CHAHAL ENGINEERING AND CONSTRUCTION LTD Vs. VERMA PLYWOOD CO
LAWS(P&H)-1993-9-101
HIGH COURT OF PUNJAB AND HARYANA
Decided on September 16,1993

CHAHAL ENGINEERING AND CONSTRUCTION LTD Appellant
VERSUS
VERMA PLYWOOD CO Respondents

JUDGEMENT

- (1.) THE petitioners seek quashing of the complaint dated August 29, 1991, filed by the respondent against him for an offence under Section 138 of the Negotiable Instruments Act, 1881 (for short "the Act"), the summoning order issued by the court and all consequent proceedings.
(2.) THE prosecution was launched by the respondent on the ground that the respondent had supplied to the petitioner shuttering plywood valued at Rs. 2,28,300 during the period August 3, 1989, to October 3, 1989, vide various bills. The petitioner paid Rs. 20,000 by way of a cheque dated November 17, 1989, but withheld the balance amount. Ultimately, on issuing two cheques in favour of the respondent and on presentation one of the cheques was honoured on June 15, 1991, but the second cheque amounting to Rs. 98,050 was dishonoured with the remarks "refer to drawer". On receipt of intimation of this memo of dishonour, the respondent issued a notice and the notice sent at the Delhi address was duly delivered while the other was received back unclaimed. This dishonoured cheque was again presented for encashment on July 31, 1991, but having been again dishonoured, a notice dated August 5, 1991, was issued calling upon the petitioner to pay the sum of Rs. 98,050 within fifteen days from the receipt of this notice, Since the petitioner did not make the payment, he was liable for the offence under Section 138 of the Act.
(3.) THE petitioner has challenged the prosecution on the basis that the same was time-barred as it was not presented within one month of the accruing of the cause of action.;


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