Hon'ble SC has delivered a very important judgment on applicability of S.138 of NI Act.
Raj Kumar Khurana v/s State of (NCT of Delhi) and anr.
Criminal Appeal no. 913 of 2009 decided on 5.5.2009
SC says offence under the aforsaid sec is made out only when the cheque is returned by bank unpaid for the following reasons:-
1.) amount of money standing to the credit of that account is insufficient to honour the cheque.
2.) If exceeds the amount arranged to be paid from that account by an agreement made with that bank.
this is an important judgment, this issue was ealier raised by one of our members Mr. Vinod Bansal.
this judgment is going to have big implications and thus in cases of stop payment or cheque loss complaints the offence under above said Section will not be made out.
Even finance companies taking post dated cheques might be in a bit of difficulty now.
Larger issue, lets discuss its implications.