9911796707
TMI Blog2006 (1) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... Krishan Sharma ( Complainant for short) in September, 1996 for a loan of rupees one lakh saying that he required this amount to discharge his previous liability with the Bank which will , enable him to get a loan of rupees 4 lakhs from the Bank and that he would repay the amount. The petitioner accordingly advanced rupees one lakh to the accused in cash and the accused in consideration whereof issued him a cheque dated December 13, 1996 drawn on Punjab National Bank, Fozal in the amount of rupees one lakh. The cheque bounced, when the petitioner presented it to the Bank, with the endorsement that the account maintained by the accused with the Bank had been closed. The evidence led by the petitioner shows that the cheque book, from which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for insufficiency, etc., of funds in the account.- Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for [a term which may be extended to two years], or with fine w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rden on the part of the complainant to prove before a Court the entire details of the transactions resulting in issuance of the cheque. As observed by the Apex Court in Kusum Ingots and Alloys Limited v. Pennar Peterson Securities Ltd. 2000CriLJ1464 , the object of bringing Section 138 on statute is to inculcate faith in the efficacy of banking operations and credibility in transacting business on negotiable instruments. Looking to the object of incorporating Chapter-VIII in the Act, the expression, on account maintained by him used in Section 138 of the Act, noticed above, cannot be interpreted to give it an artificial or unrealistic meaning. What the provision says is that the cheque must be drawn on account which the accused maintained w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a word used by the draftsman, particularly in a penal statute, would defeat the object of the legislature, which is to suppress a mischief, the court can depart from the dictionary meaning or even the popular meaning of the word and instead give it a meaning which will advance the remedy and suppress the mischief. 11. Further, while interpreting the statutory provision rule dealing with penalty under the Drugs and Cosmetics Act, 1940 and the rules in the case of Swantraj v. State of Maharashtra, this Court held that every legislation is a social document and judicial construction seeks to decipher the statutory mission, language permitting, taking the one from the rule in Heydon's case of suppressing the evil and advancing the remedy. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eded to observe : 15. In view of the aforesaid discussion we are of the opinion that even though Section 138 is a penal statute, it is the duty of the court to interpret it consistent with the legislative intent and purpose so as to suppress the mischief and advance the remedy. As stated above, Section 138 of the Act has created a contractual breach as an offence and the legislative purpose is to promote efficacy of banking and of ensuring that in commercial or contractual transactions cheques are not dishonoured and credibility in transacting business through cheques is maintained. The above interpretation would be in accordance with the principle of interpretation quoted above brush away the cobweb varnish, and shew the transactions in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mischief of Section 138 of the Act. It is true that NEPC case does not specifically deal with the cheques issued on accounts closed prior to the date of issuance of the cheque. Nevertheless, this case does not indicate that such cases are intended to be taken out of the sweep Section 138 of the Act. In my opinion the expression an account maintained by him necessarily includes an account which was maintained by him, i.e. the account which has been closed as also the account which is still maintained by him . 13. The Supreme Court in N.A. Issac v. Jeemon P. Abraham and Anr. 2005 (1) CCC 690 (SC), interpreted Section 138 of the Act and observed that contention that this provision will not be applicable when the cheque is issued from an alrea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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