TaxTMI 
TaxTMI 
2016 (7) TMI 1627
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.... Rs. 42,600/- to respondent no.2, to enable him to purchase a motorcycle. Loan-cum-hypothecation agreement dated 16th March, 2005 was executed between the petitioner and respondent no. 2. As per the agreement, respondent no. 2 was to pay Rs. 57,000/- in 30 instalments. First instalment was payable on 15th April, 2005. Petitioner alleged that respondent no. 2 did not adhere to financial discipline resulting in accumulation of outstanding dues. On persuasion of petitioner the respondent no. 2 issued a cheque bearing no. 045159 dated 17th February, 2009 for Rs. 30,650/- drawn on Indian Overseas Bank, Naraina, New Delhi to discharge his part liability. However, on presentation the cheque was returned unpaid vide banker's memo dated 19th Feb....
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..... and Ors. Vs. Vinay Mittal, MANU/DE/0031/2010 and Angu Parameswari Textiles (P) Ltd. and Ors. Vs. Sri Rajam & Co., MANU/TN/0662/2001 to conclude that if cheque amount is much more than liability, section 138 of the Act is not attracted. In Alliance Infrastructure (supra), it has been held as under:- "8. The question which comes up for consideration is as to what the expression "amount of money" means in a case where the admitted liability of the drawer of the cheque gets reduced, on account of part payment made by him, after issuing but before presentation of cheque in question. No doubt, the expression "amount of money" would mean the amount of the cheque alone in case the amount payable by the drawer, on the date of presentation ....
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....he banker of the drawer, for encashment and in case such a cheque is dishonoured for wants of funds, he will be guilty of offence punishable under Section 138 of Negotiable Instrument Act." 5. In Angu Parameswari Textiles (supra), it has been held thus:- "4. Section 138 of the Negotiable Instruments Act reads that where any cheque was drawn for payment of any amount of money for the discharge in whole or any part of any debt or other liability and the same is dishonoured by the Bank, the person who drew the cheque shall be punishable. Therefore, the cheque drawn should be towards the discharge of either the whole debt or part of the debt. If the cheque is more than the amount of the debt due, I am afraid, Section 138 cannot be attracted.....