Debt Dispute Petitions Dismissed under Section 138

The court dismissed the petitions filed by M/s Shalini Securities Private Limited and Amandeep Singh regarding the legally enforceable debt under Section 138 of the Negotiable Instruments Act. Amandeep Singh's issuance of dishonored post-dated cheques was deemed valid, despite his resignation as a director. The court upheld the joint trial for multiple cheques and emphasized the need for evidence to determine the validity of the cheques. The petitions were dismissed with costs imposed on the petitioners, emphasizing the need for further evidence in the trial.

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Issues Involved:
1. Legally enforceable debt under Section 138 of the Negotiable Instruments Act (NI Act).
2. Validity of cheques issued by an ex-director.
3. Joint trial of multiple cheques under Section 219 of the Code of Criminal Procedure, 1973.
4. Presumption under Section 139 of the NI Act.

Summary:

Issue 1: Legally enforceable debt under Section 138 of the NI Act

Lokesh Thakkar filed a complaint under Sections 138/141 of the NI Act against M/s Shalini Securities Private Limited and Amandeep Singh. Thakkar alleged that he invested Rs. 10 crores 40 lakhs in Amandeep Singh's project, of which Rs. 9 crores 12 lakhs remained unpaid. Amandeep Singh issued 11 post-dated cheques, which were dishonored due to "Funds Insufficient." The trial court took cognizance under Section 138 of the NI Act and summoned the accused.

Issue 2: Validity of cheques issued by an ex-director

M/s Shalini Securities Private Limited and Amandeep Singh filed petitions to quash the trial court's order, arguing that Amandeep Singh was neither a Director nor an Authorized Representative of the company when the cheques were issued. Amandeep Singh had resigned in 2012, and the cheques were issued in 2018. They contended that the cheques were issued without any authority and were invalid instruments.

Issue 3: Joint trial of multiple cheques under Section 219 of the Code of Criminal Procedure, 1973

M/s Shalini Securities Private Limited argued that the joint trial for 11 cheques violated Section 219 of the Code. They also claimed that no debt was due against the company as the transactions were between Thakkar and Singh in a personal capacity.

Issue 4: Presumption under Section 139 of the NI Act

The court noted that Thakkar had made necessary allegations against the accused, and it was for them to prove during the trial how the cheques came into Singh's possession and under what circumstances they were issued. The court held that the issues require evidence and cannot be decided at this stage.

Conclusion:

The petitions were dismissed with costs of Rs. 25,000 each on M/s Shalini Securities Private Limited and Amandeep Singh, to be paid to Lokesh Thakkar before the trial court on the next hearing date. The court emphasized that the issues raised require evidence and cannot be resolved in the present petitions.

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