NDLI: Dashrathbhai Trikambhai Patel Vs. Hitesh Mahendrabhai Patel & Anr

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	1881 Negotiable Instruments Act
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Case(s) Referred	Referred Case 0 Referred Case 1 Referred Case 2 Referred Case 3 Referred Case 4
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Dismissed
Headnote	Negotiable Instruments Act, 1881 – s. 138 and s. 56 r/w s. 15 – Legally enforceable debt on the date of maturity – Whether offence u/s. 138 would deem to be committed if the cheque that is dishonoured does not represent the enforceable debt at the time of encashment – Whether s. 138 would still be attracted when the drawer of the cheque makes a part payment towards the debt or liability after the cheque is drawn but before the cheque is encashed, for the dishonour of the cheque which represents the full sum – Held: For commission of an offence u/s. 138, the cheque that is dishonoured must represent a legally enforceable debt on the date of maturity or presentation – If the drawer of the cheque pays a part or whole of the sum between the period when the cheque is drawn and when it is encashed upon maturity, then the legally enforceable debt on the date of maturity would not be the sum represented on the cheque – When a part or whole of the sum represented on the cheque is paid by the drawer of the cheque, it must be endorsed on the cheque as prescribed in s. 56 – The cheque endorsed with the payment made may be used to negotiate the balance, if any – If the cheque that is endorsed is dishonoured when it is sought to be encashed upon maturity, then the offence u/s. 138 will stand attracted – On facts, the first respondent made part-payments after the debt was incurred and before the cheque was encashed upon maturity – The sum of rupees twenty lakhs represented on the cheque was not the ‘legally enforceable debt’ on the date of maturity – Thus, the first respondent cannot be deemed to have committed an offence u/s. 138 when the cheque was dishonoured for insufficient funds.Negotiable Instruments Act, 1881 – s. 138 and s. 56 r/w s. 15 – Prosecution u/s. 138 – Endorsement of part-payment on the cheque – Effect of – Held: When such an endorsement is made, the instrument could still be used to negotiate the balance amount.Negotiable Instruments Act, 1881 – s. 138 – Term ‘debt or other liability’ used in s. 138 – Meaning of – Discussed.
Judge	Hon'ble Dr. Justice D.Y. Chandrachud
Neutral Citation	2022 INSC 1067
Petitioner	Dashrathbhai Trikambhai Patel
Respondent	Hitesh Mahendrabhai Patel & Anr
SCR	[2022] 16 S.C.R. 522
Judgement Date	2022-10-11
Case Number	1497

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