9911796707
TMI Blog2004 (6) TMI 643X X X X Extracts X X X X X X X X Extracts X X X X ..... alleged are that punishable under Sections 138 of the Negotiable Instruments Act and under Section 420 of the IPC. The subject matter was Ext. P2 cheque dated 5-5-1993 for an amount of Rs. 20,000/- issued by the accused/1st respondent. When the cheque was presented to the bank, it bounced. So the offence as alleged has been committed by the 1st respondent. Reversal of the conviction is therefore bad; the appellant submits. 2. The finding of the learned Sessions Judge that Ext.P2 cheque was issued as a security and therefore does not attract Section 138, now cannot be accepted in the light of the decision of the Apex Court in I.C.D.S. Ltd. v. Beena Shabeer (MANU/SC/0669/2002 : 2002 (3) KLT 218). Even a cheque issued by the guarantor to ensu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one in respect of a cheque issued by a guarantor ensuring payment of a debt incurred by principal debtor in case of his default. Considering the word "any debt or liability" appearing in Section 138. The Supreme Court held as follows: The language, however, has been rather specific as regards the intent of the legislature, the commencement of the section stands with the words "Where any cheque". The above noted three words are of extreme significance, in particular, by reason of the user of the word "any" the first three words suggest that in fact for whatever reason if a cheque is drawn on an account maintained by him with a banker in favour of another person for the discharge of any of debt or other liabil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 138 of the Act will apply. 5. In this case, the cheque was presented after six months from 27-10-92, from the date of Ext.P1. Of course, Ext.P2 cheque which has been entrusted by the appellant to the 1st respondent on 27-10-92 is seen dated 5-5-93. But Clause 3 and 4 in Ext.P1 agreement admittedly entered into by the parties make it clear that the respondent was issuing the cheque to the appellant as security and the amount stipulated in the agreement would be paid within six months, and that in case of failure to pay the stipulated amount within six months, the appellant would be entitled to present the cheque in the bank. 6. Ext.P2 cheque was duly handed over representing that at that eventuality envisaged in Ext.P1, it could be encashe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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