...than the cheque amount. A reading of the wordings of the Section shows that the cheque should be given in discharge of a debt either in whole or in part or any liability and if the cheque ...claimed the cheque amount, which is higher amount than the debt, in such a situation, no offence under Section 138 of the N.I Act will be attracted.4. In reply to the above argument....5. The question that arise for consideration is that if the debt amount is less than the cheque amount whether any offence under Section 138 will be attracted against the revision petitione...

...that as on the date of issuance of the cheque, Rs.2,00,000/- was not the liability on the petitioner - accused and the amount due was Rs.1,72,500/- and since the cheque amount is higher ...that the respondent has not raised a defence that the cheque amount is higher than the liability. The reply notice issued under Section 138 of NI Act is that of total denial and the petitioner has...received amount from the complainant. It is not the defence of the petitioner that he has repaid Rs.90,500/-. The contention that the cheque amount is higher than the amount due is taken for first...

...issued by the appellant. The sum in the cheque is higher than the amount that was due to the appellant. Thus, the statutory notice issued under Section 138 is not valid. It is an omnibus notice since...respondent is that the offence under Section 138 was not committed since the amount that was payable to the appellant, as on the date the cheque was presented for encashment, was less than the amount...rupees twenty lakhs in favour of the first respondent. The cheque was dishonoured. A demand notice for an amount higher than the cheque amount was issued. A two-Judge Bench of this Court held that...

...cheque amount was much more than this. Thus, the cheque being of higher amount could not be taken towards discharge of the existing legal liability.4. Reliance has been plac...parties, it was concluded that cheque amount was much more than the actual amount due, therefore, cheque was not in discharge of a legal liability. Trial court has meticulously scrutinized evidenc...date of presentation of the cheque, is more than the amount of the cheque. But, can it be said the expression “amount of money” would always mean the amount of the cheque, even if the act...

...post dated cheque for Rs. 17,745/- was due. It was held that the cheque issued was for much higher amount than was actually due and therefore it cannot be said that the cheque was issued towards d...in the account to discharge the liability. With a view to avoid unnecessary prosecution of an honest drawer of a cheque, or to give an opportunity to the drawer to make amends, the proviso to S. 138...to put date so also the amount, as it was a blank cheque. But the question raised is whether provisions under section 138...

...amount actually due. The notice demanding the discharge of liability was also for an amount higher than the amount actually due. Hence it cannot be said that the offence under S....enforceable debt or liability to the extent shown in the instrument. When the amount shown in the cheque is more than what is legally due or enforceable, no offence u/S. 138 is made out, unless the ...respondent did not care to make endorsement under S. 56 of the Negotiable Instruments Act, I find that the cheque was presented for collection of an amount higher than the...

...would be 20 any sum lesser than the cheque amount. Thus, when any sum issued in the cheque is for an higher amount...reducing the alleged liability much lesser than the alleged cheque amount, the action under Section 138 of the N.I.Act would not sustain. 6. PW1 in his examination-in-chief i...the cheque the outstanding liability payable by the drawer of the cheque towards the payee / complainant should be to the extent of cheque amount or more than the cheque amount. ...

...contract has to be considered against a liability, as the amount written in the cheque is payable by the person on the date mentioned in the cheque.7. Section 138 of the NI...expression means a legally enforceable debt or other liability. Section 138 treats dishonoured cheque as an offence, if the cheque has been issued in discharge of any debt or other liability. The...Explanation leaves no manner of doubt that to attract an offence under Section 138, there should be a legally enforceable debt or other liability subsisting on the date of drawal of the cheque. In other words...

...above notice, the Magistrate was of the view that the demand made in the notice being higher than the amount of the cheque, the notice was bad in view of an earlier decision of the High Court...prejudice to any other provision of the Act. If the cheque amount is paid within the above period or before the complaint is filed the legal liability under Section 138 will cease and for recovery of...be taken up. If Respondent 1 had paid the cheque amount he would have been absolved from the criminal liability under Section 138. Regarding other claims, a civil suit would be necessary....

...Section 138, the court has to presume that the cheque had been issued for a debt or liability. This presumption is rebuttable. However the burden of proving that a cheque had not been issued for a...appellant filed a complaint under Section 138 of the Negotiable Instruments Act as the cheque dated 6-4-1993 in a sum of Rs 63,720 issued by the 1st respondent in favour of the appellant on Central...not proved that the cheque dated 6-4-1993 had been issued for any debt or liability.6. In our view the impugned judgment cannot be sustained at all. The judgment...

...on said ruling that if the amount for which the blank cheque issued was filled in was much higher than the amount due in that case it cannot be said that the cheque was issued towards debt or othe...section 138 is not attracted because the cheque was not issued for discharge in whole or in part of any debt and other liability. It is also observed that the petitioner issued blank cheques, whether those...were written by the petitioner or those were written beyond instructions of petitioners by respondent No. 2, whether amount due is lesser than the amount endorsed on the cheque, these and such issues...

..., of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the...an understanding between the parties that the said amount would be returned if the project did not materialise. Agreeing to the same, the respondent Company issued a cheque of Rs 25 crores in favour...the rival contentions, it is useful to refer Section 138 of the NI Act which reads as under:“138. Dishonour of cheque for insufficiency, etc. of funds in the account...

...the same against a debt or liability, a drawer will easily avoid penal consequences under Section 138. Once a cheque is issued by a drawer, a presumption under Section 139 must follow and merely...to credit in the account. Withdrawal of the entire amount would therefore mean that there were no funds in the account to honour the cheque which squarely brings the case within Section 138 of the Act...-1994 and 10-4-1995. On 12-2-1993 Respondent 1 again wrote to the appellant denying his liability to pay the amount under the aforesaid cheques on the ground that they were issued under a mistaken...

...the holder of a cheque received the cheque of the nature referred to in Section 138, for the discharge, in whole or in part, of any debt or other liability. Needless to mention that the presumption...criminal liability by reason of dishonour of cheque and for enforcement of the civil liability for realization of the cheque amount, thereby obviating the need for the creditor to move two different fora...issued in discharge of a debt or liability is on the accused and the fact that the cheque might be post dated does not absolve the drawer of a cheque of the penal consequences of Section 138 of the...

.... 5,00,000/- and it was established that a part of it had already been repaid by the accused to the complainant - Company, as such, the total outstanding liability was in a sum lesser than the cheque amount. It was..., admittedly, it is not a case where the cheque issued was for a higher amount than the outstanding liability. On the contrary, according to the complainant, the cheque issued was for an outstandi...Section 138(b) of the N.I. Act must be the cheque amount, neither less nor more, whereas in the instant case, since the amount demanded in the notice was lesser than the cheque amount, it...

...138 shall have to be preceded by a statutory notice where the drawer is called upon and has the opportunity to arrange the payment of the amount covered by the cheque. It is only when the drawer...whether the stoppage of payment is on the ground that the amount lying in the account was not sufficient to meet the requirement of the cheque, would attract the provisions of Section 138...) Act, 1988] intends to punish only those who know fully well that they have no amount in the bank and yet issue a cheque in discharge of debt or liability already borrowed/incurred—which amounts to...

...honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank”. The necessary ingredients of Section 138 of the Act having not been pleaded...liability, is returned by the bank unpaid, on the ground either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount...:“138. Dishonour of cheque for insufficiency, etc., of funds in the account.—Where any cheque drawn by a person on an account maintained by him with a banker for payment of any...

...accordingly a notice dated 3-8-2001 was sent to the accused requesting the accused to make payment of the abovesaid cheque amount and on 17-8-2001 the accused sent reply through his advocate denying his...liability falsely taking the plea that the cheque in question was lost as stolen by the complainant….6. That the accused has taken the abovesaid false pleas...knowing it fully well that he does not intend to make payment of the said cheque amount, and the complainant is thus compelled to file this complaint.7. That...

...debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount...conclusion that when a cheque was issued as security, no complaint will lie under Section 138 of the Act since the cheque issued cannot be said to be for the purpose of discharging any debt or liability. In...be for payment of amount of money from out of the account. In the case of a guarantor or surety, even if a cheque is issued, that cannot be said to be for immediate payment of money. Section 138 of...