Content Provider | Supreme Court of India |
---|---|
e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Dishonour of cheque |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Negotiable Instruments Act, 1881 (26 of 1881) |
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 Allowed |
Headnote | Negotiable Instruments Act, 1881 – s.138 – Appellant borrowed Rs.2,00,000/- from the complainant – On receipt of demand, appellant issued a cheque for the said amount – It was dishonoured due to insufficient funds and ‘payments stopped by drawer’ – The complainant issued a notice of demand – No action on the part of the appellant was taken – Pursuant thereto, a criminal proceeding was initiated against appellant – Equally, though, the appellant had filed a civil suit with prayers to declare the said cheque as a security; direction for return of cheque and prohibitory injunction restraining any steps to encash the said cheque – The suit was decreed in favour of appellant – However, the Court seized of the s.138 N.I. Act complaint, convicted the appellant herein to undergo simple imprisonment for one year as well as pay compensation of Rs.2 lakhs in default whereof, he was to undergo further simple imprisonment for six months – First Appellate upheld the conviction – The High Court, in revision, observed no perversity in the concurrent findings of the Trial Court and First Appellate Court – Propriety: Held: The position as per K.G. Premshanker vs. Inspector of Police & Anr is that sentence and damages would be excluded from the conflict of decisions in civil and criminal jurisdictions of the Courts – Therefore, in the present case, considering that the Court in criminal jurisdiction has imposed both sentence and damages, the ratio of the above-referred decision dictates that the Court in criminal jurisdiction would be bound by the civil Court having declared the cheque, the subject matter of dispute, to be only for the purposes of security – In that view of the matter, the criminal proceedings resulting from the cheque being returned unrealized due to the closure of the account would be unsustainable in law and, therefore, are to be quashed and set aside. [Paras 11 and 12] |
Judge | Hon'ble Mr. Justice Sanjay Karol |
Neutral Citation | 2024 INSC 260 |
Petitioner | Prem Raj |
Respondent | Poonamma Menon & Anr. |
SCR | [2024] 4 S.C.R. 29 |
Judgement Date | 2024-04-02 |
Case Number | 1858 |
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