DON AYENGIA versus THE STATE OF ASSAM & ANR

DON AYENGIA versus THE STATE OF ASSAM & ANR

The cheques were issued pursuant to an acknowledged debt and liability to pay Rs.10,00,000/- within one month, supported by the promissory note and respondent's endorsement. Presentation of cheques upon failure to pay constitutes an actionable offence under Section 138. The High Court erred in setting aside the conviction as the cheques had a direct nexus with the liability.

Parties
Appellant/complainant: Don Ayengia; Respondent No.2/accused: Haren Mudoi; Respondent No.1 (deceased)/accused: Nazimul Islam
Jurisdiction
India
Judgment Date
28 January 2016
Procedural Posture
Criminal Appeal / Supreme Court Review of High Court Judgment
Outcome
Appeal allowed; High Court judgment set aside to the extent it allowed Criminal Revision No.41 of 2012; conviction and order of appellate court restored.
Legal Topics
Dishonour of Cheques, Section 138 Negotiable Instruments Act, Promissory Notes
Criminal Law Banking Law Dishonour of Cheques Section 138 Negotiable Instruments Act Promissory Notes

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Parties

Don Ayengia

Appellant/complainant

Haren Mudoi

Respondent No.2/accused

Nazimul Islam

Respondent No.1 (deceased)/accused

Procedural Posture

Criminal Appeal / Supreme Court Review of High Court Judgment

Legal Issues

  1. 1 Whether cheques issued by the respondent were meant to discharge any debt or liability within the meaning of Section 138 of the Negotiable Instruments Act, 1881
  2. 2 Whether respondent had liability under Section 138 for dishonour of cheques given as security
  3. 3 Whether post-dated cheques issued for refund of an advance are actionable under Section 138

Ratio Decidendi

The cheques were issued pursuant to an acknowledged debt and liability to pay Rs.10,00,000/- within one month, supported by the promissory note and respondent's endorsement. Presentation of cheques upon failure to pay constitutes an actionable offence under Section 138. The High Court erred in setting aside the conviction as the cheques had a direct nexus with the liability.

Court Disposition

Appeal allowed; High Court judgment set aside to the extent it allowed Criminal Revision No.41 of 2012; conviction and order of appellate court restored.

Orders

  • Order passed by appellate court restored against respondent; compensation to complainant reaffirmed; no costs imposed.