Negotiable Instrument Act-138-Allahabad District Court-Users Guide

8/13/2019 Negotiable Instrument Act-138-Allahabad District Court-Users Guide

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INTRODUCTION

With the kind blessings of the Almighty above and great

motivation of Hon'ble Mr. Justice Prakash Krishna, ri !handra "hal

rivastava, #istrict Judge, Allahabad and all Judicial $fficers of the

Allahabad Judgeshi%, a small effort in the field of the &egotiable nstruments

Act has been made to collect and com%ile im%ortant cases of Hon'ble

u%reme !ourt and various High !ourts on the sub(ect.

ections )*+ to )-, !ha%ter /, 0as inserted in the

&egotiable nstruments Act, )++) by an Amending Act, Act 11 of )2++.

3hese sections came into force 0.e.f. -2.*.)2+2. 3hese sections %rovide for

s%eedy dis%osal of cases relating to dishonoured che4ues. "y the

incor%oration of these %rovisions in the &egotiable nstruments Act, dealing

by 0ay of che4ues in ndia has gained confidence amongst the businessmen

community.

3hese %rovisions deals 0ith %rocedure, trial, cogni5ance, defence

and %unishment relating to offences of dishonour of che4ues.

#ishonour of a che4ue is by it self not an offence u6s )*+ of

&egotiable nstruments Act. 3o come 0ithin the ambit of offence in such a

case follo0ing elements have to be fulfilled 7

). #ra0ing the che4ue.

-. Presentation of the che4ue to the "ank.

*. 8eturning the che4ue un%aid by the dra0ee "ank.

. 9iving notice in 0riting to the dra0er of the che4ue demanding %ayment

of the che4ue amount.

:. ;ailure of the dra0er to make %ayment 0ithin ): days of the recei%t of

notice.

3he offence of dishonour of che4ue has been made cogni5able

only on a 0ritten com%laint by the %ayee or holder in due course.

ections )*+ to )< of &egotiable nstruments Act as inserted by

the Amendment Act -==-, further lay do0n a kind of com%lete !ode for trial

of offences under the &egotiable nstruments Act.


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3hus, if the %rovision of &egotiable nstruments Act s%ecially

sections )*+ to )< are follo0ed strictly by the !ourts, a large number of

such cases 0ill reach their final fate 0ithin a fair and reasonable time. 3hese%rovisions have been incor%orated 0ith a vie0 to encourage the culture of

use of che4ues and enhancing credibility of the nstrument.

We have made every sincere attem%t in com%iling the case la0

relating to &egotiable nstruments Act and %rinci%les laid therein. We are

also e>tremely grateful for the guidance given to us by our res%ected

#istrict Judge.

We crave the indulgence of readers for any mistake that might

have inadvertently cre%t in s%ite of our best effort to avoid them.

#ate 7 1.:.-=)=. SMT. CHHAYA NAIN,A.C.J.M.,ALLAHABAD.

VIKASH KUMAR,

J.M., ALLAHABAD.


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Last moments addition:

DISHONOUR OF CHEQUES,

NOW, PAY MORE FOR DELAY

A "ench com%rising !hief Justice K.9. "al Krishnan and

Justice P. athasivam and J. M. Panchal during the hearing the section

)*+ case bet0een #amodar . Prabhu and aiyad "aba ?al on Monday

dated :, May -=)= took this radical ste% through a %ioneering (udgment

0hich aims to curb the tendency amongst defaulters to sit over the

amount tendered through a bounced che4ue, laid do0n guidelines for

early settlement in che4ues dishonour of che4ues u6s &..Act. 3he

%enalty for delay settlement of the che4ues amount, after conviction in

the trial !ourt 0ould rise steadily from )=@ in #istrict !ourt, ):@ in

High !ourts to a 0ho%%ing -=@ in the u%reme !ourt.

3he "ench observed that there had been an enormous rush of

cases after che4ue bounce 0as made a %enal offence in )2+2, follo0ed

by the amendment in -==- %roviding for summary trial for early

resolution of the dis%ute. n most cases, the !ourts s%ent a lot of time

issuing notices and summoning the accused, and 0hen the time comes to

deliver the verdict, the %arties reach a com%romise and seek

com%ounding of offences, the "ench said.

"y !ourtesy

The Times ! I"#i$ %

We#"es#$&, M$&, ', ()*).


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Topic Index

Chapters Page Nos.

1. Condonation of delay :- 4 - 7

(Sec. 1!" 14# N.I. $ct%

When can be condoned - 4,5

When cannot be condoned - 6,7

#.Notice (de&and notice%: ! - 1#

(Sec. 1! N.I. $ct%

When served - 8, 9,10

When not served - 11, 12

. 'idence on $ffidait: 1 -1)

(Sec. 14) N.I.$ct%

Affidavit for u/s 200 Cr!C - 1"

Affidavit for e#a$ination in chief - 14, 15

4. Co&po*nding of offence 1+ - 1,

When co$%ounded &'ec147 ()Act*- 16, 17, 18

When Can not be co$%ounded - 19

). P*nish&ent # - #7

(Sec. 1!" 14 N.I. $ct%

A%%ea+ aainst acuitta+ - 20

'uitab+e sentence - 21 - 24

.ode of recover of fine fro$ accused - 25

e+ease of accused on %robation - 26

eath of accused as revisionist in a%%ea+ - 27

+. Proced*re: #! -

Sec. 14 N.I.$ct.

'u$$ari+ ria+


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Account c+osed/'to% %a$ent - 64

'inature of Co$%+ainant

for #%ert %inion - 65

Cuttin on Cheue - 66

ndorse$ent on Cheue 3ithout

no3+ede of co$%+ainant 67

is%uted 'inature 68

oss of Cheue 69

eath of %erson issuin cheue 70

Co$%+aint fi+ed b !rivate !art,

for fa+se co$%+aint so cause

notice to co$%+ainant is i++ea+ 71

Co$%+ainant a+read taen

recourse Arbitration- 72

'ec 155 Cr!C not $aintainab+e - 7"

A+teration of dates on Cheue - 74

ifference in a$ounts $entioned

in 3ords and fiures on Cheue - 75

Who can fi+e Co$%+aints 76

ouncin of Cheue is an

individua+ +iabi+it - 77


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4

Chapter -1. Condonation of elay

8i&itation:

9hen can 5e Condoned:

1 ate of recei%t of infor$ation fro$ an is e#c+uded to count the

%eriod of thirt das

2008 Cri 1246

Case referred : &2006* 9 'CC "40

; &2005* 4 'CC 417

2 1" as de+a in fi+in co$%+aint su%%orted b affidavit, s

#i$ Aides 'i+ #%orters

5 urden +ies on the co$%+ainant to satisf b sufficient cause to

condone the e#tensive %eriod for fi+in a co$%+aint


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2008Cri &(C* 947 ?A=

6 A%%+ication for reca++in order is %endin before the 'essions CourtA$ended %rovision to condone de+a in fi+in co$%+aint 3ou+d be

a%%+icab+e 3hen case 3as sti++ %endin

2006 Cri 19"

Case referred :

A) 1999 'C 1090

A) 1981 'C 1106

7 ate $entioned b ban about dishonour of cheue is to be e#c+udedfor countin %eriod of +i$itation

2009 Cri 14"4

Case referred

1999 Cri 1822

A) 1972 'C 129"

8 !aee has riht to sent cheue to ban in nu$ber of ti$es he %+eases

durin %eriod of its va+idit i$itation %eriod start to run fro$ date of

+ast dishonour

2009 Cri 154

Case referred:

1995 Cri 1"84 &@era+a* &*

A) 1998 'C "04" 'C

2000 Cri 2921 A++


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9hen can not 5e condoned

1 " as de+a in fi+in co$%+aint canBt be considered 3ithout notice toaccused

2007 Cri 482

2 Acuitta+ of accused on basis of +a3 then in force %ro%er-canBt be set

aside 3hen co$%+ainant has not stated a satisfactor reason for

condonin de+a

2005 Cri 1644

Case eferred :A) 200" 'C 24"4

'hiv 'hati Coo%erative


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Case referred :

A) 2008 'C 80998 ne $onth %eriod of +i$itation straiht fro$ date of service of notice

- (ot %ro%er Co$%+aint 3as barred b +i$itation

2007 Cri "854

9 Co$%+aint not fi+ed on basis of notice 3ithin "0 das, after 15 das of

service of notice - Co$%+aint ti$e barred

2008 Cri 2172

Case referred

A) 2005 'C 4284

A) 2001 'C ""72 'C

A) 2000 'C 2946


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Chapter - #. e&and Notice -Sec. 1! N.I. $ct

(otice 3hen served :

1 (otice to be read as a 3ho+e )n notice no cheue a$ount de$and is

$ade it 3ou+d fa++ of its +ea+ reuire$ent

2008 Cri 452 'C

Case referred :

A) 200" 'C 4689

A) 2000 'C 828

2 ndorse$ent b %ost$an that refusa+ b the a%%+icant - %resu$ed that

notice 3as sufficient+ served

2005 Cri "0"5

Case referred:

2005 Cri 127

A) 2005 'C 109" n+ bounced cheue a$ount 3as $ade in de$and notice, no other

a$ount or +iabi+it 3as inc+uded is +ea++ va+id notice

2008 Cri&(C* 950

4 Cheue a$ount of s 50,000/- notice iven for one +ac co$%+aint has

correct+ $entioned in his co$%+aint the a$ount of this cheue and

further sho3n in his affidavit in his e#a$ination in chief 'aid

discre%anc as to a$ount of the cheue in notice does not disentit+e the

co$%+aint

2009 Cri 1228

Case referred

A) 2008 'C 1"25

&2008* 1 'CC 258

5 -$ai+ sent b co$%+ainant to accused infor$in hi$ about

dishonour of cheue e$and notice - no for$at is %rescribed- 3ou+dua+if to be notice conte$%+ated u/s 1"8 () Act

2009 Cri "804

6 '%ecifin %eriod of 8 as shorter than 15 das for $ain %a$ent

cannot be he+d to be i++ea+ 3hi+e %rovision of 'ec 1"8, no3here

%rovides that notice shou+d %rescribed %eriod of 15 das for $ain

%a$ent

2010 Cri 1019


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Case referred

2008 Cri 4521999 Cri 2010 .adras

7 )f an %eriod or no %eriod is $entioned in notice as %rescribed in

section 1"8 %roviso &C* notice sha++ not be inva+id on that account

2009 Cri 154

Case referred :

1999 Cri 2010 .adras

1998 Cri "27" &! E


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2004 Cri 4874

11 'ervice of notice - is sine ua non for +aunchin %rosecution-Cheue 3as issued on beha+f of co$%an- (oticie oint+ addressed

and sent to .ananin irecter of the co$%an, to the co$%an and to

the fir$ in one enve+o%- 3as returned b %ost$an as refused - Wou+d be

dee$ed to be du+ served- efusa+ to acce%t is a+3as considered as

ood service - !resu$%tion of service of notice cannot be rebutted b

accused .anain irected b $ere denia+ in his state$ent u/s "1"

Cr!C

2008Cri "770


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Notice hen not sered :

1 Acno3+ede$ent of notice 3hen not received b co$%+ainant andactua+ date of service of notice cou+d not $entioned in co$%+aint

Co$%+aint is not $aintainab+e

2009 Cri 154

2 i+in co$%+aint on basis of subseuent dishonour and conseuent

notice 3ithout even referrin to ear+ier dishonour and conseuent notice

not %er$issib+e

2009 Cri "207

Case referred:

2009 A) 'CW 1044

A) 1998 'C "04"

" 'ervice of notice cou+d not be found to be not va+id $ere+ because of

endorse$ent of %osta+ %eon- $oreso, 3hen %osta+ %eon 3as not at a++

e#a$ined Fuashin on round that notice 3as not served on the$ -

+iab+e to be set aside

2009 Cri "26

Case referred

A) 2005 'C 109

A) 1999 'C "762

4 (otice to dra3er of cheue $andator 'ec 27 ?enera+ C+auses Act

refers %resu$%tion that service of notice has been effected 3hen it is

sent to the correct address b reistered %ost =/s 1"8 !roviso &b* 3asevaded b accused or that accused %+aed ro+e in return or notice

unserved - not necessar in vie3 of %resu$%tion of ?enera+ C+auses Act

2007 Cri "214

Case referred

A) 2006 'C 2179

A) 2005 'C 109

A) 1999 'C "762

&1996* 7 'CC 52"

A) 1992 'C 1604

5 nce notice under reistered %ost and one notice under =!C 3ere

sent b co$%+ainant to accused- notice under reistered %ost had been

returned b %ost$an b endorsin fa+se re%ort 3hi+e notice b =!C 3as

received b hi$ (otice sent b reistered %ost thereb not served u%on


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accused, accused denied service of notice b fi+in affidavit 'a$e not

controverted b fi+in counter affidavit )t 3ou+d be dee$ed that there

3as no sufficient service

2006 Cri ""12

Case referred :

2005 Cri "029 &o++*

&2004* 1 Cri$es 567 &A!*

1995 Cri 560 &A!*

6 !ost dated cheue - return of cheue b an as un%aid - !aeefai+ed to ive notice in 3ritin to co$%an and its officer reuirin the$

to $ae %a$ent 3ithin 15 das fro$ date of recei%t of notice )n

absence of such notice, $ere fact that %ost dated cheue issued b

co$%an 3ere dishonoured b ban 3ou+d not constitute offence u/s

1"8 () Act

2010 Cri 72" Case referred A) 2009 'C 428

A) 2009 'C 2717 A) 2009 'C 2780

7 Cheue issued b accused %etitioner 3as a++eed+ bounced - (otice

issued b co$%+ainant to %etitioner 3as returned 3ith endorse$ent that

he 3as absent for 6 to 7 das - Case of co$%+ainant 3as not that %etition

3as intentiona++ avoidin to receive notice or address iven 3as

fictitious - hus , no notice 3as served u%on %etitioner -.andator

reuire$ent of 'ec 1"8 () Act 3as not fu+fi++ed- Conviction of

accused i$%ro%er

2010Cri 98"Case referred

2006 Cri 2897


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1"

Chapter - . 'idence on affidait Sec. 14) N.I. $ct

$ffidait for */s # Cr.P.C. in co&plaint of N.I. $ct.

1. ecording of eidence at iss*ance of process" 6agistrate can

dispense ith recording of sorn state&ent of co&plainant and his

itness 5y accepting their affidaits .

#4 Cri.8.0. 4)++

Case referred

$I #1 SC ,))

Note :

See text attached in the last.

2 )n a case of dishonour of cheue if .aistrate tae coniDance and

%roceed u/s 200 Cr!C it is an enuir under %rovision of Cr!CCo$%+ainant is entit+ed to fi+e affidavit in su%%ort of his evidence

2005 Cri "827

" .aistrate is dut bound to e#a$ine u%on oath the co$%+ainant and

his 3itness before issuance of %rocess - even thouh so+e$n affir$ation

b co$%+ainant 3as %resent at foot of co$%+aint %rovision of 200

Cr!C 3ou+d a%%+

2007 Cri 2207

Case referred

2006 'C 1796

2007 Cri 5"5

A) 2004 'C 4674

A) 2001 'C 567


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A) 2000 'C """5

A) 1998 'C 1827A) 1994 'C 262"

A) 1990 'C 209

A) 1958 'C 915

Note :

$cc*sed has an a5sol*te right to hae the

co&plainant and any of his itness s*&&oned forcross exa&ination" 5*t cannot as; for exa&ination- in

-chief again.

6/s 6andi Cooperatie


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Chapter - 4. P*nish&ent-9hen Can


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Case referred

2000 &1* 'CC 7625 'ec 1"8, 147 () Act is co$%oundab+e not3ithstandin 3ith fact

that sec "20 Cr!C does not in ter$s a%%+ to sec 1"8 -

- Co$%oundin offence u/s "20 &1* - $ater need be %endin before

Court - %arties can enter into co$%osition even after verdict of ui+t,

conviction and sentence have beco$e fina+ and no %roceedin are

%endin before an Court

2007Cri 1865

Case referred

2006 Cri 1922 &@era+a *

2004 Cri "786

200" Cri 2028

1990 Cri 1599

6 !arties entered into a$icab+e sett+e$ent - Accused %aid a$ount he

had taen as +oan fro$ co$%+ainant - Co$%+ainant 3aivedco$%ensation a$ount i$%osed on accused b tria+ court b acce%tin

a$ount ant rantin recei%t )n vie3 of co$%ro$ise -accused is entit+ed

to be acuitted ?rantin hi$ e#e$%tion surrenderin

2009 Cri 1906

Case referred

2008 &1* A' C) C - 201 &


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and an enforceab+e ebt 3ithin $eanin of sec 1"8 ()Act- Cheue

%aid to3ards contribution return for reason Be#ceeds aree$entB - notice

u/s 1"8 issued to accused- subseuent thereto 3ithin short s%an of ti$e

accused %aid a$ount b 3a of de$and draft and $atter in re+ation to

cheue 3as sett+ed bet3een %arties- %+ea raised 3hether offence stands

co$%ounded - ho+din vie3 of %ecu+iar fact and circu$stances

recordin of acuitta+ is not %ro%er - 'ett+e$ent bet3een %arties can

on+ be recorded

2005 Cri 1080

Case referred2002 Cri 4792

2000 Cri 4671

2000Cri 467"


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P*nish&ent 9hen Cannot


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Chapter -). P*nish&ent -$ppeal against $c3*ittal

1 A%%e++ate Court has fu++ %o3er to re-a%%reciate evidence - but

3ithout co$in to definite conc+usion that findins iven b tria+ Court

are %erverse - )t cannot substitute the findins of tria+ Court b tain a

tota++ different %ers%ective- co$%+aint of dishonour of cheue

-is$issed b tria+ Court for 3ant of %roof of advance$ent of $one b

co$%+ainant -


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P*nish&ent -S*ita5le Sentence

1 ota+ a$ount covered b cheue is invo+ved a$ount of s

"0,000/- -'aid a$ount had not been %aid either durin tria+ or

subseuent+ i$%osition of fine ' 1200/- 3as to $eare - $atter

re$anded to .aistrate to %ass suitab+e sentence

2006 Cri "806

Case referred

A) 2002 'C 681A) 1999 'C "762- .aistrate can a3ard an su$ as

co$%ensation 3ou+d be the reasonab+e a$ount "57&"* Cr!C

&1998* 4 'CC 551

2 Court $a enforce an order to %a co$%ensation b i$%osin a

sentence in defau+t-

2002Cri 100" 'C

)t is o%en to a++ Courts in )ndia to fo++o3 the said course

A) 1988 'C 2127

Case referred

A) 2001 'C 567

" !o3er to i$%ose sentence of fine - 'C is of the o%inion

- 'ub-section &2* of 'ec "57 Cr!C 3ou+d be attracted even 3hen

a%%e++ant 3as directed to %a co$%ensation

- he a%%e++ate ho3ever 3hi+e sus%endin the sentence 3as entit+ed to

%ut the a%%e++ant on ter$s


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2002 Cri "95 &A!*

A) 2001 'C 6595 'entence of fine in cheue dishonour case -fine e#ceedin s

5000/- can be i$%osed b udicia+ .aistarte irst c+ass W

62200"- i$itation sti%u+ated in section 29 &2* of Cr!C stands

obviated b a$ended %rovision of sec 14" () Act

- Co$%ensation - 'entence of fine a+so i$%osed a+on 3ith sentence of

i$%rison$ent - certain su$ of fine , if re+eased, can be directed b the

tria+ Court to be %aid as co$%ensation to co$%+ainant- A%%e++ate Court

3hi+e sus%endin sentence can order accused to de%osit 25G of a$ountinvo+ved in cheue as fine or co$%ensation - ho3ever , no %a$ent

sha++ be $ade to co$%+ainant before decision of a%%ea+

2006 Cri 1554

Case referred

A) 2001 'C 567

6 'entence- Court after considerin evidence on record found

accused ui+t of offence -


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2"

issued b res%ondent %ursuant to co$%ro$ise 3as dishonoured-

res%ondent ad$itted his +iabi+it to e#tent of s 7 +ahs - Cheue had

been issued in dischare of debt- %+ea b accused that he sined cheue

under threat not tenab+e - cu+%abi+it of accused 3as estab+ished

ho3ever there 3as no chare of fraudu+ent action aainst hi$-he a+so

had %robab+e defense as account 3ere et to be sett+ed- in circu$stance,

rant of co$%ensation of s 7 +ahs instead of fine of s 5000/- 3ou+d

be %ro%er

2010 Cri 2951

Case referredA) 2006 'C 1117

A) 2002 'C 2710

A) 2002 'C 2811

9 'entence - Cheue issued b .anain irector of co$%an to its

e$%+oee under industria+ sett+e$ent, 3as dishonoured - e$%+oee 3as

fihtin for his riht since +on and 3as co$%e++ed to initiate cri$ina+

%roceedins - $atter cannot be treated +iht+ - as %a$ent due undercheue 3as $ade subseuent+, accused directed to %a co$%ensation

of s 20,000/- to co$%+ainant

2008Cri "770

Case referred

A) 2007 &(C* 975 o$ba

A)2002'C "014

10 'entence - (o co$%e++in circu$stance avai+ab+e 3hich 3ou+dustif i$%osition of an deterrent substantive sentence of

i$%rison$ent-enienc can sho3n on uestion of sentence - ho3ever

Courts cannot inore %+iht of co$%+ainant 3ho had been co$%e++ed to

fiht three rounds of +ea+ batt+e and to 3ait fro$ 2004 for redressa+ of

his enuine rievances

- Co$%ensation un+ess a$ount is c+ai$ab+e in civi+ suit - direction under

sec "57 &1* or "57 &"* of Cr!C for %a$ent of co$%ensation cannot

be issued

- ntit+e$ent - %aee or ho+der suffers +oss b reason of dishonour of

cheue for 3hich accused has been sentenced- co$%+ainant entit+ed for

co$%ensation

-A3ard for co$%ensation direction can be iven for %a$ent of interest

thereon- +iab+e to %a interest u/s 80 a+so covers a cheue

-irection for %a$ent of interest - fi#ation of rate of interest - Court


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can ascertain +oss 3hich co$%+ainant 3ou+d suffer on account of de+a

in %a$ent and direct a%%ro%riate rate of interest

2007 Cri 2590

Case referred

&2004 * 8 'CC 251

A) 200" @er 21"

&2002* " @er 852

11 Accused had taen +oan of s 85,000/-fro$ co$%+ainant - accused

hi$se+f in re%+ notice ad$itted that he issued b+an cheue b 3a ofsecurit for %ro$%t re%a$ent of su$ of s 85,000/- - accused %+eaded

dischare of +oan of s 85,000/- no evidence in for$ of recei%t or

endorse$ent 3as %roduce b hi$- conviction of accused is %ro%er -

'entence of t3o $onths si$%+e i$%rison$ent 3ou+d $eet end of

ustice

2010Cri 814

Case referred

A) 2009 'C 1518

A) 2008 'C 1"25

12 'entence - a++eation that cheue issued b accused for re%a$ent

of +oan 3as dishonoured - accused, %ett business facin cri$ina+

%rosecution for 7 ears - had %aid heft a$ount of co$%ensation as

%ena+t - as directed b tria+ Court-


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P*nish&ent -6ode of recoery of fine fro& acc*sed

1 'ec 1"8 ()Act 'ec 421, "57 Cr!C-'entence - .ode of recover

of fine fro$ accused - efau+t sentence a3arded - accused fai+in to

%a %ortion of fine is +iab+e to undero defau+t sentence- A$ount +iab+e

to be %aid to co$%+ainant as co$%ensation cannot be 3ithhe+d- recover

of co$%ensation %aab+e to co$%+ainant ets %recedent over recover of

fine to be credited to overn$ent

2006Cri 185"

Case referred

A) 2002 'C 681

A) 1988 'C 2127


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P*nish&ent- elease of acc*sed on pro5ation

1 !robation of offenders Act 'ection 4 &1* 'ec 6 &2* re+ease of

accused on %robation - consideration of re%ort of re%ort of !robation

fficer as envisaed u/s 62 - is condition %recedent- record sho3in that

no such re%ort 3as ca++ed b .aistrate - to consider 3hether

.aistrate 3as correct +ea++ and factua++ in re+easin accused - suo

$otu %o3er of revision under C!C cou+d be invoed b


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P*nish&ent - eath of acc*sed as reisionist in appeal

1. Sec. ,7. 41. ,4 Cr.P.C. coniction -a%%ea+ aainst - offence of

dishonour of cheue - A%%e++ate Court reduce sentence and a$ount of

fine - revision aainst b accused - urin %endenc of revision

revision, accused died - revision %etition 3ou+d survive death of

accused- court can %ass a%%ro%riate order 3ith reard of sentence of

fine

2006 Cri "864

Case referred

1962 &2* Cri 506


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Chapter-+. Proced*re Sec. #+# -#+) Cr.P.C. > 14 N.I. $ct

S*&&arily Trial :1 !endenc of +are nu$ber of dishonour of cheues, co$%+aints -

ste%s direction iven b 3hich de+a in dis%osa+ of co$%+aints can be

curtai+

- i+in of co$%+aints u/s 1"8 3ith ../A..

-.. verifies the co$%+aints and $ared the sa$e to the concerned

.. / A.. for further %roceedins

- 'tae of issuance or dec+inin to issue the %rocess- ecordin of the state$ent of co$%+ainant and other 3itnesses and

their cross e#a$ination i#in the date of aru$ent of co$%+ainant and

accused

-rders for su$$onin

-A%%earance of accused &bai+*

-


35/83

29

the Code are a%%+icab+e !rovisions of sec 259 reardin 3arrant tria+

have no a%%+ication

2006 Cri1988

Case referred

2004 Cri 664

2002 Cri 4"92

" ishonour of cheue %rocedure case 3as tried as reu+ar su$$on

case thouh it 3as triab+e su$$ari+ u/s 14" () Act .aistrate trin

case and recordin case ceased to e#ercise urisdiction - his successor.aistrate not reuired to ho+d e nova tria+ as conte$%+ated u/s "26

&"* Cr!C Case tried in su$$ar 3a b fo++o3in %rocedure u/s 26"

264 Cr!C are a+one intended to be e#c+uded fro$ %urvie3 of sec "26

&1* Cr!C


36/83

"0

&2005 * 1 @era+a 100"

6 A%%+ication for %roduction of no docu$ent fi+ed b co$%+ainantCo$%+ainant stated in cross e#a$ination that said docu$ent 3ere in

%ossession of accused subseuent+ tain %+ea that it 3as $istaen

state$ent iven b her- (o atte$%ts 3ere $ade to rectif the said

$istaen state$ent A%%+ication +iab+e to be reected )t is 3e++ sett+ed

the function of the cri$ina+ court is ad$inistrative of cri$ina+ ustice

and not to count the errors co$$itted b the %arties to find out and

dec+are 3ho a$onst the %arties %erfor$ed better 'ec "11 Cr!C if it

sha++ be seen fro$ the fact of ever case 3hether the %art a%%+in is

trin to fi++ in +acuna it be so , then the a%%+ication u/s "11 ouht not be

a++o3ed

2009 Cri 44"

7 ria+ %rocedure - 3ord $a used in section 14" () Act +eaves o%tion

for .aistrate to choose 3hether case is to be tried su$$ari+ or as a

su$$on case 'uch o%tion is not o%en for tria+ of cases under %ena+

Code 3hich are tried su$$ari+

2010 Cri 7"0

Case referred

2007 Cri 1;22

1996 Cri 1057 a

A) 1962 'C 690


37/83

"1

Proced*re- S*5stit*ted serice - exparte

Sec. 144" 1! N.I. $ct.

1 'ubstituted service of su$$ons to accused in cri$ina+ tria+

-is %er$issib+e - fact 3hether accused is chared for offence u/s 1"8

() Act or )!C- )$$ateria+'ec 477 Cr!C !resence of accused is a

$ust !resence of accused ho3ever cou+d not be secured for

considerab+e %eriod des%ite sufficient service of su$$ons to hi$- case

aainst said accused can be s%+it u% in ter$s of ru+e -2 of Cri$ina+ u+e

of !ractice &@arnataa * 'ec 144, 1"8 () Act- Accused cannot be

%roceed e#%arte - no e#%arte decision reardin ui+t of accused can be

recordin

2005 Cri"700

Case referred

2004 &4* @CC 2216: ) 2004 @ant 4"81

Proced*re :- 9itho*t serice of s*&&ons arrant arrest and

process of !#-! Cr.P.C. sho*ld not 5e iss*ed

1 rder tain coniDance not interfered 3ith ho3ever 3ithout service

of su$$ons 3arrant of arrest and %rocess u/s 82-8" Cr!C 3as issued -

sa$e is +iab+e to be set aside

Co$%+ainant sent the notice b reistered %ost on correct address

thus as %er section 27 of ?enera+ C+auses Act there is %resu$%tion that

de$and notice had been du+ served u%on the %etitioner

2009 Cri4716


38/83

"2

6ode of Serice of S*&&ons : (2/s 144 N.I. $ct%

1 (ot3ithstandin anthin contained in the Code of Cri$ina+

!rocedure and for the %ur%oses of this Cha%ter,

?$ 6agistrate iss*ing a s*&&on to an acc*sed or a itness &ay

direct a copy of s*&&ons to 5e sered at the place here s*ch

acc*sed or itness ordinary resides or carries on 5*siness or

personally or;s@ for gain 5y speedpost or 5y s*ch co*rier

serices as are approed 5y a Co*rt of Session.?2 Where an acno3+ede$ent %ur%ortin to be sined b the accused

or the 3itness or an endorse$ent %ur%orted to be $ade b an %erson

authoriDed b the %osta+ de%art$ent or the courier services that the

accused or 3itness refused to tae de+iver of su$$ons has been

received, the Court issuin the su$$ons $a dec+are that the su$$ons

has been du+ served

Note : For the service of notice of summons on the accused person,

summons should be send through speed post/ courier and its receiptsshould be attached in the file.

By resorting to the amended provision in this regard, the

greatest hurdle to service of notice of summons on the accused persons

may be removed.

Recently the Supreme Court had an occasion to examine the

provisions of section 1!, 1, 1" # 1$ %.&.

'ct along (ith their provisions in 6/s 6andi Cooperatie


39/83


40/83

"4

Chapter- 7. etrospectie effect/Prospectie effect

1'ec142 () Act is substantive %rovision not retros%ective+

2008 Cri "95"

Case referred

A) 2008 'C 899

2 142 &b* () Act not intended to o%erate retros%ective+

2008Cri 1"86 'C

Case referred

A) 2004 'C 4674

A) 1984 'C 87

" 142 &b* !rovision has co$e into effect durin the %endenc of the

%etition &revision* cou+d e#tend to the %endenc of this %etition

2008 Cri 47"8

Case referred

2006 Cri 19"

4 A%%+ication for reca++in is %endin before 'ession Court- A$ended

%rovision to condone de+a in fi+in co$%+aint 3ou+d be a%%+icab+e

3hen case 3as sti++ %endin

2006Cri 19"

Case referred

A) 1999 'C 1090

A) 1981 'C 1106

5 Co$%+aint fi+ed after e#%ir of one ear %eriod -.aistrate tain

coniDance for condonin de+a in vie3 of a$ended section 142 &b* -

not %ro%er 142 &b* does not have retros%ective effect

1998 Cri 4066

Case referred

2007 Cri 502

&2005* 4 'CC 417

A) 2002 'C 1715

1999 Cri 2276

6 ne de+a in fi+in co$%+aint cannot be condoned b a%%+in 142

a$ended section retros%ective+


41/83


42/83

"6

Chapter - !. 0*risdiction

1 .ost of the act such as dra3in of cheue, %resentation of cheue,

return of cheue b dra3n ban re+ated to %+ace BB but on+ cheue 3as

dra3n at ucno3, co$%+aint fi+ed at %+ace BB - not $aintainab+e

2008Cri 2177

Case referred

2007Cri 115

2005Cri 575

2 Co$%+aint fi+ed before C. at %+ace B@B on 2661991 C. directed

to fi+e co$%+aint before .aistrate at %+ace BB Co$%+aint fi+ed before

.aistrate at %+ace BB on 241996 - initiation of %roceedin on

co$%+aint fi+ed 2661991

2007 Cri 1042

Case referred

1985 Cri "01

" !etition to uash co$%+aint of dishonour of cheue - cheue issued

%ursuant to contract for su%%+ entered 3ithin urisdiction of one


43/83

"7

--rissa state )n absence of an 3ritten aree$ent to %a a$ount at

Ah$adnaar urisdiction cannot be assu$ed to be 3ith said Court

$ere+ because it is stated in de$and notice that %a$ent sha++ be $ade

there -Court at Ah$adnaar has no urisdiction to entertain co$%+aint

2009 Cri "220

Case referred

A) 2009 'C 1168

A) 2009 'C 1"55

2008 &"* A) o$ba 1"22007 Cri 115 &o$b*

A) 2001 'C 1161

erritoria+ urisdiction Co$%+aint not fi+ed in Court in 3hose territoria+

urisdiction cause of action arose

-Co$%+ainant not residin and 3as not 3orin for ain 3ithin

urisdiction of Court Co$%+aint cou+d be returned to be %resented

before %ro%er Court2009 Cri 452

Case referred

2007 Cri 115

A) 1999 'C "762


44/83

"8

Chapter - ,. Cogniance

1 Accused not $ain %a$ent 3ithin 15 das fro$ date of recei%t of

notice, co$%+ainant entit+ed to fi+e co$%+aint 3ithin ne#t $onth fro$

date on 3hich cause of action arose u/s c of !rovisio of 1"8 () Act

2010 Cri 121"

Case referred

2005 Cri 755 A++

A) 2001 'C 2960

A) 1976 'C 1947

A) 196" 'C 14"0

2 ConiDance taen before e#%ir of statutor %eriod of 15 das -

accused did not $ae %a$ent at a++- Conviction cannot be set aside on

round of %re$ature coniDance

2007Cri 2502

Case referred

1999 Cri 288"

" !resentation of co$%+aint before e#%ir of sti%u+ated %eriod - tria+

Court shou+d 3ait and a++o3 co$%+ainant to estab+ish his case or

coniDance shou+d be taen after e#%ir of sti%u+ated %eriod instead of

dis$issin the co$%+aint

2005 Cri "681

Case referred

A) 2004 'C 4674

A) 2000 'C 2946

4 ConiDance had been taen $uch after e#%ir of 15 das of

%rescribed ti$e - order dis$issa+ of co$%+aint on round that it 3as

%re$ature- +iab+e to be set aside

2010Cri 706

Case referred

A) 2000 'C 2946

5 ishonour of t3o cheue oint co$%+aint - here is no +ea+ bar to

oin tria+ of case in res%ect of both dishonoured cheue b $eans of a

sin+e co$%+aint

2009Cri 154


45/83

"9

6 Co$%+aint fi+ed before e#%ir of 15 das fro$ date of service of

notice 3ou+d be %re$ature and coniDance taen 3ou+d be +ea+

2008 Cri 172

7 )n vie3 of the +ea+ %osition it is c+ear that if the co$%+aint is fi+ed

but the .aistrate does not %roceed u/s 200 Cr!C , it cannot be said

that .aistrate has taen coniDance, but if the co$%+aint is fi+ed and

.aistrate %roceed u/s 200 Cr!C and direct to reister the case and

even if fi#es the date for tain evidence u/s 200 Cr!C he tae

coniDance of the offence on the date of the fi+in of the co$%+aint

itse+f2008 Cri 2172

Case referred

A) 2005 'C 4284

A) 2000 'C 2946


46/83

40

Cogniance - S*&&oning of acc*sed on photocopies

1 'u$$onin of accused on basis of %hotoco%ies is not i$%ro%er

2008 Cri &(C* 949


47/83

41

Cogniance on repeated presentation of che3*e

1 i+in co$%+aint on basis of subseuent dishonour and conseuentnotice 3ithout even referrin ear+ier dishonour and conseuent notice -

not %er$issib+e

2009Cri "207

Case referred

2009A) 'CW 1044

A) 1998 'C "04"

2 !aee has riht to sent cheue to ban in nu$ber of ti$es he %+easesdurin %eriod of its va+idit i$itation %eriod start to run fro$ date of

+ast dishonour

2009 Cri 154

Case referred:

1995 Cri 1"84 &@era+a* &*

A) 1998 'C "04"

2000 Cri 292 A++


48/83

42

Cogniance- Co&5ining Ca*se of $ction

1 ishonour of cheue $ore than one cheue - Co$binin cause ofaction for ho+din sin+e tria+- ishonour of the cheue constitute

se%arate offence ivin riht rise to se%arate cause of action subect to

condition that se%arate notices are issued in res%ect of each cheue -

ransaction cannot be he+d to be a sin+e transaction attractin %rovision

of section 219 of Cr!C- 'e%arate tria+ %er$issib+e

-'ection 1"8, 147 () Act 'ection 427 Cr!C - ishonour of cheue-

ifferent tria+s for dishonour of different cheue and i$%osition of

different sentences - irection to run sentences of i$%rison$entconcurrent+ - not ob+iator for Court to direct for subseuent sentence

sha++ run concurrent+ 3ith %revisous sentence refusa+ to ive such

direction - cannot +ead to causin $iscarriae of ustice

2010Cri 844

Case referred

2001Cri 950

1999 Cri 46061977 Cri 992


49/83

4"

Chapter - 1. Co&plaint */s. 141 N.I. $ct

Co&plaint against co&pany

1 ffence b co$%an - co$%+aint - Aver$ent that accused 3as at ti$e

of offence in chare and res%onsib+e for conduct of business of co$%an

- )s essentia+ - irector of Co$%an-(ot dee$s to be vicarious+ +iab+e

$ere+ b virtue of office he ho+d

-.anain irector, oint .anain irector are in chare of andres%onsib+e for conduct of business of co$%an b virtue of office the

ho+d he et covered u/s 141 () Act - 'inator of cheue 3hich is

dishonoured is c+ear+ res%onsib+e for incri$inatin act is covered u/s

141 () Act

2005Cri 4140 'C

Case referred

A) 2004 'C 4274

A) 2005 'C "54

2 ffence b co$%an - ach and ever %erson 3ho has been arraed

as accused on rounds that he is concerned 3ith business and affairs of

co$%an need not be convicted Co$%+aint for dishonour of cheue

fi+ed aainst res%ondent fir$, its .anain %artner and re$ainin

%artner - findin of tria+ Court that .anain %artner of fir$ a+one 3as

res%onsib+e for co$$ission of a++eed offence u/s 1"8 () Act is based

on evidence astenin Cri$ina+ +iabi+it on hi$ a+one - is %er$issib+ein +a3 des%ite the fact re$ainin %artners concerned 3ith affairs of fir$

3ere a+so arraed as accused

2009 Cri 2497

Casereferred

A)2000'C145

A) 1984'C 1824

"'ec 141 () Act is co$%rehensive - cheue issued b fir$ ofundivided hindu fa$i+ - oint fa$i+ business $ust dee$ed as uristic

%erson +ie co$%an or fir$- hence cover u/s 141 () Act er$

association of individua+ 3i++ inc+ude


50/83

44

that of a %artnershi%- here is unit of honourshi% and co$$unit of

interest

2009Cri 67

Case referred

2001 &;104* Co$% Case 290 &'C*

2001 &106* Co$%* Case 489 .adras

4 ffence b Co$%an- euire$ent of 'ec 141 is that %erson souht

to be $ade +iab+e shou+d be inchare of and res%onsiib+e for conduct of

business of co$%an at re+evant ti$e - his has to be averred as a fact

C+ear aver$ents in co$%+aint that accused, irectors of Co$%an are

.anain affairs of Co$%an and are res%onsib+e for act of co$%an

rder issuin aainst the$ cannot be uashed -

- Co$%+ainant not sho3in ho3 the are res%onsib+e for the conduct of

the co$%an nor it has been averred that the offence has been

co$$itted b the$ 3ith their consent or connivance or is attributab+e to

an ne+ect on their %art rder issuin %rocess aainst the$ +iab+e to

be uashed

2009 Cri 104

Case referred

A) 2007 'C 1662

A) 2005 'C "512

5 Co$%anies Act 'ec "4 , !artnershi% Act - !ro%rietar concern is

neither in co$%an incor%orated under Co$%anies Act nor a fir$ 3ithin

$eanin of %rovisions of sec 4 of !artnershi% Act- 'ec 1"8, 141 () Act uashin of co$%+aint - )n co$%+aint a%%e++ant

accused described as business concerned and not as a co$%an or

%artnershi% fir$ or association of %ersons

- Co$%+ainant not statin as to in 3hich ca%acit a%%e++ant had been

servin business concern - !ri$a facie cases of vicarious +iabi+it

aainst a%%e++ant not $ade out-

- rder of


51/83

45

A) 1999 'C 1484

6 ffence b Co$%an - '%ecific aver$ent $ade in co$%an thataccused %ersons 3ere inchare of and contro+ of da to da affairs and

$anae$ent of accused co$%an - '%ecific $ention therein that one

accused 3as Chair$an of co$%an and others 3ere res%onsib+e for

conduct of business of co$%an - Co$%+aint thus $ain out case u/s

141 () Act

-rder uashin %rocess u/s 1"8 () Act and other accused $entioned

therein , %ro%er- )t cannot be said that %rocess 3as issued on+ u/s 1"8

and not under section 141 () Act icarious +iabi+it - cheue of hue a$ount

issued b co$%an in favour of another co$%an - cateorica+

a++eation in co$%+aint that %a$ents 3ere $ade after $eetins he+d b

and bet3een re%resentative of co$%an and accused %erson 3hich

inc+uded res%ondents , Chair$an and . of dra3er co$%an

es%ondent cou+d not %+ead inorance of entire transaction - a++eation

in co$%+aint satisf the inredients of %rovisions of 'ec 141 () Act

!rocess cou+d be issued aainst said res%ondent accused

2007Cri 2442 'C

Case referred

A) 2007 'C 912

A) 2007 'C "512

&2005* 1" 'CC 21"

8 ffence b co$%an - i$%+ead$ent as accused %ersons )t shou+d be

sho3n that accused 3as connected 3ith $anae$ent of fir$ or ho+dan office in said fir$- $ere+ because he 3as son of +ate %artner of

fir$ cannot be round to i$%+ead hi$ as accused

2007Cri 25"8

9 ffence b co$%an - accused %ersons a++eed that there 3as no

$ateria+ to sho3 that at ti$e of offence the 3ere inchare of or

res%onsib+e to co$%an for conduct of business co$%+aint 3ou+d not be

uashed on said round


52/83

46

- 'ec 205 Cr!C - if at an stae tria+ court co$es to conc+usion that

accused %ersons are trin to de+a co$%+etion of tria+, it can refuse

%raer for dis%ensin 3ith %ersona+ attendance

2005Cri 2566 'C

10 ffence b co$%an - %+ea b director that he 3as %reudiced b

$entionin of his na$e as 3as not in chare of affairs of co$%an

!rosecution never intended to %rosecute hi$ in his individua+ ca%acit

(one %rosecution of irectors or irector res%onsib+e for $anae$ent

of affairs of co$%an or inchare of its affairs - )s no bar to %rosecute

co$%an- Co$%an is invariab+ +iab+e %rosecution thouh there is nos%ecific a++eation aainst irector

2005Cri "805

Case referred

A) 2004 'C 4087

A) 2004 'C 4274

A) 2004 'C4711

11 Co$%+aint fi+ed aainst accused co$%an and its director - Windin

u% %roceedin aainst co$%an- Cri$ina+ +iabi+it is enforced on

co$%an and irector of co$%an for their act (o uestion of c+ai$in

an riht our assets of co$%an, after 3indin u% %roceedin 3ere over

- co$%an and its irector cannot shir their cri$ina+ +iabi+it on

round that co$%an 3as a+read 3ound u% and officia+ +iuidator had

taen chare of affairs of co$%an- Co$%anies Act 'ec 446

2005Cri 2289

Case referred

2000CC 7"6 &@er+a+ *

1998 Cri 4095 @era+a

A) 1970 'C 1041

12 Fuashin of %roceedins - ffence b co$%an- Fuashin suit on

round that accused co$%an is sic - %urchase orders 3ere issued after

co$%an 3as dec+ared sic 'uch facts not disc+osed to co$%+ainant-'u%%+ier- Cheue for %a$ent of %rice of $ateria+ su%%+ied - )ssued b

irector of accused co$%an 3ith fu++ no3+ede of fact- Conduct of

accused indicates that riht fro$ ince%tion, accused had no intention of

%ain a$ount for %urchase $ade-


53/83

47

A) 2000 'C 926

A) 2000 'C 9541" rder su$$onin Chair$an and irector of co$%an - Aver$ents

in co$%+aint sho3in that accused 3as Chair$an of co$%an -

Fuestion of his res%onsibi+it for business of co$%an not serious+

cha++ened- C+ear a++eation aainst accused to effect that the 3ere

officers and res%onsib+e for affairs of co$%an- ria+ et to be started

icarious +iabi+it of irector of Co$%an - )t is ob+iator on %artof co$%+ainant to $ae s%ecific a++eation as are reuired b +a3 to

$ae irector vicarious+ +iab+e -'trict construction is necessar -

.ere+ been described as irector is not sufficient

2007Cri 1419 'C

Case referred

A) 2006 'C "086

A) 2005 'C "51215 Cheue issued on beha+f of res%ondent - Co$%an 3as returned on

account of sto% %a$ent instruction- Accused %ersons, 3ho 3ere

Chair$an, . and oint irector b virtue of their offices can be said

to be inchare of and res%onsib+e for conduct of business of co$%an -

'inator of cheues 3hich 3as dishonoured 3as a+so c+ear+

res%onsib+e for incri$ination Act - here so ca++ed none invo+ve$ent

3i++ have to be %roved b +eadin evidence durin tria+

-!+ea that co$%+ainant had not $ade s%ecific aver$ents sufficient toinvoe %rovisions of sec/ 141 () Act - )s not tenab+e - urther %+ea

that co$%+aint aainst accused cannot be sustained as in so$e of

co$%+aints .aistrate had not issued %rocess - )s +iab+e to be reected-

rder discharin accused %ersons is i$%ro%er

2007Cri 27"

Case referred


54/83

48

A) 2005 'C "8

A) 2005 'C 24"6A) 2004 'C 4711

A) 2004 'C 4674

A) 2002 'C 182

A) 2002 'C 985

A) 2001 'C 289516 ffence b co$%an uashin of

%roceedin - Accused one of irectors - !+ea that he had inti$ated

co$%an of his desire to retire before cheue in uestion 3as issued-Cannot be round to be uash %roceedins aainst hi$

16 act that a++eations aainst irector are enuine- (ot round to

uash %roceedins

2008 Cri 4"16 'C

Case referred

2007 &9* 449

19 'ec 1"8 () Act and sec 69 &2* !artnershi% Act- ishonour of

cheue - !rivate co$%+aint for offence u/s 1"8 not barred ua sec 69 &2*

of !artnershi% Act- A$ount reuired to be %aid as %rice of artic+es of

oods- )s a +eiti$ate debt or +iabi+it and therefore it is +ea++

enforceabi+it debt or +iabi+it isabi+it of unreistered fir$ under

69&2* of !artniershi% Act to fi+e a suit to enforce a riht arisin out a

contract - does not $ae such debt or +iabi+it, a not +ea++ enforceab+e

debt or +iabi+it

2008 Cri 498

Case referred

A) 2000 'C 2676

2000Cri 2"86 &A !*

20 'ec 1"8, 142 () Act cheue dishonour %roceedins - can be

initiated aainst a %erson 3ho has sined a cheue Cheue of a oint

account sined b t3o %ersons Co$%+ainant can choose and either

%roceed aainst both sinatories or %roceed aainst %roceed aainst one

of sinatories Co$%+ainant cannot be co$%e++ed to %roceed aainst

both sinatories >er fact that %etitioner accused havin sined cheue-

Wou+d estab+ish that %etitioner accused 3as a+so an active %artner

res%onsib+e for the da to da affairs of the accused co$%an

Contention of the %etitioner accused that he 3as a s+ee%in %artner of

the fir$ - (ot tenab+e

2009Cri 224


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49

Co&plaint thro*gh co&pany

1 'ec 7, 1"8 () Act - ra3er - Can be a natura+ %erson or a

bod of %ersons , 3hether incor%orated or not

- Cheue issued b co$%an sined b its irector - ishonoured for

insufficienc of funds - on+ co$%an - ein dra3er of cheue is

entit+ed to notice u/s !roviso &b* to 'ec 1"8 () Act its irector facin

indict$ent because of sec 141 or not entit+ed to se%erate notices

2005 Cri 19"1Case referred

A) 2001 'C 518

2 Cheue dishonour co$%+aint - can be $ade b %aee or ho+der in due

course of cheue Co$%+aint +oded in na$e and on beha+f of a%%e++ant

co$%an 3ho is %aee of cheues - iis $aintainab+e- fact that co$%+aint

3as +oded b .anaer or e%ut .anaer 3ho had not been

authorised b oard of irectors to sin and fi+e co$%+aint on beha+f of

co$%an- cannot be a round for uashin co$%+aint, since defect is

curab+e

2002Cri 266

Case referred

&1999* 1 'CC 11"

1998 Cri 856

1998 Cri 1"97" 'ec 1"8, 141 () Act, 'ec 256 &1*, 255 &1* Cr!C ishonour of

cheue - Co$%+aint fi+ed b %artnershi% fir$ - 'ubseuent+,

co$%+ainant found stood ad$itted+ disso+ved and 3as taen or b a

co$%an (o a%%+ication to continue %rosecution 3as fi+ed b co$%an

Absence of a co$%etent %erson to continue the %rosecution , 3i++ stand

in 3a of co$%+ainant fir$ continuin %rosecution after obtainin +eave

fro$ court Acuitta+ on round that co$%+ainant is absent u/s 256 &1*

and not under section 255 &1* Cr!C2009Cri "05

Case referred

A) 2005 'C 48

4 ishonour of cheue - Co$%+ainant 3ho can be - Cheue has not

been endorsed b %aee in favour of anone - it is %aee a+one 3hether

cor%orea+ or incor%orea+ %erson, 3ho can be the co$%+ainant, if


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co$%an if co$%+ainant, it can be re%resented b an e$%+oee even b

a non e$%+oee authorised %erson ?overn$ent co$%an is not a %ub+ic

servant but ever e$%+oee of such co$%an is a %ub+ic servant 'ec

200 !roviso a Co$%+aint b a overn$ent co$%an e#a$ination of

co$%+ainant and 3itnesses - reuire$ent as to - co$%+iance 3ith - (ot

necessar since e$%+oee re%resentin in such co$%an is a %ub+ic

servant

2009Cri 1299

Case referred

A) 1998 'C 596

A) 1972 'C 26"9

A) 1970 'C 7

5 Co$%+ainant - .anaer in an, a++eed+ advanced +oan to accused

-ates $ention on cheue and rest of contents 3ere not in sa$e in - )t

3as i$%robab+e that co$%+ainant 3ou+d advance $one to a %erson

3ho had a+read defau+ted in re%a$ent of +oan - vidence on record

sho3ed that co$%+ainant did not have an $one 3ith hi$- )n fact heo3ed $one to others defence of accused is %robabi+ised b

co$%+ainantBs on evidence Cheues 3ere not issued for dischare of

an debt - Accused is entit+ed to be acuitted

2009Cri 882

Case referred

A) 2008 'C 1"25

&2008* 1 'CC 258


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Chapter -11. Co&plaint thro*gh a*thorisation

1 Co$%+aint b $anaer of %artnershi% fir$- Co$%+aint fi+ed b a

%erson 3ho 3as neither %artner nor authorised b %artner to fi+e

co$%+aint Authorisation is necessar- ven a %erson 3ho is +ooin

after entire business affairs of fir$ cannot fi+e such co$%+aint 3ithout

authorisation )n absence of authorisation co$%+aint is +iab+e to be

dis$issed

2009 Cri 2154

Case eferred:

A) 2009 'C 422

2002 Cri 2142

1998 Cri 47"5 @era+a

A) 1984 'C 5

2 !aee throuh his %o3er of attorne ho+der is $aintainab+e

2008 Cri 1001

Case referred

A) 2005 'C 48

" Co$%+aint not on beha+f of fir$ or aainst hi$ (ot suit to enforce

riht arisin fro$ a contract on beha+f of an %erson suin as a %artner

of the fir$, suin another %artner of the fir$ 'ec 69 &2* of !artnershi%

Act 3i++ not a%%+ (o fact of non reistration of %artnershi% fir$

Co$%+aint not +iab+e to be dis$issed for 3ant reistration of fir$2008 Cri 1001

Case referred A) 2001 @ant


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$anaer or authoriDed re%resentative 3ithout fi+in the said co$%+aint

for and on beha+f of the %aee of the ho+der in due course

2009 Cri 40"1

Case referred

2002 Cri 266

1984 Cri 1

A) 1971 'C 1865

6 he co$%+aint can be fi+ed throuh the ho+der of %o3er of attorne

and such %o3er of attorne can a+so be e#a$ined in %+ace of theco$%+ainant if he has %ersona+ no3+ede of the transaction in uestion

or the bi++s had been sined b hi$ Co$%+ainant in this case 3as not

fi+ed in the na$e of %aeehe ho+der of %o3er of attorne has %roected

hi$se+f as the co$%+aint

2009 Cri 2186

Case referred

A) 2009 'C 4222008 Cri 1509

A) 1972 'C 26"9

7 Co$%+aint b $u+ti - state coo%erative societ - is to be fi+ed b

%ersons authoriDed b a reso+ution in their, %assed b oard of

irectors !o3er to +ode co$%+aint cou+d be iven to %erson on+ b a

reso+ution of oard of irectors

2010 Cri 7"4Case referred

A) 2009 422

2008 Cri 998

2007 Cri 858

2002 Cri 266 &'C *

8 Co$%+aint fi+ed b e$%+oee of the co$%+ainant fir$- ut no

authoriDation 3as e#ecuted in his favour b fir$- co$%+aint not

$aintainab+e

2008Cri &(C* 951 < !

9 =nreistered fir$ can institute a co$%+aint about dishonour of cheue

2008Cri &(C* 948 ?A=

10 Co$%+aint +oded in na$e and on beha+f of a%%e++ant co$%an 3ho


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is %aee of cheue - )s $aintainab+e- act that co$%+aint 3as +oded b

$anaer of de%ut $anaer 3ho has not been authorised b oard of

irectors to sin and fi+e co$%+aint on beha+f of co$%an - cannot be

round for uashin co$%+aint, since defect is curab+e

2002 Cri 266 'C

Case referred

&1999* 1 'CC 11"

1998 Cri 856

1998 Cri 1"9711 eso+ution of co$%+ainant co$%an authorisin %erson to fi+e

co$%+aint 3as not ha%%i+ 3orded - Co$%+aint cannot be dis$issed on

this round

2006Cri 2065

Case referred

A) 2005 'C "512

A) 2004 'C 4274


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Chapter - 1#. Che3*e toard Sec*rity

any de5t or other lia5ility -Sec. 1, N.I. $ct1 )f a cheue is issued for securit or for an other %ur%ose the sa$e

3ou+d not co$e 3ithin the %urvie3 of the sec 1"8 of the Act

2009 Ci 4460

Case referred

2006 'C ""66

2 'ecurit inter a+ia $eans thins de%osited for h%othecated as %+ede

for fu+fi++$ent of undertain or %a$ent of +on to be forfeited in caseof fai+ure, securit is iven, not as a %iece of %a%er to be retained b the

creditor but to be enforced 3hen the debtor fai+s to %a the a$ount )n

other 3ords, no doubt the cheue 3as issued as securit but de$and to

c+ear the debt 3as $ade and u%on fai+ure securit 3as enforced

A) 2009Cri 4250

Case referred

A) 2002 'C "014" )t $a be %ointed out that sec 1"8 of the Act had three inredients-

that there 3as a +ea++ enforceab+e debt

- hat the cheue 3as dra3n fro$ the account of baner for dischare,

in 3ho+e or in %art, of an debt or other +iabi+it, 3hich %resu%%oses a

+ea+ enforceab+e debt, and

-that the cheue so issued had been returned due insufficienc of funds

here is no uarre+ or the %re%osition that section 1"9 of theAct raises a %resu$%tion in reard to ))nd inredient on+ #istence of

+ea++ recoverab+e debt is not a $atter of %resu$%tion )t $ere+ raises

%resu$%tion in favour of the ho+der of the cheue that the sa$e has

been issued for dischare of an debt or other +iabi+it a+so, once

e#ecution of the %ro$issor note is ad$itted or %roved the %resu$%tion

u/s 118 &a* of the Act 3ou+d arise that it is su%%ort b consideration

2009 Cri 2885

Case referred

A) 2008 'C 1"25

4 Cheue issued b 3a of securit - %+ea that dishonour of such

cheue does not attract cri$ina+ +iabi+it - Accused a+so a++ein

inter%o+ation in a$ount 3ritten in nu$ber- act of inter%o+ation

corroborated b e#%ert evidence - Conviction recorded 3ithout

considerin +ea+ %+ea and 3ithout ivin satisfactori+ reason for

disbe+ievin fact of inter%o+ation +iab+e to be set aside


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2008Cri "004

5 !resu$%tion as to +ea++ forcib+e - rebutta+ of - a$ount advance bco$%+ainant to accused 3as +are a$ount not re%aab+e 3ithin fe3

$onths- fai+ure b co$%+ainant to disc+ose the a$ount in his inco$e ta#

return or boo of accounts-'ufficient to rebut %resu$%tion u/s 1"9 of the

Act

- !resu$%tion as to issuance of cheue in dischare of +ea++

enforceab+e debt a$ount advanced b co$%+ainant to accused 3as

unaccounted cash a$ount )t 3as not disc+osed in inco$e ta# return -

+iabi+it to re%a uncounted cash a$ount cannot be said to be +ea++enforceab+e +iabi+it 3ithin $eanin of e#%+anation of sec 1"8 () Act-

Acuitta+ of accused %ro%er

2009 Cri "777

Case referred

A) 2008 'C 1"25

A) 2007 'C 451

A) 2005 'C 2277

6 ea++ enforceab+e +iabi+it or other +iabi+it - Aree$ent of sa+e of

t3o sho%s bet3een accused and co$%+ainant - Accused %aid %art of

consideration a$ount and issued %osted cheue to3ards consideration

a$ount 3hich 3as dishonoured Co$%+ainant 3as in %ossession and

eno$ent of sho%s and did not de+iver to accused an of sho%s even

after of receivin %art of consideration a$ount Co$%+ainant 3ou+d be

entit+ed to receive ba+ance consideration a$ount on+ on e#ecution and

reistration of sa+e deed in favour of accused- !a$ent of ba+anceconsideration a$ount 3as other +iabi+it and not +ea++ enforceab+e

+iabi+it

- Cheue 3as issued b accused to co$%+ainant under an aree$ent

bet3een the$ - )f there 3as na vio+ation of an ter$ of aree$ent b

accused, re$ed o%ened to co$%+ainant to tae a%%ro%riate ste% before

Civi+ Court and Cri$ina+ Court - Acuitta+ %ro%er

2010Cri 1061

Case referred

A) 2008 'C 1"25

A) 2009 'C 568

7 ischare of debt rebutta+ of %resu$%tion u/s/ 1"9 of the Act - Court

can tae notice of conduct of %arties- res%ondent a++eed to have

borro3ed hue su$ fro$ a%%e++ant - Co$%+ainant des%ite suits for

recover of defau+ted a$ount fi+ed aainst hi$ b a%%e++ant - no


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docu$ent e#ecuted - a$ount advanced carr no interest - findin of fact

b


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$atter to be +ooed into stae of tria+ 3hether cheue 3as iven in

b+an or in securit

2006 Ci ""12

Case referred

2005 Cri "029 &o++*

&2004* 1 Cri$es 567 &A! *

1995 Cri 560 &A!*


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Chapter - 1. 6iscellaneo*s

Nonappearance of co&plainant

1is$issa+ of co$%+aint on round of non a%%earance of co$%+ainant

- 3o constraints are i$%osed in the Court for e#ercisin %o3er u/s 256

Cr!C

a )f the court thin that in a situation it is %ro%er to adourn the

hearin then the .aistrate sha++ not acuit the accused

b When the .aistrate considers that %ersona+ attendance ofco$%+ainant is not necessar on that da, the .aistrate has the %o3er

to dis%ense 3ith his attendance and %roceed 3ith the case When the

court notices that the co$%+ainant is absent on a %articu+ar da the

Court $ust consider 3hether %ersona+ attendance of the co$%+ainant is

essentia+ on that da for the %roress of the case and a+so 3hether the

situation doesnBt ustif the case bein adourn to another date due to an

other reason )f the situation does not ustif the bein adourn the Court

is free to dis$iss the co$%+aint and acuit the accused, but if the %resentof the co$%+ainant on that da 3as uite a necessar then resortin to

the ste% of a#in do3n the co$%+aint $a not be a %ro%er e#ercise of

the %o3er envisaed in the section

2006 Cri "170

2009 Cri "911 ! E <


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non a%%earance

2009 Cri "925Case referred

A) 2008 'C 1296

2004 Cri 406 &.!*

&2002* 7 'CC 726 .ohd ADee$ Case

4 is$issed in defau+t for sin+e instance of nona%%earance of

co$%+ainant i$%ro%er )t shou+d be endeavour of the Court to render

substantia+ ustice to t he %arties and not to resort to technica+ities todefeat the substantia+ riht of the %erson 3ho has noced its door in

e#%ectation that his rievance 3ou+d be rendered he basic obect and

%ur%ose of 3hich is to harness the vio+ators of the transaction arisin

fro$ $ercanti+e

2007 Cri "460

Case referred

2006 Cri "172 ! E


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Nonappearance of co&plainant -

is&issed in defa*lt - estoration1 Co$%+aint dis$iss in defau+t - estoration of - three co$%+aints 3ere

fi+ed b co$%+ainant aainst three different %ersons- (otins $aintained

in diar of Court sho3ed %resence of co$%+ainant in t3o co$%+aints

on+ - ue to oversiht %resence of co$%+ainant cou+d not be noted in

third co$%+aint 3hich ca$e to be dis$issed in defau+t - Co$%+ainant

ave sufficient reasons and souht restoration of sa$e - estoration

a%%+ication ho3ever, dis$issed for no va+id reasons- Writ %etitions

aainst, fi+ed 3ithin %eriod of +i$itation fro$ date of no3+ede ofco$%+ainant - A++o3ed and treated as revision

2007 Cri 2596


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ischarge application

1 'ec 2"9, 245 Cr!C, 'ec 1"8 ()Act -hrouh a%%+ication for

dischare 3as $ade u/s 2"9 and 245 Cr!C 3ron+, tria+ .aistrate

$a treat sa$e as under section 258 Cr!C and see 3hether there is

$ateria+ to %roceed further - sufficient $ateria+ on record to %roceed

3ith tria+ - rder of .aistrate reectin a%%+ication for dischae - )s

%ro%er

2005Cri "805

Case referred

A) 2004 'C 4087

A) 2004 'C 4274

A) 2004 'C 4711

2 'ec 1"8 () Act %etition for dischare - riab+e +ie su$$ons case-

!etition for dischare not $aintainab+e

2005 Cri 4492Case referred

&2005* 4 'CC 417

2004Cri 4609

2004Cri 4874


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'ndorse&ent ref*sed

1 Co$%+ainantBs case that he has sent notice under reistered %ost to

accused res%ondent, 3hich 3as returned to an Bendorse$ent refusedB -

here is an endorse$ent refused but there is no sinature of an 3itness

before 3ho$ the accused %erson refused to tae notice or an sinature

$ade b accused hi$se+f on said +etter - Co$%+ainant has not e#a$ined

%osta+ %eon 3ho 3ent to de+iver said +etter- Co$%+ainant has further

stated in his evidence that house for 3hich cheue 3as iven to hi$, did

not be+on to hi$ - Co$%+ainant has fai+ed to %rove his case and a+sofai+ed to co$%+ %rovisions of sec 1"8 &c* - rder of acuitta+ is

therefore %ro%er

2009Cri "768

2 'ervice of notice - )s sine ua non for +aunchin %rosecution - cheue

3as issued on beha+f of co$%an - (otice oint+ address sent to .

of co$%an, to the co$%an and to the fir$ in one enve+o% - 3as

returned b %ost$an as refused - 3ou+d be dee$ed to be du+ served -

refusa+ to acce%t is a+3as considered as ood service- !resu$%tion ofservice of notice cannot be rebutted b accused .anain irector b

$ere denia+ in state$ent u/s "1" Cr!C

2008Cri "770


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Stop Pay&ent/$cco*nt closed

1irection of sto% %a$ent of cheue iven to ban - 3ou+d not tae

offence out of s3ee% of 'ec 1"8 ()Act

2010Cri 748

Case referred

A) 200" 'C 20"5

A) 1996 'C 2""9

2 'ec 1"8, 1"9 () Act - (ot +iab+e to be uashed on round of

dishonour of cheue b reason of sto% %a$ent instruction

!resu$%tion u/s 1"9 that cheue 3as received b ho+der for dischare of

that +iabi+it arises - !resu$%tion thouh is rebuttab+e

2002Cri 266 'CC

Case referred

&1999* 1 'CC 11"

1998 Cri 856

1998 Cri 1"97

" Account c+osed $eans cheue is returned for insufficienc of funds

Account 3hich a+read stands c+osed cannot attract the $ischief of the

sec 1"8 () Act, this %+ea is not $aintainab+e

2010Cri 2502


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Signat*re of co&plainant sho*ld hae 5een signed for expert

opinion- plea of acc*sed

1 !+ea b accused that signat*re of co&plainant in h5is letter sho*ld

hae 5een sent for e#%ert o%inion - onus of %roof 3as on hi$ to tae

ste%s - (othin on record to indicate that he too ste%s to tae assistance

of an e#%ert to %rove that %ur%orted sinature of co$%+ainant in +etter

3as that of co$%+ainant- )n case it 3as c+ear that cheue 3as issued for

su$ s%ecific or +iabi+it - it is not o%en for accused to tr ca%ita+iDed his

o3n +aches and fau+t - Conviction of accused is %ro%er2002 Cri 4025

Case referred

A) 2005 'C 4161

A) 2002 'C 2907


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'ndorse&ent on che3*e itho*t ;noledge of

co&plainant

1!etitioner accused issued cheue in favouor of co$%+ainant for

dischare of %art of debt - factu$ of dishonour of cheue and suin of

+ea+ notice b co$%+ainant not dis%uted- endorse$ent Bsans recourseB

on cheue $ade b accused 3ithout no3+ede of co$%+ainant and in

absence of $entionin said fact in its re%+ notice b accused -

%rosecution cannot be uashed

- )t can be said that b $ain so$e endorse$ent b the accused

hi$se+f on the cheue does not e#onerate hi$ fro$ t he %ena+ %rovisionunder the statue

2007Cri 2901


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isp*ted Signat*re

1 is%uted sinature - cheue 3as a++eed+ reva+idated b accusedres%ondent - 'ince the reva+idation 3as denied b res%ondent, the

burden 3as certain+ on the a%%+icant 3ho 3as c+ai$in fresh %eriod of

+i$itation - (o a%%+ication to e#a$ine cheue b hand 3ritin e#%ert

3as $ade b co$%+ainant - Co$%arison of dis%uted sinature 3ith

standard sinature of accused b .aistrate- u++ ustified (o need of

interference as to order of acuitta+ - A%%+ication for +eave to fi+e a%%ea+

aainst acuitta+ +iab+e to be reected

2009Cri 4176Case referred

A) 2002 'C "8

1980 Cri "96


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eport of loss of che3*e

1 Cheue returned b ban on round that re%ort of +oss of cheue 3as

fi+ed b dra3er 'ec 1"8 is not attracted

2009Cri "454

Case referred

2009 A) 'CW 18"6

A) 2008 'C 2255

A) 2006 'C 407

- he %ara$eters for invoin the %rovisions of sec 1"8 of the Act

bein +i$ited, 3e are of the o%inion that refusa+ on the %art of the ban

to honour the cheue 3ou+d not brin the $atter 3ithin the $ischief of

the %rovision of the sec 1"8 of () Act

2 an return cheue issued b accused in favour of co$%+ainant

to3ards %rice of brics su%%+ied - reason iven b ban that cheue

3ere re%orted to be +ost b dra3er Cheue +ost a+so a$ounts toreturnin cheue un%aid , a$ount of $one standin standin to credit

of that account is insufficient to honour cheue - sa$e is fu++ covered

u/s 1"8 () Act

2010Cri 1209

" Co$%+ainant had +ent s 65,000/- to %etitioner accused %erson-

3here u%on accused %erson %arted 3ith cheue 3hich +ater bounced -

%+ea b accused that he had +ost cheue and even $ade %ub+ication

about it bein $issin - Was concocted and cannot be re+ied u%on-


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eath of person iss*ing che3*e

1 eath of %erson issuin cheue -%rocess cannot be issued aainst his

+ea+ re%resentatives - eath of %erson issuin cheue - initiation

cri$ina+ %rosecution aainst his is abuse of %rocess of Court-

Co$%+ainant +aunchin untenab+e %rosecution aainst the$ is +iab+e to

%a co$%ensation

2006Cri 222


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Co&plaint filed 5y priate party against respondent/for

false co&plaint so ca*sed notice to co&plainant to pay

co&pensation- is illegal.

1ischare of accused fro$ %rosecution - su$$on case - co$%+aint

fi+ed b %rivate %art aainst res%ondent for a++eed offence of

dishonour of cheue u//s 1"8 () Act is not a case instituted other3ise

than on co$%+aint-%rovision of sec 258 Cr%C not attracted

-Co$%+aint fi+ed aainst res%ondent accused offence for dishonouor of

cheue- Accused raisin defence at %retria+ state -rder %assed b.aistrate considerin said defence is to sto% %roceedin and issuin

so cause notice to co$%+ainant to %a co$%ensation for fi+in fa+se

co$%+aint- is i++ea+ and +iab+e to be uashed

2006Cri 1660

Case referred

2001 Cri""22


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Co&plainant had already ta;en reco*rse to ar5itration

1 Fuashin of, on round that co$%+ainant had a+read taen recourse

to arbitration %roceedin- not %ro%er

2009Cri 787

Case referred

1999 A) 'CW "492

&1999* 8 'CC 686


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Section 1)) Cr.P.C. not attract 1! N.I. $ct

1 'ec 1"8, 142, 14" ()Act and section 155 Cr!C -1 ishonour of cheue - %rosecution for - had to be initiated b +odin

of co$%+aint before court- 'ec 155 of Cr!C 3hich reuire c+ear

%er$ission of .aistrate for tain coniDance of non coniDab+e

offence b %o+ice cannot be invoed 3hen s%ecia+ %rocedure is

%rescribed u/s 142, 14" () Act - rder of fficer -)n - Chare %o+ice

station acce%tin ) +iab+e to be uashed

2008Cri "650

Case referred

A) 2007 'C 1274

A) 1999 'C 11"1


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$lteration of dates on che3*e

1 'ec 87 1"8 () Act inva+id cheue - can be reva+idated vo+untari+

b a+terin the dates so as to ive fresh +ife to cheue for another si#

$onth - defence in that a+teration in the date 3as not $ade vo+untari+ -

3ou+d not constitute round for uashin cheue dishonour co$%+aint

)t is the uestion of fact to be estab+ished on evidence durin tria+

2002 Cri 20" 'C


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ifference in a&o*nt &entioned in ords and fig*re

1 ifference in a$ount $entioned in 3ords and fiure - cheue cannot

be ter$ed as inva+id-A$ount stated in 3ords sha++ be a$ount

undertaen or ordered to be %aid

2009 Cri 121"


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9ho can file the co&plaint

1 Who can fi+e co$%+aint - !o3er of attorne ho+der of %aee or a

ho+der in due course - can fi+e co$%+aint %rovided uide+ines stated to

be fo++o3ed

- Co$%+aint can be %resented b ?!A on beha+f of the %aee %rovided

- he co$%+aint sha++ be sined b the %aee hi$se+f

- here sha++ be a+so an affidavit of the co$%+ainant in %roof of his

e#ecution of ?!A, added to the %roduction of the said %o3er of attornedocu$ent

- '3orn state$ent of ?!A can be recorded on the date of %resentation of

the co$%+aint

- '3orn state$ent of %aee &Co$%+ainant* sha++ have to be taen in a

future date on his a%%earance in Court, the .aistrate sha++ thorouh+

e#a$ine the state$ents of ?!A ho+der as 3e++ as the oriina+ co$%+aint

and docu$ent %roduced before hi$ and e#ercise his discretion vested u/

s 202 and 20" Cr!Che uide+ines stated are not e#haustive and in other

circu$stances the .aistrate sha++ e#ercise his discretion udicia++ and

in confor$it of other %rovisions of +a3 a%%+icab+e

2005Cri "572

Case referred :

A) 2005 'C 48

A) 2005 'C 4"9

2004Cri 4119

200"Ci 19"8

2002 Cri 266

2001Cri "62"

2000Cri 9"0


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Negotiable Instrument Act-138-Allahabad District Court-Users Guide

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Transcript of Negotiable Instrument Act-138-Allahabad District Court-Users Guide