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2019 (2) TMI 662 - HC - Indian LawsDishonor of Cheque - insufficient funds - the petitioner’s contention in the complaint is that the respondent failed to deposit the amount of ₹ 20,25,000/- that was collected from the borrowers but has failed to examine any such borrower to prove that they made the payment to the respondent for the repayment of loan - section 138 of NI. Held that:- The petitioner company failed to explain why the stamp papers for the loan agreement were purchased almost three years prior to the execution of loan documents. Moreover, the loan agreement is a void contract for want of consideration. It is evident that the consent of the respondent was obtained through misrepresentation thus making the loan agreement between the petitioner and respondent void under Section 19 of the Indian Contract Act. As per the loan agreement dated 8th January 2013 the loan amount was for ₹ 20,25,000/- whereas the cheque in question for an amount of ₹ 26,63,037/- was presented on 16th May 2013. The petitioner company has failed to explain how the liability increased from ₹ 20,25,000/- to ₹ 26,63,037/- within a period of five months. Therefore, the legal demand notice was not a valid notice as it was a demand for more than the actual loan amount and would not fasten any criminal liability on the respondent - Findings of the learned Metropolitan Magistrate acquitting the respondent, based on the facts cannot be said to be perverse warranting interference by this Court. Leave to appeal petition is dismissed.
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