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2020 (10) TMI 530 - HC - Indian LawsDishonor of Cheque - insufficiency of funds - whether entire amount has been settled by the petitioner? - HELD THAT - It is seen the respondent is the complainant who lodged a complaint for the offence punishable under Section 138 of Negotiable Instrument Act as against the petitioner and others. The petitioner herein arrayed as A3 who is representing the first accused company, as Managing Director. On purchase of the Electrical goods, the petitioner and others issued 4 cheques to the tune of ₹ 3,25,687/- to the respondent. All the cheques were returned dishonoured, and the respondent proceeded with the complaint for the offence punishable Under Section 138 of Negotiable Instruments Act. According to the petitioner, pending the complaint the petitioner issued another seven cheques to the tune of ₹ 3,25,689/- and all the cheques were encashed by the respondent. Therefore, the entire dues as alleged in the complainant have been settled by the petitioner and even then, the respondent refused to withdraw the complainant. Whereas, the learned counsel for the respondent would submit that pending the complaint, cheques were issued in respect of other dues pertaining to the cheques in the present case. Therefore, the disputed fact is that the entire amount has been settled by the petitioner. The petition is devoid of merits and dismissed.
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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