REKHA SINGH Vs. STATE OF JHARKHAND

JUDGEMENT

(1.) Heard learned counsel appearing for the petitioner and learned counsel appearing for the opposite party No. 2 as well as learned counsel appearing for the State. This application has been filed for quashing of the order dated 17.7.2012 passed in C.P. Case No. 1041 of 2012, whereby and whereunder cognizance of the offence punishable under Section 138 of the N.I. Act has been taken against the petitioner.

(2.) It is the case of the complainant that the complainant as well as the petitioner were partners in a company. In course of time, the complainant resigned from the partnership company and then there was settlement in between the petitioner and the complainant, whereby a sum of Rs. 23,00,000/- [Twenty Three Lakhs] was to be paid to the complainant. In discharge of that liability, a cheque of Rs. 23,00,000/- [Twenty Three Lakhs] was issued by the complainant from his own account, which on its deposit, got dishonoured with endorsements as insufficient fund, stop payment and payment stop. Thereupon, a notice was sent to the petitioner by which the petitioner was called upon to make payment. When the payment was not made, a complaint was lodged, which was registered as Complaint Case being C.P. Case No. 1041 of 2012, in which cognizance for the offence punishable under Section 138 of the N.I. Act has been taken against the petitioner vide order dated 17.7.2012 which is under challenge in this application.

(3.) Mr. Banerjee, learned counsel appearing for the petitioner submits that in terms of the provision as contained in Section 138 of the N.I. Act, one may bring a case for commission of the offence under Section 138 of the N.I. Act, if the cheque given by a person towards discharge of debt is returned by the Bank for the reason that there has been insufficiency of money or that it exceeds the amount arranged to be paid from that account by an agreement made with that Bank, but here the cheque has been returned on account of the fact that the petitioner when lost the cheque advised the Bank not to make payment and that was the reason for cheque being not honoured and in this situation, no offence is made out under Section 138 of the N.I. Act.