'Stop payment' instructions - Cheque on presentation to Bank being dishonoured - Accused liable to be convicted - director of company liable.

Citation

AIR 2004 SUPREME COURT 408

2004(2) SCC 235

SUPREME COURT

(From : 1996 Cri LJ 2344 (Bombay))

B. P. SINGH , J. and DR . AR. LAKSHMANAN , J.

Criminal Appeal No. 1968 of 1996, D/- 20 - 11 - 2003

Goa Plast (P) Ltd Appellant v. Chico Ursula D'Souza Respondent.

(A)Negotiable Instruments Act (26 of 1881), S.138, S.139, S.142 - Dishonour of cheque - For

issuing 'Stop payment' instructions there must be funds in the accounts - Reasons for stopping

payment, however, can be manifold - Accused must have sufficient funds in account on date

of signing presentation of cheque; date of letter to complainant denying liability to pay sum

and date on which stop payment instructions were issued to Bank - Non-examination of Bank

Manager to ascertain whether or not there was sufficient amount in account for payment,

erroneous - Cheque on presentation to Bank being dishonoured - Accused liable to be convicted.

 (Para 13) 

(B)Negotiable Instruments Act (26 of 1881), S.139 - Presumption that cheque is issued in

discharge of debt or liability - Whether rebutted - Accused M.D. of complainant company when

liability arose - Admitted of his liability but stated that he was not responsible for it - Letter

of accused denying liability and that some other person is liable for it - Not sufficient to rebut

presumption in absence of evidence - Liability was a legally enforceable debt or liability as

per the explanation - Therefore, relationship of master servant or mercantile relation between

company and accused - Not material - Accused shall be deemed to have committed offence.

 (Paras 12 , 13 , 14 , 16 , 24) 

Cases Referred Chronological Paras

Goa Plast (P) Ltd. v. Chico Ursula D'souza : AIR 2003 SC

2035 : 2003 AIR SCW 1555 : 2003 Cri LJ 1723 : 2003 CLC

466 : (2003) 3 SCC 232

21

Cases Referred Chronological Paras

Ashok Yeshwant Bedave v. Surendra Madhavrao

Nighojakar : AIR 2001 SC 1315 : 2001 AIR SCW 1099 :

2001 Cri LJ 1674 : 2001 CLC 439 : (2001) 3 SCC 726

21

Hitem P. Dalal v. Bratindranath Banerjee : AIR 2001 SC

3897 : 2001 AIR SCW 3861 : 2001 Cri LJ 4647 : 2001 CLC

1646 : (2001) 6 SCC 16

19

K. N. Beena v. Muniyappan : AIR 2001 SC 2895 : 2001 AIR

SCW 4344 : 2001 Cri LJ 4745 : 2001 CLC 1754 : (2001) 8

SCC 458

20

M.M.T.C. Ltd. v. Medchl Chemicals and Pharma (P) Ltd. :

AIR 2002 SC 182 : 2001 AIR SCW 4793 : 2002 Cri LJ 266

: 2002 CLC 146 : (2002) 1 SCC 234

22

Modi Cements Ltd. v. Kuchil Kumar Nandi : AIR 1998 SC

1057 : 1998 AIR SCW 842 : 1998 Cri LJ 1397 : (1998) 3

SCC 249

18, 21

1

© Copyright with AIR Infotech & All India Reporter. All rights reserved