Section 138 NI Act: No case made out if cheque amount is more than the liability [Read the Order]

Delhi High Court has refused to grant leave to appeal in a cheque bounce case where the accused was acquitted since the cheque amount was more than the liability.

A bench of Justice Bakhru has passed the order in the case titled as STARKEY LABORATORIES INDIA PVT LTD vs SANJAY GUJRAL on 24.09.2019.

The petitioner’s complaint related to the dishonour of a cheque (No.00054 dated 09.10.2014 drawn on Bank of India, Dilshad Garden branch for a sum of Rs.2,00,000/-). It is stated that the said cheque was issued by the respondent at the beginning of their business relationship in the year 2011 as a security.

The petitioner claims that it is in the business supplying hearing aids and had supplied the said products to the respondent. The petitioner stated that as on 11.10.2012, a sum of RS. 1,49,569/- was outstanding against the respondent.

It was the respondent’s case that their accounts had been settled as he had returned certain products, which had been supplied to him and the credit for the same had not been accounted for.

The undisputed facts are that the petitioner was in possession of a blank cheque furnished by the respondent. As per the books of the petitioner, a sum of Rs. 1,49,569/- was outstanding as on 11.10.2012. However, the petitioner waited for over two years to fill an amount of RS. 2,00,000/- in the said blank cheque and deposited the same. According to the petitioner, the amount of RS. 1,49,569/- had increased to RS. 2,16,247/- as on the date of depositing the cheque, on account of interest calculated at the rate of 24% per annum.

The trial court had noted that there was no contract or arrangement whereby the respondent had agreed to pay any interest.

High Court observed and held as under:

"In the aforesaid view, the petitioner had been unable to establish that the cheque of RS. 2,00,000/- had been issued by the respondent against any such liability.

Even if it is accepted that the sum of RS. 1,49,569/- was due from the respondent as on 11.10.2012, as deposed on behalf of the petitioner, the liability of RS. 2,00,000/- was not established.

The view taken by the trial court is a plausible one and thus no interference is called for by this Court. Accordingly, the petition is dismissed".

Read the Order here:

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