M/S ELECTRONICS TRADE AND TECHNOLOGY DEVELOPMENT CORPN., LTD., SECUNDERABAD versus M/S. INDIAN TECHONOLOGISTS AND ENGINEERS (ELECTRONICS) PVT. LTD. ANR.

M/S ELECTRONICS TRADE AND TECHNOLOGY DEVELOPMENT CORPN., LTD., SECUNDERABAD versus M/S. INDIAN TECHONOLOGISTS AND ENGINEERS (ELECTRONICS) PVT. LTD. ANR.

Stoppage of payment by instructions, after the cheque is delivered to the payee and presented to the bank, amounts to dishonour within the meaning of Section 138 of the Negotiable Instruments Act, and the complaint satisfies its ingredients; the High Court's quashing was incorrect.

Parties
Appellant: MIS ELECTRONICS TRADE AND TECHNOLOGY DEVELOPMENT CORPN., LTD., SECUNDERABAD; Respondent: MIS INDIAN TECHNOLOGISTS AND ENGINEERS (ELECTRONICS) PVT. LTD.; Respondent: ANR.
Jurisdiction
India
Judgment Date
22 January 1996
Procedural Posture
Criminal Appeal / Supreme Court Appeal From Andhra Pradesh High Court Judgment
Outcome
Appeals allowed; High Court order set aside.
Legal Topics
Section 138 Negotiable Instruments Act, Dishonour of Cheque, Quashing of Complaint
Criminal Law Banking Law Section 138 Negotiable Instruments Act Dishonour of Cheque Quashing of Complaint

Case Brief

Summary, issues, holding and outcome

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Parties

MIS ELECTRONICS TRADE AND TECHNOLOGY DEVELOPMENT CORPN., LTD., SECUNDERABAD

Appellant

MIS INDIAN TECHNOLOGISTS AND ENGINEERS (ELECTRONICS) PVT. LTD.

Respondent

ANR.

Respondent

Procedural Posture

Criminal Appeal / Supreme Court Appeal From Andhra Pradesh High Court Judgment

Legal Issues

  1. 1 Whether stoppage of payment due to instructions amounts to an offence under Section 138 of the Negotiable Instruments Act
  2. 2 Whether the ingredients of Section 138 have been satisfied in the complaint

Ratio Decidendi

Stoppage of payment by instructions, after the cheque is delivered to the payee and presented to the bank, amounts to dishonour within the meaning of Section 138 of the Negotiable Instruments Act, and the complaint satisfies its ingredients; the High Court's quashing was incorrect.

Court Disposition

Appeals allowed; High Court order set aside.

Orders

  • High Court's order quashing complaint set aside
  • Trial Court directed to dispose of the matter expeditiously