NEGOTIABLE INSTRUMENTS ACT, 1881

Section 138

Dishonour of cheque for insufficiency, etc., of funds in the account - Dismissal of section 138 complaint on ground of discrepancies in figures of amount due - Justifiability -

Respondent purchased apple crops from appellant/complainant and issued cheque to complainant towards final settlement. However, said cheque was dishonoured. Thus, appellant filed a complaint against respondent under section 138. Trial Court dismissed the complaint for the reason that cheque amount was more than the amount alleged on the due date when cheque was presented. Therefore, the cheque could not be said to be drawn towards discharge of whole or in part of any debt. High Court also upheld the order of the Trial Court. Therefore, instant appeal was preferred before Supreme Court. Held: It was observed that once agent of respondent had admitted settlement of due amount and in absence of any other evidence, Trial Court or High Court could not dismiss complaint only on account of discrepancies in determination of amount due or oral evidence in amount due when written document crystalized amount due for which cheque was issued. Thus, approach of the Trial Court and the High Court was perverse, irrational as well as suffered from material illegality.

REFERRED :

FAVOUR : In favour of appellant.

A.Y. :

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