2021 (11) TMI 825 - HC - Indian Laws

Dishonor of Cheque - discharge of legally enforceable debt or not - rebuttal of presumption - HELD THAT - There is no dispute with the proposition of law that the Court in exercise of its inherent powers will not lightly interfere where the Court may have to analyze the factual aspects of the case in detail and is required to deal with the defense that may or can be taken otherwise by the party in the proceedings. The proceedings in any given case are abuse of process of law or not depends upon the facts and circumstances of each case. In the case in hand, the precise submission made on behalf of the petitioner is that the cheque amounting ₹ 7,40,000/- subject matter of the complaint was though issued to the respondent initially yet on the asking of the respondent in lieu of the said cheque two more cheques of ₹ 3,70,000/- each were issued to the respondent and further the cheque ₹ 7,40,000 though returned by the respondent to the petitioner was again stolen by him after the amounts of two cheques were withdrawn by the respondent - The Court is of the considered view that the transaction as presented by the petitioner in the present has infact happened or meant to take place in that manner cannot be determined or commented upon by this Court in the present proceedings. The exact nature of liability can be brought on record by the complainant during the trial. It cannot be denied that there is a presumption in favour of the holder of the cheque that the cheque is issued in the discharge of some liability. Of course, the presumption can be rebutted by the author of the cheque. The petitioner herein can raise all the pleas which he has taken in the present petition before the trial but cannot agitate the same before this court in the present petition. The petition is dismissed.

Summary

Issues:
Quashment of complaint under Section 138 of Negotiable Instrument Act and 420 RPC, order dated 04.09.2013 by JMIC Kathua, liability of petitioner towards respondent, issuance and encashment of cheques, theft of cheque by respondent, abuse of process of law, maintainability of petition, presumption of liability with issuance of cheque, interference by Court in proceedings, factual nature of issues, nature of liability in complaint, mechanical passing of order by Magistrate.

Analysis:
The petitioner sought quashment of a complaint under Section 138 of the Negotiable Instrument Act and 420 RPC, along with the order dated 04.09.2013 by the JMIC Kathua, alleging that the respondent, related to the petitioner, received cheques for construction work supervision but later stole a cheque after encashing two others. The petitioner claimed no additional liability towards the respondent beyond the initial cheque amount. The respondent argued that the petition lacked a prima facie case for quashment, emphasizing the presumption of liability with cheque issuance. The Court noted that interference is warranted if proceedings are unjust, but factual issues should be determined at trial.

The petitioner contended that the cheques issued were in lieu of an earlier one, and the stolen cheque incident was not coincidental, indicating abuse of process. However, the Court held that factual issues could not be resolved at this stage. The respondent's complaint mentioned a liability of ?17 lakhs, including the cheque in question, with the nature of liability to be clarified during trial. The Court upheld the presumption of liability with cheque issuance, stating that the petitioner could present defenses during trial but not in the present petition.

Moreover, the petitioner argued that the Magistrate's order was mechanical, but the Court found it appropriate upon review. Ultimately, the Court dismissed the petition, allowing the petitioner to raise defenses in the trial court. The decision highlighted that detailed orders by the Magistrate were not mandatory for issuing process. The parties were directed to appear before the trial court on a specified date for further proceedings, emphasizing the need to address legal matters in the appropriate forum.