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2011 (3) TMI 1464 - HIGH COURT OF DELHIDishonor of cheque - section 138 of the Negotiable Instruments Act (N.I. Act) - Held that:- asin order to bring home the guilt of the respondents under section 138 N.I. Act, the petitioners are first required to establish that the instruments which were presented for encashment and returned unpaid were actually the cheques as defined under section 6 of the N.I. Act. A cheque is a bill of exchange drawn on a specified banker authorising him to pay the amount mentioned in the cheque on demand to the drawee and debit the same to the account of the drawer. Mode of operation of bank account was joint by two Directors - Since the aforesaid purported cheques do not bear the signatures of the second joint signatory, the aforesaid instruments do not qualify the definition of a valid cheque which could be acted upon by the bank in terms of the instructions regarding the mode of operation of the bank account. - aforesaid instruments cannot be termed as validly drawn cheques and as such one of the most essential ingredients of offence under section 138 N.I. Act is lacking in this case. The respondents may have committed an offence of cheating punishable under section 420 IPC but by no means it can be said that they are guilty of offence under section 138 N.I. Act.
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