SHREYAS AGRO SERVICES PVT LTD Vs. CHANDRAKUMAR

JUDGEMENT

(1.) THE appellant-company was supplying the products on credit to dealers. The respondent-accused is one of the dealers of the appellant. It is said that the cheque Ex. P. 1 issued by the accused for discharge of the credit liability is dishonoured. The statutory legal notice is issued in time. The prosecution is launched within the period of limitation envisaged u/ s. 138 of the N. I. Act.

(2.) THE admitted facts disclose that the accused issued a signed blank cheque in question to the appellant with a liberty to fill up the other necessary particulars. The appellant has filled up the amount due as rs. 1,92,406. 00. But in the cross-examination of P. W. 1, it is admitted that the company has issued circular instructions to all its dealers to deposit signed blank cheques as a security for credit supply. The object of such insistence is to see that if there is a default on the part of the dealer, the company would fill up the cheque showing the amount due as on that day payable by the dealer as a measure for effective recovery of dues.

(3.) THE very scheme of procedure adopted shows that the cheques are not issued in respect of any current existing ascertained liability. The words "for discharge of any debt or other liability" in Sec. 138 of N. I. Act should be interpreted to mean current existing or past ascertained liabilities. The cheque issued in respect of future liabilities not in existence as on the date of cheque would not attract prosecution u/s. 138 of n. I. Act.