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2019 (3) TMI 1895 - SC - Indian LawsDishonor of Cheque - cheques were issued under agreement to sell - legally enforceable debt or not - HELD THAT:- Admittedly, the cheques were issued under and in pursuance of the agreement to sell. Though it is well settled that an agreement to sell does not create any interest in immoveable property, it nonetheless constitutes a legally enforceable contract between the parties to it. A payment which is made in pursuance of such an agreement is hence a payment made in pursuance of a duly enforceable debt or liability for the purposes of Section 138 - Moreover, acting on the General Power of Attorney, the Respondent entered into a subsequent transaction on 3 August 2013. Evidently that transaction was after the legal notice dated 21 June 2013 and hence could not have been adverted to in the legal notice. Recourse to the jurisdiction of the High Court Under Section 482 was a clear abuse of process. The question as to whether there was a dispute as contemplated in Clause 4 of the Agreement to Sell which obviated the obligation of the purchaser to honor the cheque which was furnished in pursuance of the agreement to sell to the vendor, cannot be the subject matter of a proceeding Under Section 482 and is a matter to be determined on the basis of the evidence which may be adduced at the trial. The order passed by the High Court in the petition Under Section 482 Code of Criminal Procedure was unsustainable - Appeal allowed.
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