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Issues:
1. Applicability of section 138 of the Negotiable Instruments Act, 1881 to the complaint filed. 2. Privity of contract between the complainant and the accused. 3. Presentation of post-dated cheques within the specified time period. 4. Interpretation of the provisions of section 138 of the Negotiable Instruments Act, 1881 regarding post-dated cheques. Analysis: 1. The respondent filed a complaint under section 138 of the Negotiable Instruments Act, 1881, against the petitioners for dishonoring two post-dated cheques drawn in favor of another party. The complaint alleged that the cheques were discounted with the respondent, and when presented for payment, they were dishonored by the bank. The court noted that the wording of section 138 does not restrict the right to maintain the action only to the payee named in the cheque, allowing either the payee or the holder in due course to pursue legal action. 2. The petitioners sought to quash the complaint, arguing that there was no privity of contract between them and the complainant, as the cheques were drawn only in favor of another party. However, the court held that under section 138 of the Act, the offense is committed when a cheque issued for the discharge of a debt is dishonored due to insufficient funds or exceeding the arrangement with the bank. The court dismissed the petitioners' claim, emphasizing that the wording of the Act allows for action by either the payee or the holder in due course. 3. One condition for the application of section 138 is that the cheque must be presented to the bank within six months from the date it is drawn or within its validity period. The petitioners argued that since the cheques were post-dated, the presentation date exceeded six months from the date of issuance. However, the court clarified that the crucial date for determining the offense is the presentation date, not the date of dishonor. Citing a Supreme Court decision, the court explained that post-dated cheques become actionable instruments on the date written on them, and the six-month period is calculated from that date. 4. The court referred to a Supreme Court decision that post-dated cheques are considered bills of exchange until they become actionable cheques on the date specified. The provisions of section 138 come into effect only when the post-dated cheques are presented to the bank and subsequently dishonored. The court emphasized that the interpretation of section 138 should align with the objective of the Act, deeming post-dated cheques as drawn on the date they bear. Consequently, the court dismissed the criminal petition, upholding the applicability of section 138 to the case and directing the records to be sent to the trial court for further proceedings.
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