TaxTMI 
TaxTMI 
2022 (11) TMI 788
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....ccused in the complaint lodged by the respondent for the offence punishable under Section 138 of Negotiable Instruments Act. The crux of the complaint is that on 08.10.2002, the petitioners borrowed a sum of Rs.15,00,000/- to develop the export business. As requested by the petitioners, the respondent had lend a loan by way of two cheques dated 08.10.2002 of a sum of Rs.10,00,000/- and Rs.50,000/- drawn on ABN-AMRO Bank. It was duly en-cashed by the petitioners, who promised to repay the said loan with interest at the rate of 15%. They also executed two promissory notes in favour of the respondent herein. However, the petitioners failed to return the amount and as such the respondent caused notice on 15.09.2003. After repeated request by th....
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....older and as such the complaint is not maintainable as against him, to punish him for the offence under Section 138 of Negotiable Instruments Act. The cheques were returned dishonoured for the reason that the account was attached by the Provident Fund Commissioner. To attract the offence under Section 138 of Negotiable Instruments Act, the cheques should have been returned for insufficient funds or improper arrangement. Therefore, the endorsement of the account which is attached would not attract the offence under Section 138 of Negotiable Instruments Act. 5. A perusal of records revealed that the first petitioner is a Proprietrix of Arpan Exports. The second petitioner is the Mandate Holder of the said Arpan Exports. The second petitioner....
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....m the date on which it is drawn or within the period of its validity, whichever is earlier; (b) the payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice; in writing, to the drawer of the cheque, 9 [within thirty days] of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and (c) the drawer of such cheque fails to make the payment of the said amount of money to the payee or, as the case may be, to the holder in due course of the cheque, within fifteen days of the receipt of the said notice. Explanation.-For the purposes of this section, "debt of other liability" means a legally enforceable debt or ....