Lawstreet Journal

Cheque Not Valid If Amount Written Is Uncertain under Sec 138 NI Act: Delhi HC

Lawstreet Journal 5 Aug 2020 5:59pm

Image courtesy: Lawstreet Journal Judiciary Cheque Not Valid If Amount Written Is Uncertain under Sec 138 NI Act: Delhi HC

A revision petition was filed for setting aside the order passed by Ld. MM in the case of ‘M/s Laxmi Dyechan v.  State of Gujarat, 2012’ where the application of the accused/revisionist was dismissed under sec 138 of Negotiable Instruments Act, 1881. The respondent of the above order filled a complaint under sec 138 of NI act against the revisionist for failing to make the payment of the amount of the cheque. 

In the said cheque drawn for an amount of ‘Forty-Four Lacs Eighteen Lacs Eight Hundred and Ninety Six only’ which was dishonored by the bank with reason ‘cheque irregularly drawn/amount in words and figures differ’. 

Grounds taken in the revision petition are:

The impugned order is wrong on facts and in law. The ld. MM had appreciated the facts wrongly and failed to appreciate the position of law as described under the NI Act.

When an accused appears before the trial court in a summons case it is the duty of the trial court to carefully go through the allegations made in the charge sheet/complaint and consider the evidence in order to come to the conclusion under sec 251 CrPC. The trial court failed to appreciate section 6 of the NI Act which defines the cheque and also failed to appreciate sec 5 of the NI Act which defines the bill of exchange. 

It also failed to appreciate sec 18 of the NI Act which defines the circumstances where the amount is stated differently in figures and… Continue Reading...

Tagged: Negotiable Instrument Act  
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