BAL KRISHNAN SHARMA Vs. TEK RAM

JUDGEMENT

(1.) Would a cheque issued after the date of closure of an account in a Bank fall within the mischief of Section 138 of the Negotiable Instruments Act ("Act" for short) is the question which calls for an answer in this petition.

(2.) Undisputed facts necessary for the disposal of this petition are : The respondent Tek Ram, hereinafter referred to as the ("accused") approached the petitioner Bal Krishan Sharma ("complainant" for short) in September, 1996 for a loan of rupees one lakh saying that he required this amount to discharge his previous liability with the Bank which will enable him to get a loan of rupees 4 lakhs from the Bank and that he would repay the amount. The petitioner accordingly advanced rupees one lakh to the accused in cash and the accused in consideration whereof issued him a cheque dated December 13, 1996 drawn on Punjab National Bank, Fozal in the amount of rupees one lakh. The cheque bounced, when the petitioner presented it to the Bank, with the endorsement that the account maintained by the accused with the Bank had been closed.

(3.) The evidence led by the petitioner shows that the cheque book, from which the cheque in question was drawn, was issued in favour of the accused. This account was maintained by the accused in the name of "Jawala Furniture Works Association" and was closed by the accused on September 16, 1994, i.e., prior to the issuance of the cheque to the petitioner.