Delhi High Court Quashes Summons in Cheque Payment Dispute Under Section 138

The High Court of Delhi quashed the order summoning the accused in a case involving a dispute over a cheque payment under Section 138 of the NI Act 1881. The court emphasized that the cheque was not dishonored due to insufficient funds but due to a business-related issue between the parties. The complaint detailed an agreement for work and advance payment via the cheque. The court suggested resolving the business-related dispute in a civil forum, leading to the dismissal of the complaint and summoning order.

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Issues involved: Complaint u/s 138 of NI Act 1881, dispute over cheque payment, business-related dispute between parties.

Summary:
The respondent filed a complaint u/s 138 of the NI Act 1881 against the petitioners, accusing them of not honoring a cheque issued as advance payment for work to be done. The complaint detailed an agreement for laying pipes and the subsequent payment issues. The complainant admitted that the cheque was not for consideration but for advance payment. Despite having sufficient funds, the cheque was returned with the remark 'payment stopped by the drawer.' The court noted a serious business dispute between the parties and emphasized that the cheque was not dishonored due to insufficient funds but due to a business-related issue. The court quashed the order summoning the accused, suggesting the parties resolve their dispute in a civil forum.

In conclusion, the High Court of Delhi quashed the order summoning the accused and the complaint, allowing the parties to settle their business-related dispute in a civil forum.

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