TMI Blog2022 (6) TMI 368X X X X Extracts X X X X X X X X Extracts X X X X ..... ee of the cheque. In the case on hand, the petitioner has herself admitted that the cheque in question was issued as a security. This Court has no hesitation to hold that the contention of the petitioner that the proceeding initiated by the respondent is not maintainable, as the cheque was issued as a security, cannot legally be entertained. Hence, this Court concludes that this Criminal Original Petition is devoid of merits and the same is liable to be dismissed - Petition dismissed. - Crl. O.P. (MD) No. 3575 of 2019 - - - Dated:- 21-4-2022 - HONOURABLE MR. JUSTICE K. MURALI SHANKAR For the Petitioner : S. Packiamuthu for M. Thirunavukarasu For the Respondents : S. Deenadayalan for B. Anandan ORDER This Crimina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inant has sent a legal notice dated 04.10.2018 to the petitioner demanding to pay the amount covered by the cheque, that the petitioner, after receipt of the legal notice, has sent a reply notice dated 23.10.2018 with false and incorrect particulars and that since the petitioner has not chosen to pay the amount, the complainant was constrained to lodge the above complaint. 5. The learned counsel for the petitioner would submit that the cheque in question indicated in business agreement dated 25.12.2015 will itself prove that the said cheque was issued as a security, that the story created by the respondent alleging cause of action stating that the cheque was issued on 02.10.2018 is utter false and illegal, that the petitioner has sent a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... D account with the bank, the account was closed and the same was informed to the respondent, that thereafter the petitioner had been using Canara Bank account Aruppukkottai Branch and that the respondent, after fully knowing that the bank account maintained with City Union Bank by the petitioner was already closed, has purposely presented the cheque for collection with the sole intention to lodge the above complaint. 9. The learned counsel for the respondent would submit that the petitioner has not disputed the business transactions, she had with the respondent and that the petitioner has also not disputed the purchase of chemicals vide 7 invoices listed in the complaint. 10. The learned counsel for the respondent would further submit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner has relied on the decision of the Hon'ble Supreme Court in Sudhir Kumar Bhalla vs. Jagdish Chand and others reported in 2008 7 SCC 137. In the said decision, the Hon'ble Supreme Court has set aside the judgment of conviction recorded by the High Court and remitted back to the High Court and the relevant passage is extracted hereunder:- 22. On examination of the above-stated findings of the learned Single Judge in the judgment impugned before us, we find that the learned Single Judge has not addressed himself on the legal question raised before him by the appellant that the criminal liability of the appellant under the provisions of Section 138 of the Act are attracted only on account of the dishonour of the cheques issued i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arties. Where, acting upon the underlying purpose, a commercial arrangement between the parties has fructified, as in the present case by the supply of electricity under a PSA, the presentation of the cheque upon the failure of the buyer to pay is a consequence which would be within the contemplation of the drawer. The cheque, in other words, would in such an instance mature for presentation and, in substance and in effect, is towards a legally enforceable debt or liability. This precisely is the situation in the present case which would negate the submissions of the appellants. 18. The Hon'ble Supreme Court in Sripati Singh (since deceased) through his Son Gaurav Singh Vs. State of Jharkhand and another in Crl. A. Nos. 1269-1270 o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... od being stipulated for repayment, all that it ensures is that such cheque which is issued as 'security' cannot be presented prior to the loan or the instalment maturing for repayment towards which such cheque is issued as security. Further, the borrower would have the option of repaying the loan amount or such financial liability in any other form and in that manner if the amount of loan due and payable has been discharged within the agreed period, the cheque issued as security cannot thereafter be presented. Therefore, the prior discharge of the loan or there being an altered situation due to which there would be understanding between the parties is a sine qua non to not present the cheque which was issued as security. These are o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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