Forgot password
New User/ Regiser
⇒ Register to get Live Demo
2001 (11) TMI 837 - SC - Companies Law
Cognizance of offence under section 138 of the Negotiable Instruments Act - Held that:- If the accused shows that in his account there were sufficient funds to clear the amount of the cheque at the time of presentation of the cheque for encashment at the drawer bank and that the stop payment notice had been issued because of other valid causes including that there was no existing debt or liability at the time of presentation of cheque for encashment, then offence under section 138 would not be made out. The important thing is that the burden of so proving would be on the accused. Thus, a Court cannot quash a complaint on this ground.