1993 (10) TMI 365

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....  The respondent has purchased 100 bags of rice on August 10, 1992, from the petitioner as per credit bill No. 69 for Rs. 60,540 and has taken delivery of the said 100 bags of rice. The respondent issued a cheque on Canara Bank, Nazarath, dated September 22, 1992, for a sum of Rs. 30,540 in favour of the petitioner towards the part payment of the abovesaid credit bill. When the petitioner presented the said cheque on September 22, 1992, through his bank, namely, State Bank of India, Vadiveeswaram Branch, Nagercoil, for collection, it was returned on October 22, 1992, with an endorsement "funds insufficient". The respondent knowing fully well that he did not have enough funds in his bank account issued the cheque, with an intentio....

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....earing for the petitioner, would submit that in paragraph 6 of the complaint, it is stated that the petitioner's father had given a settlement letter dated November 27, 1992, to pay the cheque amount of Rs. 30,450 but had not paid that amount and as the amount due under the cheque has been novated by the settlement letter dated November 27, 1992, the only course open to the respondent to proceed against him in a civil court and no complaint would lie. I am unable to accept this submission for the following reasons : According to the complaint, the cheque issued by the petitioner to the respondent-complainant, was with him, but the father had executed a settlement letter agreeing to settle the claim on December 11, 1992. But the responde....

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.... on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to twice the amount of the cheque, or with both : Provided that nothing cont....