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TMI Blog2024 (1) TMI 507X X X X Extracts X X X X X X X X Extracts X X X X ..... charge full or partial pre-existing debt liability. It is not be the pre-requisite of Section 138 of the N.I. Act to plead evidence in the complaint itself. Once a specific plea has been taken, it can be later on substantiated by adducing evidence at an appropriate stage. On a reading of paragraph 3 of the complaint, the appellant has made the necessary averments in order to prima facie attract the consequences under provisions of the N.I. Act. The High Court, thus, fell in error in misconstruing the averments made in the complaint(s). The impugned order dated 17.07.2019 of the High Court is set aside and all the five complaints filed by the appellant against the respondents under Sections 138, 141 and 142 of the Negotiable Instrument (A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... debt or liability. The High Court has in this regard referred to paragraph no.3 of the complaints, which are similarly worded, and consequently held that in the absence of necessary averments in the complaint regarding the nature of transaction between the parties, the proceedings under Section 138 of the N.I. Act were liable to be quashed. 5. Learned senior counsel for the appellant refers to paragraph 3 of the complaint in the lead case, which reads as follows: 3. That complainant and accused were known to each other and both parties had substantial business transactions and in lieu of the business correspondence and financial transactions complainant company had sent payments to accused persons through RTGS and in discharge of p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ain is such factual averments as are necessary to satisfy the ingredients of the said provision, namely, that the cheque/money bill which has been dishonoured was issued to discharge full or partial pre-existing debt liability. It is not be the pre-requisite of Section 138 of the N.I. Act to plead evidence in the complaint itself. Once a specific plea has been taken, it can be later on substantiated by adducing evidence at an appropriate stage. On a reading of paragraph 3 of the complaint, we are satisfied that the appellant has made the necessary averments in order to prima facie attract the consequences under provisions of the N.I. Act. The High Court, thus, fell in error in misconstruing the averments made in the complaint(s). 8. For ..... X X X X Extracts X X X X X X X X Extracts X X X X
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