IMTIYAZ AHMED BHAT Vs. FIL INDUSTRIES LTD

JUDGEMENT

(1.) The fate of petition on hand hinges on answer to the following two questions:--

(2.) The petitioner in the present petition, admittedly has business relationship with the respondent Company registered under Company's Act, 1956 having its head office at Sheikh Bagh, Srinagar and Branch Office at Sopore, Jammu & Kashmir.

(3.) The petitioner on 23.12.2010 drew a cheque No. 3855999 for an amount of Rs. 29,58,746 drawn on Jammu & Kashmir Bank Ltd. Branch, Imamsahib Shopian, in favour of the respondent. The respondent handed over the cheque to United Commercial Bank, Branch Sopore, for its collection from the drawee bank i.e Jammu & Kashmir Bank, branch Imam Sahib, Shopian. The United Commercial Bank, the collecting bank in the present case, on 10.01.2011, informed the respondents that the cheque had bounced and on 04.01.2011 the drawee bank refused the payment on the ground of "in sufficiency of funds" and "payment stopped by the Drawer".