COLLAGE CULTURE Vs. APPAREL EXPORT PROMOTION COUNCIL
LAWS(DLH)-2007-10-295
HIGH COURT OF DELHI
Decided on October 11,2007

COLLAGE CULTURE Appellant
VERSUS
APPAREL EXPORT PROMOTION COUNCIL Respondents

JUDGEMENT

- (1.) PETITIONERS pray that the order dated 21. 1. 2004 summoning the petitioners to face trial for the alleged offence under Section 138 of the negotiable Instruments Act 1881 be quashed.
(2.) IT is urged that no actionable cause exists in favour of the complainant to make out the offence under Section 138 of the Negotiable Instruments act 1881. It is urged that the sine qua non for the applicability of Section 138 of the Negotiable Instruments Act 1881 is the issuance of cheque for a debt which is due towards discharge of a liability. It is urged that a cheque given as a collateral security or as a security for payment of an amount which may become payable at a future date upon the happening or the non-happening of an event i. e. towards a contingency cannot be the foundation of an action under Section 138 of the Negotiable Instruments Act 1881.
(3.) ADMITTEDLY, the complaint which was filed under Section 138 of the negotiable Instruments Act 1881 pertained to cheques issued by the petitioners on 1. 6. 2003.;


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