2019 (2) TMI 2102 - HC - Indian Laws

Dishonour of Cheque - share transfer took place or not - whether cheque amount was part payment given by respondent-complainant to accused-company or not - HELD THAT - The stand taken by petitioner is refuted by respondent s counsel who submits that the stand taken on behalf of petitioners pertains to the merits of this case, which cannot be pre-judged and is required to be considered after the evidence is recorded by trial court. This court is of the prima facie opinion that the averments made in the complaints in question and the agreement between the parties, justifies summoning of petitioner and no case to quash complaints in question and the summoning order is made out. These petitions and the applications are disposed of with liberty to petitioners to raise the pleas taken herein, before the trial court at the appropriate stage.

Summary

Issues: Quashing of complaints and summoning orders under Section 138 of Negotiable Instruments Act, 1881 for dishonor of cheques amounting to ?25 lacs.

Analysis:
- The judgment involves three petitions seeking the quashing of complaints and summoning orders related to the dishonor of cheques worth ?25 lacs each. The petitions were heard together and disposed of by a common order.

- The petitioner argued that the cheques were issued for purchasing shares, which were never transferred to them. They relied on a Supreme Court decision to support their plea for quashing the complaints and summoning orders.

- In contrast, the respondent contended that the cheques were part payment for an unsecured loan given to the accused company. They referred to an email and financial statements to justify proceeding with the complaints.

- After considering the arguments, complaints, summoning order, and the cited decision, the court found that the respondent's counsel's stance was more convincing. The court opined that the merits of the case should be determined during trial and that there was no ground to quash the complaints or summoning orders at this stage.

- Consequently, the petitions were disposed of, allowing the petitioners to raise their arguments in the trial court at the appropriate time. The court refrained from commenting on the case's merits while upholding the summoning of the petitioners based on the complaints and agreement between the parties.