2002 (2) TMI 1214 - SUPREME COURT

Offence punishable under section 138 of the Negotiable Instruments Act, 1881 - Held that:- Set aside the order passed by the learned Single Judge of the High Court, allow this appeal and remand the matter of the Magistrate to proceed with the complaint in accordance with law.

This is not a case where the cheque was drawn in respect of a debt or liability, which was completely barred from being enforced under law. If, for example, the cheque was drawn in respect of a debt or liability payable under a wagering contract, it could have been said that debt or liability is not legally enforceable as it is a claim, which is prohibited under law. This case is not a case of that type. But at this stage of the proceedings, to say that the cheque drawn by the respondent was in respect of debt or liability, which was not legally enforceable, was clearly illegal and erroneous.