Every negotiable instrument was made or drawn for consideration, and that every such instrument, when it has been accepted, endorsed, negotiated or transferred, was accepted, endorsed, negotiated or transferred for consideration - suit seeking declaration that the cheque issued in the name of the appellant was a security - such reliefs are barred by law

Case Name: M/s. Frost International Limited v. M/s. Milan Developers And Builders (P) Limited And Anr.

Citation: 2022 LiveLaw (SC) 340

Case No. and Date: Criminal Appeal No. 1689 of 2022 | 1 April 2022

Corum: Justices M.R. Shah and B.V. Nagarathna

Headnotes

Section 118(a) of the Negotiable Instruments Act, 1881 - presumption as to negotiable instruments - every negotiable instrument was made or drawn for consideration, and that every such instrument, when it has been accepted, endorsed, negotiated or transferred, was accepted, endorsed, negotiated or transferred for consideration

Section 41(b) and (d) of Specific Relief Act, 1963 - injunction can be refused when sought to restrain any person from institution or prosecuting any proceedings in a court not subordinate to that from which the injunction is sought - injunction can be refused when sought to restrain any person from instituting or prosecuting any proceeding in a criminal matter

Order VII Rule 11 CPC - suit seeking declaration that the cheque issued in the name of the appellant was a security and the appellant had no right to encash it - in essence, the suit attempts to frustrate the possibility of the appellant initiating action under the provision of the NI Act for dishonour of cheque - such reliefs are barred by law - revisional court was just in allowing application under Order VII Rule 11 seeking rejection of plaint.