RAJ CHAWLA Vs. P N KAPOOR

JUDGEMENT

(1.) This petition under Section 482 Criminal Procedure Code is directed against the order dated 4/01/2000 passed by Ms.Barkha Gupta, M.M. Patiala House, New Delhi summoning the petitioner holding that, prima facie, a case u/s. 138 of Negotiable Instrument Act is made out against him. Learned counsel for the petitioner argued that in the complaint there is no averment to the effect that- the cheque in question was dishonoured due to insufficiency of funds or to show that petitioner's account did not have the necessary funds to honour the cheque in question. Therefore, no cognizance could be taken on such complaint. Learned counsel for respondent No.1 argued to the contrary.

(2.) Law in this regard is well settled, merely because payment of the cheque was stopped -it. would not disentitle the beneficiary from initiating proceedings u/s. 138 of Negotiable Instruments Act, The Supreme Court in Modi Cement Ltd. Vs. K.K.Nandi AIR 1998 so 1057 had held;

(3.) In this case, cheque, in question was dishonoured initially because of insufficiency of funds. In support of the complaint CW-2 Ashok Kumar , official from the Bank was examined, who categorically stater! that the cheque in question was dishonoured due to insufficiency of funds. However, subsequently On the instructions of the petitioner, cheque was dishonoured due to stop payment. Relevant portion of the statement of Cw-2 reads as under:-