AI Drafter 
TaxTMI 
TaxTMI 
2026 (4) TMI 669
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.... second accused had executed necessary documents in favour of the first respondent for availing loan. It was further alleged that at the time of borrowing loan amount, the fourth accused told the first respondent that both Vendhar TV and Vendhar Movies are one and the same. Believing the said words, the first respondent had lent a sum of Rs. 7,50,00,000/- in favour of the accused. The first accused with the consent and knowledge of the fourth accused had entered into an agreement dated 11.01.2016. However, after repeated requests and demands made by the first respondent for repayment of the loan amount, the second accused by the communication dated 20.04.2016, had transferred some portion of the amount. Insofar as the remaining amount is concerned, the fourth accused directed the second accused to issue post dated cheques. Accordingly, cheques were issued for a sum of Rs. 1,00,00,000/- and 1,60,00,000/- dated 28.11.2016 towards the discharge of partial liability out of the total liability. Both the cheques were presented for collection and the same were returned dishonoured for the reason 'instrument out dated stale'. After causing statutory notice, the first respondent lodged comp....
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....ngly, the second respondent herein filed petitions in Crl.MP.No.2468 of 2025 & Crl.MP.No.15389 of 2025 to recall the order passed by this Court dated 02.11.2023 in Crl.OP.Nos.10081 & 19372 of 2017. Both the petitions were allowed and the legal heir of the first respondent was permitted to represent on behalf of the first respondent herein. The legal heir of the first respondent by name Gagan Bothra, who is none other than the son of the first respondent, submits that the cheque was presented within a period of three months from the date of issuance of cheque. Unfortunately, the banker returned the cheque for the reason 'instrument out dated / stale'. Therefore, it can be established before the trial court by letting in evidence whether on the date of the presentation of the cheque, the cheque amount was available or not. Hence, the petitioners are liable to be punished for the offence punishable under Section 138 of NI Act. Therefore, the impugned proceedings cannot be quashed on its threshold. In support of his contention, he relied upon the judgment of the Hon'ble Supreme Court of India in the case of Rameshchandra Ambalal Joshi Vs. The State of Gujarat and another rendered i....
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.... the next succeeding month, the period expires at the end of the latter month." Drawing a conclusion from the above mentioned authorities, we are of the opinion that the use of word "from" in Section 138(a) requires exclusion of the first day on which the cheque was drawn and inclusion of the last day within which such act needs to be done. In other words, six months would expire one day prior to the date in the corresponding month and in case no such day falls, the last day of the immediate previous month. Hence, for all purposes, the date on which the cheque was drawn, i.e., 31.12.2005 will be excluded and the period of six months will be reckoned from the next day i.e. from 1.1.2006; meaning thereby that according to the British calendar, the period of six months will expire at the end of the 30th day of June, 2006. Since the cheque was presented on 30.6.2006, we are of the view that it was presented within the period prescribed. Viewed from any angle, the prosecution is not time barred and therefore, cannot be scuttled at this stage on this ground. As the matter is pending since long, the learned Magistrate in seisin of the trial shall make endeavour to conclu....
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....eral Clauses Act to mean a month reckoned according to the British calendar. Accordingly, this Court is of the opinion that the period of three months cannot be calculated on 30 days in a month basis. The use of the word "three months" requires exclusion of the first day on which the cheque was drawn and the period ends on the corresponding date in the third month. Therefore the date on which the cheques were drawn i.e. 28.11.2016 will be excluded and the period of three months will be reckoned from the next day i.e. from 29.11.2016 and the period of three months will expire on 28.02.2017. Therefore, the cheques were presented within the period prescribed under Section 138 of NI Act. However, the banker of the petitioners returned the cheques for the reason 'instrument out dated stale'. Therefore, the first point is answered in favour of the petitioners. 9. For return of the cheques, the petitioners are in no way responsible and the banker is only responsible for return of the cheques. Though the cheques were presented within the prescribed period under the Act, both the cheques were returned for the reason 'instrument out dated stale' which means the cheques were presented afte....
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....t. Our client denies having borrowed any amount directly or through anybody since there was no need or necessity to borrow the amount from your client and as such the entire averment against our client is nothing but false and our client stoutly denies it. 3. Further our client is not concerned with the cheque issued by somebody else. Our client reiterates that he has not borrowed any amount for himself or for anybody else and as such there is no legally enforceable debt at all and your client is put to strict proof thereof. 4.. Our client further states that he is neither a borrower nor a signatory to the cheque and is in no way connected with "VENDAR MOVIES", or the cheque bearing No 223838 and 223839 dt. 28-11-2016 for the sum of Rs. 1,00,00,000/-(One Crore) and another for Rs. 1,60,00,000/ drawn on Axis Bank Ltd, Virugambakkam Branch, Chennai -92.Our client states that he was never in need to approach your client for any loan and he does not even know your client.. 5. Our client states that your client had earlier sent a legal notice dated 28-06-2016 to our client in respect of a cheque dated 13.06.2016 bearing No: 223836 drawn on M/s. Axis Bank Ltd.,....