-hc-s-138-ni-act-epf-society-facilitating-purchase-of-houses-on-behalf-of-its-members-held-not-liable-for-dishonour-of-cheques-issued-to-the-builder\/","url_meta":{"origin":217422,"position":5},"title":"Del HC | S. 138 NI Act; EPF society facilitating purchase of houses on behalf of its members held not liable for dishonour of cheques issued to the builder","author":"Bhumika Indulia","date":"December 4, 2019","format":false,"excerpt":"Delhi High Court:\u00a0Suresh Kumar Kait, J., allowed a petition wherein directions were sought for quashing the complaint case filed against the petitioner under Section 138\u00a0(dishonour of cheque)\u00a0read with Sections 141\u00a0(offences by companies)\u00a0and 142\u00a0(cognizance of offence)\u00a0of the Negotiable Instruments Act, 1881. The petitioner- Society, Employees Welfare Fund of the employees of\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":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/217422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=217422"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/217422\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=217422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=217422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=217422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}