Case Law Details
M/s. Shree Tyres Vs. State (Patiala House Courts : New Delhi)
1. Introduction:
Patiala House Courts : New Delhi has held that an instrument cannot be termed as a ‘Cheque’ if it does not specify a certain amount of money to be paid to a certain person. Thus, if the amount written on the instrument is ‘absurd’, the same cannot be called a ‘cheque’ and will not draw any legal consequences under the Negotiable Instruments Act. The observation was made by Additional Judge Praveen Singh of the Patiala House Court while hearing the revision petition of an accused in proceedings under section 138 of Negotiable Instruments Act.
In this case, a cheque was drawn in favor of the respondent“Forty Four Lacs Eighteen Lacs Eight Hundred and Ninety Six only”. Thus, it was dishonored for the reason that“either cheque was drawn irregularly or the amount differs in words and figures “by the bank.
The Revisionist contended that the aforesaid amount could not be ascertained and thus the document which was presented before the bank was neither a Bill nor a cheque under section 5 and 6 of the NI Act, respectively and the offense under section 138 NI Act could not have been attracted.
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