Alok Nanda Vs Fiit Jee Ltd. (Delhi High Court)
The Delhi High Court examined petitions filed under Section 482 of the Code of Criminal Procedure seeking quashing of a criminal complaint and summoning order arising from dishonour of a cheque under Section 138 read with Section 141 of the Negotiable Instruments Act, 1881. The dispute originated from a commercial arrangement between the parties, first governed by a Joint Venture Agreement (JVA) executed in 2010 for establishing a school project in Bhopal, and later replaced by a Loan Agreement executed in November 2012 after the JVA failed due to non-availability of change of land use permissions.
Under the JVA, an amount of ₹2.5 crore was advanced to the borrower. When the project could not proceed, a fresh Loan Agreement for ₹15 crore in two phases was executed, under which the earlier ₹2.5 crore was expressly acknowledged and carried forward as part of the first-phase loan of ₹10 crore. The Loan Agreement provided that the balance amount would be released subject to certain conditions and also contained a recall clause making the disbursed loan immediately due and payable with interest if the project was delayed or failed. Seven post-dated cheques were issued as security for the first phase loan, including a cheque of ₹1 crore scheduled for repayment in April 2015.
