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Claim for damages does not amount to existing debt and liabi

 

CLAIM FOR DAMAGES DOES NOT AMOUNT TO EXISTING DEBT AND LIABILITY U/S 138 OF NI ACT

 

The calculated amount of Rs.1,36,20,000/- does not fall in the category of existing debt or liability, but as if damages have been assessed by the respondent. Had the statutory notice and its response been perused by the learned MM, it would have revealed that it was a dispute between the company and one of its Director and when the terms of appointment were in writing, the cheque for a huge sum of Rs.1,36,20,000/- could not have been sent/handed over to the
respondent/complainant without any settlement in writing to this effect. The complainant is silent as to when and where and by whom the cheque in question was given to him to settle his future dues. If any amount is calculated and claimed towards damages, then it being a purely civil dispute, provisions of Section 138 NI Act could not have been invoked by the respondent/complainant.

Delhi High Court
M/S Ikf Technologies Ltd & Ors vs Sasi Bhusan Raju on 17 December, 2012
Citation;2013 ALL M R (cri)JOURNAL 49

https://www.lawweb.in/2013/11/claim-for-damages-does-not-amount-to.html



Learning

 2 Replies

Ashish Singla 098140 76600 (Cheque Victim's Lawyer. LUDHIANA (PB))     08 November 2013

Nice decision, if we convince  to Trial courts at initial stage these things with confidence and clarity, than lot of case can be saved from long trial. Because Apex Courts are very much clear on statue in present times in this particular Act.

kapoorsatish (n/a)     03 January 2014

A  NBC charging Rs15/= per day as damages for  default in payment of daily instalment besides 3% per month interest instead of 22 % agreed in loan agreement will fall under this judgment


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