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of <h1>Petition to Quash Summons Dismissed, Burden of Proof on Accused</h1> <h3>Vihan Exims Company Pvt. Ltd. & Ors. Versus State, Govt of NCT of Delhi & Ors.</h3> Vihan Exims Company Pvt. Ltd. & Ors. Versus State, Govt of NCT of Delhi & Ors. - TMI Issues Involved:1. Quashing of impugned notice framed under Section 251 of the CrPC.2. Setting aside of summoning order under Section 138 of the NI Act.3. Legally enforceable debt or liability under Section 138 of the NI Act.4. Issuance and validity of security cheques.5. Jurisdiction of High Court under Section 482 of the CrPC.Summary:1. Quashing of Impugned Notice under Section 251 of the CrPC:The petitioners sought to quash the notice framed under Section 251 of the CrPC, arguing that the notice was erroneous and lacked reasons. The court found that the notice framed by the learned MM was based on the material on record and pre-summoning evidence, hence, it was not a non-speaking order.2. Setting Aside of Summoning Order under Section 138 of the NI Act:The petitioners challenged the summoning order dated 26.08.2021, claiming that the cheques were issued as security and not towards any legally enforceable debt. The court held that the issuance of cheques was not disputed, and whether they were given as security or towards a legally enforceable debt is a matter of trial.3. Legally Enforceable Debt or Liability:The court analyzed whether the cheques issued as security could be considered for discharge of a legally enforceable debt. It referred to multiple precedents, including Sripati Singh v. State of Jharkhand and Sunil Todi v. State of Gujarat, emphasizing that cheques given as security can attract Section 138 of the NI Act if the debt becomes due and payable.4. Issuance and Validity of Security Cheques:The court discussed the nature of security cheques and their enforceability under Section 138 of the NI Act. It concluded that security cheques, once the debt becomes due, can be presented for encashment, and their dishonor can lead to criminal liability.5. Jurisdiction of High Court under Section 482 of the CrPC:The court reiterated that the power under Section 482 of the CrPC should be exercised sparingly and with circumspection. It held that the factual disputes raised by the petitioners, including the nature of the cheques and the existence of debt, are matters to be adjudicated at trial and not in a petition under Section 482.Conclusion:The petition to quash the notice and summoning order was dismissed. The court emphasized that the presumption of the cheques being issued in discharge of liability must be given due weightage, and the burden of proving otherwise lies on the accused during the trial. The court found no merit in the petitioners' arguments to quash the proceedings at this stage.
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