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2022 (4) TMI 359 - HC - Indian LawsDishonor of Cheque - Rejection of application of the petitioner seeking discharge in the criminal case - petitioners filed an application seeking discharge in criminal case on the ground that since the entire disputed amount has already been paid to the respondent during the period May 2017 to 2018, the complaint under Section 138 of the NI Act and Section 420 of IPC is not maintainable - HELD THAT - The petitioners have filed copy of statement of leisure account from which payment is said to have been made to the respondent firm. On 26.10.2021 itself, the application of the petitioners has been considered and rejected by the learned JMFC observing that the present case relates to dishonour of cheque, in which on 11.08.2021, the particulars of offence were stated to the accused/petitioners under Section 251 of CrPC, which was denied by him and it was stated that he had given the blank cheque to the respondent firm, which has been misused and thereafter the case was fixed for complainant's evidence. In such circumstances, the present case is a subject matter of evidence, which cannot be decided at this stage without going into merits of the case and accordingly the application of the petitioners was rejected and the case was again fixed for complainant's evidence under Section 254 of CrPC. Applying the principle laid down by the Hon'ble Supreme Court in SRIPATI SINGH (SINCE DECEASED) THROUGH HIS SON GAURAV SINGH VERSUS THE STATE OF JHARKHAND ANR. 2021 (11) TMI 66 - SUPREME COURT in the present case as well, it is quite vivid that the present complaint case under Section 138 of the NI Act is a summons trial case and the learned Trial Court has rightly held that prima facie application cannot be decided without going into merits of the case in absence of any evidence. This finding of Trial Court is based on correct appreciation of provisions of law, which cannot be interfered with by this Court. Petition dismissed.
Issues:
1. Rejection of discharge application in a criminal case under Sections 138 of the Negotiable Instruments Act, 1881 and Section 420 of IPC. 2. Dispute regarding non-payment of borrowed amount and dishonored cheque. 3. Allegation of misuse of blank cheque given as security by the petitioner. Analysis: 1. The petitioners filed a Section 482 petition against the rejection of their discharge application in a criminal case related to dishonored cheques. The respondent firm alleged non-payment of a borrowed amount and a dishonored cheque issued by one of the petitioner's firms. The petitioners contended that they had already paid the disputed amount between May 2017 to 2018, supported by leisure account statements. However, the court found that the case involved dishonor of a cheque and the matter required detailed evidence before a decision could be made. The court cited the Supreme Court's decision in a similar case, emphasizing that the trial court's decision to proceed with the case was appropriate. 2. The respondent firm accused the petitioners of failing to repay a borrowed amount and issuing a dishonored cheque. The petitioners argued that they had already settled the debt between May 2017 to 2018 and provided account statements as proof. Despite this, the court found that the case involved a dishonored cheque, which required a thorough examination of evidence before reaching a conclusion. The court referred to a Supreme Court judgment to support the position that the trial court's decision to continue with the case was justified. 3. The petitioners alleged that the respondent firm misused a blank cheque given as security during a purchase transaction. They claimed that the respondent falsely implicated them in the case and failed to consider the evidence of payment provided by the petitioners. The court, however, found that the case primarily revolved around the dishonor of a cheque, which necessitated a detailed examination of facts and evidence. The court upheld the trial court's decision to proceed with the case, emphasizing the need for a trial to determine the veracity of the petitioner's claims regarding the misuse of the blank cheque. This detailed analysis of the judgment highlights the key issues involved, including the rejection of the discharge application, the dispute over non-payment and dishonored cheques, and the allegation of misuse of a blank cheque. The court's decision to continue with the trial based on the need for detailed evidence and examination of facts is supported by legal precedent, ensuring a fair and thorough adjudication of the case.
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