Cheque Dishonour Due to “Payment Stopped by Drawer” Still Attracts NI Act Prosecution: Delhi HC

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...