2018 (2) TMI 2022

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....iable Instruments Act, 1881 (hereinafter referred to as 'the NI Act', for brevity). The same is questioned in this appeal urging various grounds. 2. The factual matrix of the appeal are as under: The complainant - Bank had filed a complaint under Section 200 Cr.P.C. against the accused alleging that the accused had issued a cheque bearing No.0454037 dated 4.12.2004 for a sum of Rs. 60,200/- for a lawful consideration received from the Bank. However, when the said cheque was presented for collection, that the same was returned with an endorsement 'insufficient funds' in the account. Since the cheque issued by the accused was dishonoured, the complainant - Bank had issued a notice on 20.12.2004. However, in spite of service of notice, t....

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....or the respondent. 4. The learned counsel for the appellant contends that the court below had committed an error in holding that there was no liability existing at the time of issuing the cheque. Exhibit P-1 the blank cheque was given as security by the accused as a debtor while availing loan from the complainant - Bank, authorizing the Bank to use the cheque to make good the repayment of loan, on default on his part. He submits that the concept of non-existence of cash transaction at the time of issuance of cheque, was an erroneous finding by the Trial Court. Further, if the cheque issued as security to the loan transaction cannot be used towards collection of the debt due from the debtor, the purpose of taking a blank cheque as securit....

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....and the expression "for discharge of any debt or other liability" occurring in Section 138 of the Act. We are of the view that the question whether a post-dated cheque is for "discharge of debt or liability" depends on the nature of the transaction. If on the date of the cheque liability or debt exists or the amount has become legally recoverable, the Section is attracted and not otherwise." Hence, on all these grounds, the learned counsel for the appellant prays to set aside the judgment of the Trial Court acquitting the accused and to thereby convict the accused for the offence punishable under Section 138 of the NI Act. 5. On the other hand, the learned counsel for the respondent seeks to justify the impugned judgment passed by the....