MANUFACTURING COMPANY LIMITED HYDERABAD Vs. DINESH GUPTA

JUDGEMENT

(1.) (At the Admission Stage) By the time the cheque was presented, the account was seized by the Sales Tax Authorities. Therefore, when the account was seized by the statutory authority, it cannot be said that the accused has committed an offence punishable under Section 138 of the Negotiable Instruments Act on the ground that there is insufficiency of funds or that he has not arranged for honouring the cheque. So, the view taken by the Magistrate that the account was seized by the sales tax authorities by the time the cheque was presented is correct. So far as the view taken in respect of the endorsement 'refer to drawyer" following the decision of this Court is not correct. That decision has been overruled. Refer to the drawyer means there are no funds in the account and it has been returned and it is an offence punishable under Section 138 of the Negotiable instruments Act.

(2.) APPEAL is, therefore, dismissed.