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2018 (3) TMI 1134 - HC - Indian LawsDishonor of Cheque - maintainability of complaint u/s 138 of the N.I. Act - it was contended that the drawer and drawee of the cheques being one and the same, the Branch Manager of the Bank cannot maintain the complaint - whether the Bank was entitled for encashment of Cheque since the drawer and drawee were one and the same? Held that: - The Supreme Court in similar nature of case in Punjab & Sind Bank Vs. Vinkar Sahakari Bank Ltd. [2001 (9) TMI 993 - SUPREME COURT OF INDIA], held that so long as the instrument is in possession of a 'holder in due course' such instrument would be operative as a bill of exchange even if the drawer and drawee are happened to be the same person or banking institution. The orders passed by the Courts below cannot be held to be illegal and it shall always be open to the petitioners to rebut the presumption during the course of evidence that the Bank was not a 'holder in due course' and it was not for any consideration of liquidation of the loan. Prima facie, the complaint having been registered on the basis of section 145 of the N.I. Act upon the affidavit, the same cannot be quashed at the threshold and the petitioners are liable to face the trial of complaint under Section 138 of the N.I. Act. Petition dismissed.
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