The Court dismissed the Section 482 application seeking to quash proceedings under Section 138 NI Act. It held that since the issuance of the cheque was not disputed, the presumption under Section 139 arises, and the complaint is maintainable until the presumption is rebutted during trial.
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Neutral Citation No. - 2024:AHC:124513
HIGH COURT OF JUDICATURE AT ALLAHABAD
(SN.19)
Court No. - 79
Case :- APPLICATION U/S 482 No. - 16917 of 2024
Applicant :- Sh Sanjeev Aggarwal Opposite Party :- State of U.P. and Another Counsel for Applicant :- Kaushal Kumar Singh Counsel for Opposite Party :- G.A.
Hon'ble Anish Kumar Gupta,J.
complied with the notice. Thereafter the opposite party no. 2 has lodged a complaint case against the applicant herein under section 138 N.I. Act.
5.Per contra, learned A.G.A. submits that the issuance of cheque is not disputed by the learned counsel for the applicant. Therefore, once it is admitted that the cheque was issued there is a presumption under section 139 of the N.I. Act against the drawer that the same was issued towards legally enforceable debt or liability. It is therefore submitted by the learned A.G.A. that in view of the presumption under section 139 of the N.I. Act prima facie a case is made out against the applicant and no interference is required by this Court in the instant application.
Order Date :- 22.7.2024
o.k.
(Anish Kumar Gupta,J.)
Digitally signed by :- OM KRISHNA CHOUDHARY High Court of Judicature at Allahabad
1 issue framed by the court
Whether the issuance of a cheque gives rise to a presumption under Section 139 of the N.I. Act regarding legally enforceable debt?
Colour shows how this judgement treated each authority
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3 provisions across 2 enactments
Sh Sanjeev Aggarwal
Anish Kumar Gupta
As recorded by the court registry
2 orders share this CNR
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