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2020 (10) TMI 530 - HC - Indian Laws


Issues:
1. Quashing of proceedings in C.C.No. 490 of 2020.
2. Dispute over settlement of dues under Section 138 of the Negotiable Instruments Act.
3. Interpretation of judgments by the Hon'ble Supreme Court of India in similar cases.

Issue 1: Quashing of Proceedings
The petitioner sought to quash the proceedings in C.C.No. 490 of 2020 on the grounds that the entire due amount of &8377; 3,25,687/- was settled by issuing seven cheques. The respondent, however, continued with the complaint despite the repayment. The respondent argued that the settlement was only for a different purchase and disputed the amount settled by the petitioner. The High Court examined the records and noted that the cheques issued by the petitioner were encashed, but there was a dispute regarding whether the entire amount had been settled. The Court considered the facts and legal arguments presented by both parties.

Issue 2: Dispute Over Settlement of Dues
The core issue revolved around the settlement of dues under Section 138 of the Negotiable Instruments Act. The respondent lodged a complaint against the petitioner and others for dishonoring cheques worth &8377; 3,25,687/-. The petitioner contended that seven additional cheques totaling &8377; 3,25,689/- were issued and encashed, settling the entire amount. However, the respondent disputed this claim, stating that the additional cheques were for a different purchase, and the dues for the initial complaint were not settled. The Court analyzed the transactions, acknowledgments, and contentions of both parties to determine the validity of the settlement and the continuation of the complaint.

Issue 3: Interpretation of Supreme Court Judgments
The High Court referenced relevant judgments by the Hon'ble Supreme Court of India in similar cases to guide its decision. The judgments highlighted the limitations of the Court's jurisdiction in appreciating witness statements and disputed facts during Section 482 proceedings. The Court emphasized that such assessments should be reserved for trial or appellate stages, not during petition hearings. By citing these judgments, the High Court underscored the importance of focusing on the legal aspects and complaint contents rather than delving into evidentiary disputes at the petition stage. Consequently, the Court dismissed the petition, directing the petitioner to address all grounds before the Trial Court in accordance with the law, aiming for a timely resolution within nine months.

In summary, the High Court of Madras deliberated on the quashing of proceedings, the dispute over settlement of dues under the Negotiable Instruments Act, and the interpretation of relevant Supreme Court judgments. The Court carefully examined the facts, legal contentions, and precedents to reach a decision, ultimately dismissing the petition and directing the petitioner to address all issues before the Trial Court.

 

 

 

 

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