Skip to main content

Dishonoured Cheque offence even if cheque issued for sale consideration not disclosed in sale deed

In Bhawish Chand Sharma v. Bawa Singh, the case of the complainant was that he had sold a property to the accused for an agreed sale consideration of Rs. 20 lakhs. The accused had paid Rs.15 lakhs in cash and for the balance consideration, the cheque was issued. On presentment, the cheque got dishonoured, and the complaint was filed when the accused failed to discharge the liability after the statutory notice.

The accused admitted that the sale consideration was Rs.20 lakhs, and stated that he had paid Rs.16 lakhs in cash. He put forth a defence that he had issued cheques for Rs.4 lakhs, but those cheques were returned by the complainant stating that he had no bank account. The accused further stated that he had paid the balance in cash and that a cheque for Rs.5 lakhs without writing the name of payee was handed over to the broker as security for discharging certain electricity dues on the property. According to the accused, that cheque was misutilized by the complainant to cause the dishonour.

The trial court noted that even though the complainant stated the sale consideration to be Rs.20 lakhs, the value reflected in the sale deed was just Rs.4 lakhs. On this count, and also by accepting the version of the accused, the trial court acquitted the accused.

On appeal the High Court held that the failure to disclose full sale consideration will not invalidate the transaction underlying the cheque, though it may attract other legal penalties and that offence of dishonour of cheque under Section 138 of the Negotiable Instruments Act is attracted even if the cheque was issued in respect of sale consideration which was not disclosed in the sale deed. 

Comments

Post a Comment

Most viewed this month

One Sided Clauses In Builder-Buyer Agreements Is An Unfair Trade Practice

In CIVIL APPEAL NO. 12238 OF 2018, Pioneer Urban Land & Infrastructure Ltd. vs Govindan Raghavan, an appeal was filed before the Supreme Court  by the builder against the order of the National Consumer Forum. The builder had relied upon various clauses of the Apartment Buyer’s Agreement to refute the claim of the respondent but was rejected by the commission which found the said clauses as wholly one-sided, unfair and unreasonable, and could not be relied upon. The Supreme Court on perusal of the Apartment Buyer’s Agreement found stark incongruities between the remedies available to both the parties. For example, Clause 6.4 (ii) of the Agreement entitles the Appellant – Builder to charge Interest @18% p.a. on account of any delay in payment of installments from the Respondent – Flat Purchaser. Clause 6.4 (iii) of the Agreement entitles the Appellant – Builder to cancel the allotment and terminate the Agreement, if any installment remains in arrears for more than 30 da...
Post a Comment
Read more

Inherited property of childless hindu woman devolve onto heirs of her parents

In Tarabai Dagdu Nitanware vs Narayan Keru Nitanware, quashing an order passed by a joint civil judge junior division, Pune, the Bombay High Court has held that under Section 15 of the Hindu Succession Act, any property inherited by a female Hindu from her father or mother, will devolve upon the heirs of her father/mother, if she dies without any children of her own, and not upon her husband. Justice Shalini Phansalkar Joshi was hearing a writ petition filed by relatives of one Sundarabai, who died issueless more than 45 years ago on June 18, 1962. Article referred:http://www.livelaw.in/property-inherited-female-hindu-parents-shall-devolve-upon-heirs-father-not-husband-dies-childless-bombay-hc-read-judgment/
Post a Comment
Read more

Court approached in the early stages of arbitration will prevail in all other subsequent proceedings

In National Highway Authority of India v. Hindustan Steelworks Construction Limited, the Hon'ble Delhi High Court opined that once the parties have approached a certain court for relief under Act at earlier stages of disputes then it is same court that, parties must return to for all other subsequent proceedings. Language of Section 42 of Act is categorical and brooks no exception. In fact, the language used has the effect of jurisdiction of all courts since it states that once an application has been made in Part I of the Act then ―that Court alone shall have jurisdiction over arbitral proceedings and all subsequent applications arising out of that agreement and arbitral proceedings shall be made in that Court and in no other Court. Court holds that NHAI in present case cannot take advantage of Section 14 of the Limitation Act, 1963 for explaining inordinate delay in filing present petition under Section 34 of this Act in this Court.
Post a Comment
Read more