AI Drafter 
TaxTMI 
TaxTMI 
2018 (9) TMI 928
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....15,896/- in respect of the Defendant No.2 and a sum of Rs. 1,67,72,614/- in respect of the Defendant No.1. Cheques were issued by the Defendants, which were dishonoured. A complaint under Section 138 of the Negotiable Instruments Act, 1881 was filed. Settlement Agreement dated 20th August, 2014 was entered into after the filing of the said complaints. As per the said Settlement Agreement, the Defendant Nos.1 & 2 together agreed to pay a total sum of Rs. 5,29,88,515/-. The schedule for payment of the said amount was recorded as under: "Installment Amount to be paid Payment Schedule 15,00,000/- Within Two Weeks of recording the settlement by the Hon'ble Court Ist Installment 1,71,62,838.00 Within 3 months from the date of recording the settlement by the Hon'ble Court IInd Installment 1,71,62,838.00 4^th to 6^th months from the date of recording the settlement by the Hon'ble Court IIIrd Installment 1,71,62,838.00 7^th to 9^th months from the date of recording the settlement by the Hon'ble Court Total 5,29,88,515.00 Final Payment If due to default, any amount is unpaid, the said amount shall be paid w....
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....evidence has been led before the Magistrate at the pre-summoning stage, either by affidavit or by oral statement, the Complaint will be maintainable only at the place where the cheque stands dishonoured. To obviate and eradicate any legal complications, the category of Complaint cases where proceedings have gone to the stage of Section 145(2) or beyond shall be deemed to have been transferred by us from the Court ordinarily possessing territorial jurisdiction, as now clarified, to the Court where it is presently pending. All other complaints (obviously including those where the accused/respondent has not been properly served) shall be returned to the Complainant for filing in the proper court, in consonance with our exposition of the law. If such Complaints are filed/refiled within thirty days of their return, they shall be deemed to have been filed within the time prescribed by law, unless the Initial or prior filing was itself time barred.". Accordingly the present complaint is returned in original to the complainant to file the same before the appropriate court. Documents be returned in original after taking certified copy of the same and thereafter file be consigned to recor....
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.... liable to be paid by them along with the interest. 8. The Defendants, on the other hand, submit that reading of the agreement clearly shows that the payments of instalments commences only after the Settlement Agreement is taken on record which did not happen. Thus, the Defendants cannot be blamed for the Plaintiff's mistake of not refiling the complaint in the Court of competent jurisdiction. 9. During the course of oral arguments, as also the pleadings, the Defendants do not challenge the authenticity, existence and validity of the Settlement Agreement. It is clear that in the Section 138 complaint, the Defendants settled the disputes with the Plaintiff by executing the Settlement Agreement dated 20th August, 2014. The agreement is duly signed by all the parties and no challenge has been laid to the same. The Settlement Agreement was not just merely executed between the parties but was even filed on the court record. A perusal of the order dated 21st August, 2014 passed by the learned Metropolitan Magistrate (NI Act) clearly shows that the Court took the Settlement Deed on record. It was only due to the judgment of the Supreme Court passed, which came to be passed on 1st Au....
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....iram case [Milkhiram (India) (P) Ltd. v. Chamanlal Bros., AIR 1965 SC 1698 : (1966) 68 Bom LR 36], as follows: 17.1. If the defendant satisfies the court that he has a substantial defence, that is, a defence that is likely to succeed, the plaintiff is not entitled to leave to sign judgment, and the defendant is entitled to unconditional leave to defend the suit. 17.2. If the defendant raises triable issues indicating that he has a fair or reasonable defence, although not a positively good defence, the plaintiff is not entitled to sign judgment, and the defendant is ordinarily entitled to unconditional leave to defend. 17.3. Even if the defendant raises triable issues, if a doubt is left with the trial Judge about the defendant's good faith, or the genuineness of the triable issues, the trial Judge may impose conditions both as to time or mode of trial, as well as payment into court or furnishing security. Care must be taken to see that the object of the provisions to assist expeditious disposal of commercial causes is not defeated. Care must also be taken to see that such triable issues are not shut out by unduly severe orders as to deposit or security. 17.4. If the....