MAGNUM AVIATION PVT LTD Vs. STATE

JUDGEMENT

(1.) This petition has been preferred against an order dated 2nd September, 2008 passed by learned Additional Sessions Judge on a revision petition filed by the respondent (petitioner herein) assailing summoning order under Section 138 of Negotiable Instruments Act.

(2.) Learned Additional Sessions Judge set aside the summoning order on the ground that the cheques issued by the respondent at the time of entering into contract for supply of equipment were not the cheques issued against any debt or liability which existed as on the date of issuance of cheques since supplies were to be made later on. Thus, the presumption envisaged under Section 139 of Negotiable Instruments Act (hereinafter referred to as "the Act") stood rebutted and the ingredients of Section 138 of the Act were not attracted. So, the respondent could not be summoned.

(3.) Brief facts relevant for the purpose of deciding this petition are that on 19th February, 2007 and on 26th February, 2007, respondent placed two separate purchase orders upon the petitioner after finalization of terms and conditions of the contract for supply of aircraft parts. One of the term and condition of the contract was that the entire payment would be given to the petitioner in advance as the petitioner had to procure the parts from abroad. Under this contract two cheques dated 15th March, 2007 and 20th March, 2007 were given to the petitioner. These cheques got dishonoured when they were presented to the bank on the ground that respondent had stopped payment. The petitioner received a letter dated 22nd March, 2007 from the respondent which reads as under :-