9911796707
TMI Blog1994 (8) TMI 320X X X X Extracts X X X X X X X X Extracts X X X X ..... a sum of Rs. 1,00,000/- from the appellant for purpose of their business, promising to repay the same within a short time. Respondents 1 and 2 became liable in a sum of Rs. 1,18,337/- in respect of the said transaction and issued a cheque drawn on 'Karur Vysya Bank, Rastrapathi Road, Secunderabad for the said amount with an understanding to present the said cheque on 15-1-91. 3. The appellant-complainant presented said the cheque on 15-1-91, but it was returned for want of sufficient funds. The appellant then contacted the respondents on telephone and demanded for payment of the amount for which the cheque was issued. Then the respondents promised to arrange for payment in a short time. So, the appellant waited for two months and again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % per annum. At that lime, the complainant got an account opened in the name of the respondents in Karur Vysya Bank and the cheque for Rs. 96,500/- was adjusted towards that account. It was stipulated that, respondents 1 and 2 should pay interest every month to the appellant-complainant. The appellant also took a blank signed cheque from respondents 1 and 2 as security for payment of interest every month. It was understood that if the respondents fail to pay interest as stipulated, the appellant can present the cheque in the Bank for the amount due by that date under the pronote. The respondents paid the interest of Rs. 1,667/- every month for about 8 months. Thereafter, they stopped payment. By 15-1-91 a sum of Rs. 18,337/- was due from th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the appellant-complainant so as to attract the provisions of section 138 of the Act. 2) The second ground was that the cheque was drawn in the month of July, 1989 and that therefore, the said cheque was presented beyond six months from the date on which it was drawn and that therefore, the provisions of section 138 of the Negotiable Instruments Act apply as mentioned in proviso (a) to section 138. 3) The other ground was that the cheque when issued did not contain the date, the name of the payee and amount for which it was drawn and it was only a blank cheque containing the signature of the respondents and that therefore, it is not a valid cheque as envisaged under section 138 of the Negotiable Instruments Act. 5. For the above reas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bt or liability. It was certainly issued for discharge of the debt due under the pronote that the cheque was issued. 7. The other ground is that the cheque was drawn some time in the month of July, 1989 and it was presented in the month of March, 1991, i.e. beyond the period of six months from the date on which it was drawn and that, therefore, the provisions of Section 138 do not apply in view of proviso (a) to that section. Now, it is settled that the date, which the cheque bears should be treated as the date on which it was drawn. In the instant case, the cheque bears the date 15-1-1991 and as the same was presented in the month of March, 1991, it cannot be said that the cheque was presented beyond the period as envisaged under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dents should pay interest every month. At the same time appellant-creditor took a blank signed cheques from the respondents with the understanding that the complainant could fill the other columns in the cheque and present it if the respondents committed default in payment of interest. The respondents paid interest for about 8 months and thereafter stopped payment of interest. Then the appellant put the date as 15-1-91, wrote his own name in the space intended for the payee and also mentioned amount as Rs. 1,18,337/- and presented the cheque. Even at the time when he presented the cheque, he would not have expected that the cheque would be honoured. He was presenting the cheque only with a view to get an endorsement which would enable him t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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