RAJINDER STEELS LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) The petitioners have filed this writ petition under Article 226 of the Constitution of India for issuance of an order/directions thereby holding that Chapter XVII of the Negotiable Instruments Act as incorporated by Section 4 of the Banking, Public Financial Institution and Negotiable Instrument Laws (Amendment Act) 1988 (66 of 1988) is ultra vires to the Constitution and rule making powers of the Legislature and/or in the alternative to issue an appropriate writ or order for direction holding that Section 138 of the Negotiable Instruments Act, 1881 (hereinafter called as Act) is ultra vires of objects of the amending Act and/or issue a declaration that Section 138 of the Negotiable Instruments Act, 1881 (hereinafter called as Act) is not applicable to the post-dated cheques which are issued beyond the period of six months from the date when it is drawn.

(2.) The petitioners have approached this Court because a complaint under Section 138 of the Negotiable Instruments Act against them have been filed by respondent No. 3 before the Metropolitan Magistrate, Patiala House, New Delhi. In this petition the Court has been called upon to decide only the constitutional validity of these provisions, therefore, it is not necessary to recapitulate the detailed facts of this case. According to the petitioners this petition raises the following questions of law :

(3.) If may be pertinent to mention that by the Banlong Public Financial Institutions and Negotiable Instrument Laws (Amendment Act) 1988 (66 of 1988) & new Chapter being Chapter XVII was added in the Negotiable Instruments Act, 1881 containing Section 138 to Section 142. For convenience, these sections are reproduced as under :