2020 (5) TMI 605 - Indian Laws

Head Note / Extract:
Dishonor of Cheque - main thrust of argument is that since respondent No. 1 admittedly received a sum of ₹ 5 million US Dollars from one of the debtors of the respondent No. 2 company, therefore, after adjustment of this amount, no debt is left and 5 complaints U/s 138 NI Act are liable to be quashed - HELD THAT:- In the instant case, though admittedly, an amount of 5 million US Dollars have been received by respondent No. 1 from M/s Roseberry Global FZE, Sharjah, who according to the petitioner is one of the debtor(s) of respondent No. 2 company but there is nothing on record to suggest that there were any such directions from the side of respondent No. 2 company to apply the said amount so received against the cheques in question in respect of which the complaints are pending. Liability against the respondent No. 2 company is around 14 Hundred Crores and the cheque(s) amount are only part of the money payable by the respondent No. 2 company. Moreover, in view of Section 60 of the Indian Contract Act, in a case, where the debtor has omitted to intimate, and there are no other circumstances indicating to which debt the payment is to be applied, it is the discretion of the creditor to adjust the payment against any lawful debt actually due and payable to him from the debtor - there is nothing on record to suggest that there were any specific directions by the respondent No. 2 company qua adjustment of this amount so received by respondent No. 1 against the cheque(s) amount in respect of which the complaints are pending. Petition dismissed.