TMI Blog2016 (1) TMI 951X X X X Extracts X X X X X X X X Extracts X X X X ..... as has indeed happened in the case at hand. The argument that the respondent had no liability to liquidate the debt owed by Nazimul Islam, has not impressed us. What is important is whether the cheques were supported by consideration. Besides the fact that there is a presumption that a negotiable instrument is supported by consideration there was no dispute that such a consideration existed in as much as the cheques were issued in connection with the discharge of the outstanding liability against Nazimul Islam. At any rate the endorsement made by the respondent on the promissory note that the cheques can be presented for encashment after 25-09-2007 clearly shows that the cheques issued by him were not ornamental but were meant to be presented if the amount in question was not paid within the extended period. The High Court in our view fell in error in upsetting the conviction recorded by the Courts below who had correctly analysed the factual situation and applied the law applicable to the same. Conviction upheld - Decided in favor of appellant. - Criminal Appeal Nos. 82-83 of 2016 (Arising out of S.L.P. (Crl.) Nos.4517-4518 of 2014) - - - Dated:- 28-1-2016 - CJI. T. S. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n no such return was made to the Complainant/Appellant. All the cheques were, however, dishonoured by the bank on the ground of insufficiency of funds. A second presentation also proved abortive for the same reason. It was at this stage that Respondent No.2-Haren Mudoi appeared on the scene and indemnified the Complainant/Appellant by acknowledging that the cheques in question were actually issued by him and handed over to Nazimul Islam. This acknowledgment was reflected in the form of an endorsement on the Promissory Note in which he agreed to the cheques being presented for payment after 25th September, 2007. The Complainant/Appellant accordingly once again presented the cheques for payment on 5th November, 2007 but the same were dishonoured by the bank for the third time. This led to the issue of a statutory notice by the Complainant/Appellant to which the Respondent sent a reply through the lawyer denying that he had any knowledge of handing over of all the cheques to the Complainant/Appellant by Nazimul Islam and also about the dishonour of the cheques due to insufficiency of funds. What is significant is that, in the reply, the Respondent undertook to pay the whole amount of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e was in the following words: PROMISSORY NOTE Dated 13.8.2007 I Shri Nazimul Islam s/o Late Sirajul Islam resident of Bishnu Rabha Path Beltola do hereby declare that after mutual discussion between us (the parties) as per agreement dated 06/07/07 have decided to cancel the said agreement and as such the advance amount of ₹ 10,00,000/- (Rupees Ten Lakhs only) shall be refunded within a period of one month from today. The amount is being refunded vide cheques Nos. 191254 dated 05.09.2007, 191255 dated 07.09.2007, 191256 dated 09.09.2007, 191257 dated 11.09.2007 and cheque No.191258 dated 13.09.2007 which has been acknowledged by Mr. Dhan Ayengia, resident of Nabagrah Road, Guwahati. It may here be mentioned that these cheques have been issued as a security and shall be returned to me as and when the payments are received from me, within the mentioned period. Further it may be also be mentioned that one month s bank interest shall be paid by me, after the payment is cleared, within the stipulated period. (Nazimul Islam) 13.8.2007 9. We may also extract, at this stage, the endorsement which the Respondent made on the Promissory Note acknowledging that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is no difficulty. The difficulty arises only because the promissory note uses the words security qua the cheques. This would ordinarily and in the context in which the cheques were given imply that once the amount of rupees ten lakhs was paid, the cheques shall have to be returned. There would be no reason for their retention by the complainant or for their presentation. In case, however, the amount was not paid within the period stipulated, the cheques were liable to be presented for otherwise there was no logic or reason for their having been issued and handed over in the first instance. If non-payment of the agreed debt/liability within the time specified also did not entitle the holder to present the cheques for payment, the issue and delivery of any such cheques would be meaningless and futile if not absurd. It is important to note that it was not a case where no debt or liability was determined or acknowledged to be payable. If cheques were issued in relation to a continuing contract or business where no claim is made on the date of the issue nor any determinate amount payable to the holder, one could perhaps argue that the cheques cannot be presented or prosecution launche ..... X X X X Extracts X X X X X X X X Extracts X X X X
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