2015 (2) TMI 1387

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....ourt quashed the complaint filed by the Appellant under Section 138 of the Negotiable Instruments Act as against the Respondents. 2. To trace the brief facts, the Appellant claimed that it entered into an agreement of sale on 4.3.2003 with M/s. A.D. Exports Private Limited for the sale of an undescribed property at Hansi, District Hisar in the State of Haryana for Rs. 74,86,000/- against which the said M/s. A.D. Exports Private Limited agreed to pay earnest money of Rs. 44,86,000/- and gave a pay order drawn on first Respondent Bank. The pay order was presented on 5.3.2003 and it was returned on 12.3.2003 with the endorsement "refer to drawer, account attached". The complaint under Section 138 of the Negotiable Instruments Act came to be f....

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....ry basis on which the pay order was secured by M/s. A.D. Exports Private Limited and issued to the Appellant, inasmuch as the Appellant did not come forward with the full description of the property with reference to which the agreement was stated to have been reached on 4.3.2003 for a huge sale consideration of Rs. 74,86,000/-, for which pay order for the value of Rs. 44,86,000/- was handed over on condition of delivery of the document of title and possession. Learned senior counsel further contended that de hors the said serious doubt as regards the genuineness of the very transaction as between the Appellant and M/s. A.D. Exports Private Limited, the other question which looms large before this Court is as to the very applicability of Se....

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.... Section 5 of the Negotiable Instruments Act. However, when we read the said judgment in detail, we were not able to discern any definite principle laid down therein as to how far Section 138 of the Negotiable Instruments Act can be applied with reference to a 'Bill of Exchange' as against 'cheque'. Section 138 has been set out in detail by making specific reference to the 'drawer' of the 'cheque' by a person on an 'account' maintained by him for payment of any amount of money from out of 'that account' for the discharge of any debt or other liability because of non-availability of that amount of money standing to the credit of 'that account' was insufficient or it exceeded the amount ....