Construction Agreement - termination - Cheque issued for refund - dishonoured - offence under section 138 attracted.

Citation

AIR 2016 SUPREME COURT 740

2016(1) MWN (cr) DCC 69

SUPREME COURT

(From : Gauhati)

T. S. THAKUR , C.J.I. and KURIAN JOSEPH , J.

Criminal Appeal Nos. 82-83 of 2016 (arising out of SLP (Cri.) Nos. 4517-4518 of 2014), D/- 28 -1 - 2016

Don Ayengia v. The State of Assam and Anr.

Negotiable Instruments Act (26 of 1881), S.138 - Cheque dishonour - Cheque issued whether in

discharge of 'any debt or other liability' - Agreement between parties wherein cheques issued

by complainant to one 'N' - Upon termination of agreement amount paid to 'N' was refundable

to complainant - Promissory note executed by 'N' contained an unequivocal acknowledgment

of not only debt/liability aforementioned but promise to liquidate same within one month with

interest at bank rate - Five cheques handed over to complainant were to be returned but only

upon payment of amount in question - It cannot be said that cheques had nothing to do with

any debt or other liability - Words 'security' qua cheques used in promissory note - Imply that

once amount was paid, cheques shall have to be returned - There would be no reason for their

rentention by complainant or for their presentation - Endorsement made by respondent on

promissory note that cheques can be presented on date mentioned - Failure on part of 'N' to

liquidate liability within one month - Dishonour of cheque on grounds of insufficiency of funds

- Conviction of respondent who acknowledged to liquidate debt owned by 'N' - Proper. Cri.

Revision No. 41 of 2012 , D/- 02-04-2014 (Assam), Reversed.

 (Paras 11 , 12)