TMI Blog2004 (8) TMI 772X X X X Extracts X X X X X X X X Extracts X X X X ..... gave a cheque dated April 25, 2003, for Rs. 35,69,375 drawn on Tamil Nadu Mercantile Bank Ltd. towards the balance amount due and payable as per the agreement, and agreed to take the sale deed within one week from April 25, 2003, at the expense of the petitioners, and when the said cheque was presented for payment in Andhra Bank, Khairatabad, on April 25, 2003, by the second respondent, it was returned with an endorsement dated April 28, 2003, that payment was countermanded by the drawer and that in spite of a notice dated May 5, 2003, demanding payment of the amount covered by the dishonoured cheque being issued, the petitioners failed to make payment of the amount covered by the dishonoured cheque nor sent a reply, respondents Nos. 2 to 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... covered by the dishonoured cheque was given towards the balance of sale consideration due and payable to respondents Nos. 2 to 4 from the petitioners under the agreements, since the word debt is not defined in the Act, by giving a wider meaning to the word debt , it is to be taken that the dishonoured cheque was given towards a legally enforceable debt , i.e., the sale consideration due and payable to respondents Nos. 2 to 4 under the agreement of sale entered into by the petitioners. In support of his contention that the word debt has to be given a wider meaning he relied on the following paragraphs in, Union of India v. Raman Iron Foundry [1974]3SCR556 . It would be profitable in this connection to refer to the concept of a debt', fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... establish that the dishonoured cheque was not issued for any legally enforceable debt is on the petitioners, in view of the presumption under section 139 of the Act, till disproved by the petitioners it has to be taken that the dishonoured cheque was issued towards a legally enforceable debt. It is his contention that since the dishonoured cheque was drawn for and on behalf of Jagdish Rai Agarwal, HUF, of which the first petitioner is the karta, and since petitioners Nos. 2 to 4 admittedly are the sons of the first petitioner, and since the HUF also would be a company within the meaning of section 141 of the Act, in view of the Explanation to that section, petitioners Nos. 2 to 4, as members of the HUF are also liable for punishment under t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 883] 11 QBD 518 (CA) referred to in Raman Iron Foundry case [1974]3SCR556 it should be taken to refer to a sum of money which is now payable or will become payable in the future by reason of a present obligation. In view thereof the amount payable by the purchaser to the vendor of a property under an agreement of sale can also be treated as a debt especially when possession of the property agreed to be sold was delivered. Therefore, I am not able to agree with the contention of learned counsel for the petitioners that the proceedings have to be quashed because there is no legally enforceable debt in this case, more so because as per section 139 of the Act, the court shall presume that the dishonoured cheque was issued in discharge of a debt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shed on the ground that respondents Nos. 3 and 4 also joined the second respondent in filing the complaint. 8. The next contention of learned counsel for the petitioners relates to nonliability of petitioners Nos. 2 to 4 for an offence under section 138 of the Act in respect of a cheque drawn by the first petitioner. Though ex facie there appears to be force in the contention of learned counsel for the petitioners, on deeper examination, I find force in the contention of learned counsel for respondents Nos. 2 to 4 that since the dishonoured cheque was issued by the first petitioner as karta of the HUF, petitioners Nos. 2 to 4, being the sons of the first petitioner and members of HUF, in view of the Explanation to section 141 of the Act, li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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