Fayaz Ahmad Rather Vs Tariq Ahmad Wani (Jammu & Kashmir High Court)
The Jammu & Kashmir High Court considered whether a single complaint under Section 138 of the Negotiable Instruments Act could be maintained in respect of dishonour of more than three cheques. The petitioner challenged the complaint filed by the respondent and the order dated 26.07.2022 passed by the Special Mobile Magistrate (Sub Judge), Pulwama, whereby cognizance of the offence under Section 138 of the Negotiable Instruments Act had been taken and process issued against the petitioner.
According to the complaint, the respondent had agreed to purchase land from the petitioner for Rs.20.00 lacs. It was subsequently revealed that the land was mortgaged to the bank, following which the respondent sought refund of the sale consideration already paid. The petitioner allegedly issued four cheques of Rs.5.00 lacs each, dated 5th May, 2022, 10th May, 2022, 15th May, 2022 and 20th May, 2022. The cheques were deposited with J&K Bank, Branch Office Parigam Pulwama, on 21.06.2022 and were returned unpaid due to insufficiency of funds.
The respondent thereafter served a single legal notice dated 01.07.2022 demanding payment in respect of all four dishonoured cheques within fifteen days. When the petitioner did not make payment, the complaint under Section 138 was filed. The trial Magistrate, after recording preliminary evidence and examining the documents and complaint, formed a prima facie opinion that the offence under Section 138 was made out and issued process on 26.07.2022.
