2012 (3) TMI 669 - HC - Indian Laws

Summary

Issues Involved:
1. Quashing of the complaint u/s 482 of the Code of Criminal Procedure.
2. Enforceability of debt at the time of cheque deposit.
3. Legality of a blank cheque filled later.
4. Allegation of cheque misuse.

Summary:

1. Quashing of the complaint u/s 482 of the Code of Criminal Procedure:
The applicants-original accused sought to quash the complaint filed u/s 138 r/w 141 of the Negotiable Instruments Act for dishonour of a cheque. The High Court dismissed the application, stating that the complaint cannot be quashed at this stage as the issues raised by the applicants are matters of evidence to be considered during the trial.

2. Enforceability of debt at the time of cheque deposit:
The applicants argued that the cheque was for a time-barred debt and thus not legally enforceable. The Court held that whether the debt was legally enforceable at the time of cheque deposit is a matter to be determined at trial. The presumption u/s 139 r/w 118 of the N.I. Act that the cheque was issued for a legally enforceable debt is rebuttable and must be addressed during the trial.

3. Legality of a blank cheque filled later:
The applicants contended that the cheque was a blank instrument filled in later by the complainant, thus not constituting a valid cheque or Bill of Exchange. The Court referred to Section 20 of the N.I. Act, which allows the holder of an incomplete instrument to fill in the blanks and make it complete. The Court concluded that the cheque, even if initially incomplete, could be completed by the holder and thus valid for the purposes of Section 138 of the N.I. Act.

4. Allegation of cheque misuse:
The applicants claimed that the cheque was stolen and misused by the complainant. The Court stated that such defenses are to be considered at the time of trial and not at the stage of quashing the complaint. The Court emphasized that the primary consideration at this stage is whether the cheque was issued and dishonoured, not the defenses of the accused.

Conclusion:
The High Court dismissed the application to quash the complaint, stating that the issues raised by the applicants are to be addressed during the trial. The presumption of a legally enforceable debt u/s 139 r/w 118 of the N.I. Act stands unless rebutted by evidence during the trial. The defenses regarding the blank cheque and alleged misuse are also to be considered at trial. The trial court's decision to issue summons/process for the offence u/s 138 r/w 141 of the N.I. Act was upheld.