2022 (2) TMI 1475 - SCH - Indian Laws

Dishonour of Cheque - account frozen - respondent contends that there is no reason to continue the trial as the Appellant has not made out a case Under Section 138 of the Negotiable Instruments Act, 1881 - HELD THAT - After perusing Annexure P-2, it is surprising that on the one hand, the Bank Managers have specifically deposed that no such bank account was opened and maintained in their bank while on the other hand the cheque drawn by the Respondent in favour of the Appellant, was returned with the remark Account Frozen in respect of the same cheque. The bank account has been mentioned on the cheque and the endorsement to the effect Account Frozen will presuppose that an account existed. This is a matter which is to be taken into consideration by the trial court in detail, and not merely on the evidence of DW2 and 3. The parties will have to go through a full-fledged trial. In any event, it was not a matter the proceedings could have been quashed. The trial court is directed to restore and take up the matter in Case No. 3091/2013 and conclude the same in accordance with law expeditiously and preferably within a period of six months from the date of receipt/production of a copy of this order - appeal disposed off.

Summary

The Supreme Court allowed the appeal against the High Court's order quashing proceedings in a case under Section 138 of the Negotiable Instruments Act. The Court directed the trial court to resume the case and conclude it within six months.