TaxTMI 
TaxTMI 
2016 (1) TMI 951
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....minal Revision No.41 of 2012 and set aside the conviction of respondent Haren Mudoi under Section 138 of the Negotiable Instruments Act, 1881 and dismissed Criminal Appeal No.10 of 2012 filed by the Complainant/Appellant. 3. The Complainant/Appellant in these appeals is a partner in M/s. Ayaan Consortium. He entered into an agreement with one Nazimul Islam for construction of a multi-storeyed building over a certain parcel of land. It is not in dispute that the Complainant/Appellant paid to Nazimul Islam in connection with the said agreement a sum of Rs. 10,00,000/- (Rupees Ten Lakhs only). It is also not in dispute that the agreement did not materialise in the execution of the work in question with the result that the same was cancelled....
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....that Respondent No.2-Haren Mudoi appeared on the scene and indemnified the Complainant/Appellant by acknowledging that the cheques in question were actually issued by him and handed over to Nazimul Islam. This acknowledgment was reflected in the form of an endorsement on the Promissory Note in which he agreed to the cheques being presented for payment after 25th September, 2007. The Complainant/Appellant accordingly once again presented the cheques for payment on 5th November, 2007 but the same were dishonoured by the bank for the third time. This led to the issue of a statutory notice by the Complainant/Appellant to which the Respondent sent a reply through the lawyer denying that he had any knowledge of handing over of all the cheques to ....
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....Appeal No.10 of 2012 and Criminal Revision No.41 of 2012 were then filed before the High Court at Guwahati by the parties. While Criminal Appeal No.10 of 2012 was filed by the Complainant/Appellant, Criminal Revision No.41 of 2012 challenged the conviction of the Respondent by the trial court and affirmed by the Appellate Court for an offence under Section 138 of the Negotiable Instruments Act, 1881. The High Court has, as seen earlier, set aside the conviction of the Respondent and allowed Criminal Revision No.41 of 2012 while dismissing Criminal Appeal No.10 of 2012 in terms of the judgment and order impugned in the present appeals. 8. We have heard learned counsel for the parties at some length who have taken us through the orders pas....
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.... made on the Promissory Note acknowledging that the cheques handed over to the Complainant/Appellant herein were actually issued by him and agreeing that the same may be presented for payment after 25th September, 2007. The endorsement was in the following manner: "The above cheques are issued by me to Nazimul Islam to deliver to Mr. Don Ayengia the cheques are already been bounce. Now, we have requested Mr. Dona Ayengia to represent the cheques after 25.09.2007 to contact me. 15.09.2007 (H.Mudoi)" 10. It is not in dispute that the execution of the Promissory Note and the endorsement made by the Respondent has been satisfactorily proved at the trial. Concurrent findings recorded by the trial court and the first appellat....
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....st dated, only to give to the drawer the specified one month's time to pay the amount. There is thus a direct relationship between the liability and the cheques issued in connection therewith. Thus far there is no difficulty. The difficulty arises only because the promissory note uses the words "security" qua the cheques. This would ordinarily and in the context in which the cheques were given imply that once the amount of rupees ten lakhs was paid, the cheques shall have to be returned. There would be no reason for their retention by the complainant or for their presentation. In case, however, the amount was not paid within the period stipulated, the cheques were liable to be presented for otherwise there was no logic or reason for their h....