| The Tax Publishers 2022 TaxPub(CL) 2914 (Mad-HC) NEGOTIABLE INSTRUMENTS ACT, 1881
Section 138
Drawer filed petition for quashing of proceedings as compromise agreement was void a contract and cheque was issued only for security purpose, but question of issuance of the cheque for discharge of liability could not be gone into by this Court in these proceedings and the same could only be determined during trial of the case, the petition was dismissed.
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Dishonour of cheque - Petition for quashing of proceedings - Issuance of cheque only for security purpose - Jurisdiction to consider question of issuance of cheque for discharge of liability
Cheque holder filed a complaint under section 138 against drawer on the ground that issuance of cheque as per compromise agreement was dishonoured due to insufficient funds. The drawer filed petition for quashing of the proceedings on the ground that the compromise agreement was void a contract. Further, the cheque was issued only for security purpose. Therefore, the cheque was not issued for discharge of legal liability. Held: The drawer has alleged that the agreement is void and that the consideration is illegal, immoral and against public policy, he has not elaborated anything further. The question as to whether the drawer had issued the cheque in dispute as security, pursuant to the compromise agreement entered into between the parties and whether at the time when the cheque was presented, it was not for discharge of any debt or other liability, cannot be gone into by this Court in these proceedings and the same can only be determined during the trial of the case. A perusal of the complaint and other records available, makes out a prima facie case against the petitioner at this stage and there appear to be sufficient ground for proceeding against the petitioner. Thus, the petition was dismissed.
REFERRED :
FAVOUR : Against the petitioner
A.Y. :
IN THE MADRAS HIGH COURT
K. MURALI SHANKAR, J.
K. Ramraj v. Sudarshan
Crl. O.P. (MD) No. 1161 of 2019
29 August, 2022
Petitioner by: K. Veilmuthu
Respondent by: Ka. Ramakrishnan
This Criminal Original Petition has been filed, invoking section 482 Cr.P.C., seeking orders to call for the records pertaining to the case in C.C. No. 202 of 2018, pending on the file of the Judicial Magistrate (Fast Track Court), Thoothukudi District and quash the same.
2. The petitioner is the first accused in C.C. No. 202 2018, on the file of the Judicial Magistrate Court (Fast Track Court), Thoothukudi. The respondent/complainant has filed a private complaint under section 200 Cr.P.C., against the petitioner and a concern by name Threekay Builders represented by its authorised signatory Ramraj - the petitioner herein for the offences under sections 138 and 142 of the Negotiable Instruments Act.
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