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2016 (6) TMI 1448 - HC - Indian LawsDishonor of Cheque - drawer of cheque - liability of a person who draws a cheque on an account maintained by him, for paying payee - Section 138 of NI Act - HELD THAT:- In the present case, it is admitted fact that the drawer of the cheque was the respondent No. 2, who had drawn the cheque bearing number "224385" for ₹ 4 Lakhs in the bank account maintained by him in HDFC Bank, Bharat Talkies, Hamidia Road Branch, Bhopal, towards the consideration of the sale. Therefore, the respondent No. 2 was the drawer of the cheque. The scope of section 138 of the Negotiable Instruments Act can be held that, it is very clear that in order to attract the provision, the following essentials have to met for attracting a liability under section 138 of the Act. The person who is to be made liable should be the drawer of the cheque and should have drawn the cheque on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for discharge in whole or part, of any debt or other liability. This Court is of the view that the respondent No. 2 has signed and issued the cheque is only liable under section 138 of the Act, even though the sale deed was executed in favour of the petitioner - Petition allowed.
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