TaxTMI 
TaxTMI 
2024 (10) TMI 1770
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....e offence punishable under Section 138 read with 142 of the Negotiable Instruments Act, 1881 [for short 'N.I. Act']. 2. The facts which led to the filing of this petition, in brief, are as follows: a) On 20.11.2018, Petitioner/Accused borrowed a sum of Rs. 25,00,000/- from Respondent No.2/Complainant for her family and other expenses and executed a promissory note in his favour on the same day agreeing to repay the same with interest @ 24% per annum. b) On repeated demands of the Complainant, the Accused issued a cheque bearing No.032824, dated 20.09.2021 for Rs.42,00,000/- drawn on State Bank of Hyderabad, Mahabubabad branch, Warangal District and on presentation for collection in ICICI Bank, Vijayawada, the said chequ....
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....l would further submit that the ingredients of Section 138 of NI Act do not attract to the present case. In support of his contention, learned counsel has placed reliance on the judgment of High Court of Delhi in Premanand Prusty v. Sita Devi [2023 SCC OnLine Del 7745] and Allahabad High Court in Archana Singh Gautam v. State of U.P. and another [Application No.9536 of 2024, dated 05.06.2024]. 5. Now the point that would emerge for determination is: Whether there are any justifiable grounds for quashment of the proceedings against the Petitioner/Accused in C.C.No.911 of 2022 on the file of the Court of II Additional Metropolitan Magistrate, Vijayawada, for the offence punishable under Section 138 read with 142 of Negotiable Inst....
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.... etc., of funds in the account .- Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may be extended to two years', or with fine which may extend ....
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....Singh Vs. Smt. Archana Singh Gautam and others), under section 138 N.I. Act, pending in the Court of Learned Special Judicial Magistrate-II, Banda, is hereby quashed." 11. Admittedly, in the instant case, the subject cheque was issued on 20.09.2021 and the same was drawn on State Bank of Hyderabad. By that date, State Bank of Hyderabad was merged with State Bank of India and the cheques of the said bank were valid till 31.03.2018 only. As per the proviso (a) of Section 138 of N.I. Act, if the cheque itself is invalid, the Bank is bound to dishonour the same. As such, on presentation of the said cheque before ICICI Bank, the same was returned on 22.09.2021 with an endorsement "Invalid cheque (SBH)". Therefore, it can be presumed that the ....