No endorsement had been made on overleaf of cheque by payee thereby enabling complainant to possess same in his own name so as to receive contents thereof from accused - Complainant could not be considered to be holder in due course.

Citation

2010 CRI. L. J. 3323

MADRAS HIGH COURT

(Principal Seat at MADRAS)

MRS . ARUNA JAGADEESAN , J.

Cri. Appeal Nos. 134 and 135 of 2002, D/- 20 - 1 - 2010

M/s. Jayaram Finance, Kancheepuram and Anr v. Jayaprakash

Negotiable Instruments Act (26 of 1881), S.138, S.50 - Dishonour of cheque - Holder in due

course - Who is - No endorsement had been made on overleaf of cheque by payee thereby

enabling complainant to possess same in his own name so as to receive contents thereof from

accused - Complainant could not be considered to be holder in due course - Further more payee

was not examined to prove that consideration was passed to payee at time of transfer and it

was given in lieu of debt.

 (Para 10) 

Cases Referred Chronological Paras

2007 (2) MWN (Cri) 80 DCC 7

2006 (2) TNLR 633 (Mad) 7

2005 (1) DCR 323 (Mad) 7

R. Rajasekaran, for Appellants; V. Sairam, for Respondent.