RAM SETHI Vs. BCC PROPERITIES PVT LTD
LAWS(DLH)-2007-9-325
HIGH COURT OF DELHI
Decided on September 11,2007

RAM SETHI Appellant
VERSUS
BCC PROPERTIES PVT. LTD Respondents

JUDGEMENT

V.B.Gupta, J. - (1.) By way of the present petition, the petitioner has sought quashing of the complaint filed under Section 138 of the Negotiable Instruments Act, pending in the Court of Magistrate.
(2.) The respondent/complainant had executed a Memorandum of Understanding with the present petitioner for purchase of certain land at Mohali and at the time of execution of the Memorandum of Understanding, the respondent/ complainant made advance payment of Rs. 50 lacs to the petitioner. Since the deal could not materialse, the petitioner issued cheque dated 15th November, 2005, amounting to Rs. 50 lacs for re-payment of the advance payment to the respondent/complainant. Later on the cheque was dishonoured and was returned back with the remarks "insufficient funds".
(3.) It has been contended by learned counsel for the petitioner that the respondent/complainant had entered into an agreement with one Gurinder Singh Cheema for purchase of the land and this deal was brokered through the petitioner and to this effect a Memorandum of Understanding was executed between the petitioner and the respondent wherein it was stated by the petitioner that he was issuing a cheque dated 15th November, 2005 as a guarantee only and this amount of Rs. 50 lacs was paid to one Gurinder Singh Cheema and nothing went to the pocket of the petitioner. Since the deal could not be materialised, the said Gurinder Singh Cheema returned Rs. 50 lacs to the respondent vide pay orders and the whole liability was of Gurinder Singh Cheema to the respondent and the petitioner has only stood as a guarantor. Since the petitioner has not received a single penny out of this Rs. 50 lacs, there is no liability of the petitioner to pay the amount to the respondent and as such the present criminal complaint is liable to be quashed.;


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