Negotiable Instruments Act, 1881
Section 138—Dishonour of cheque—Order of Magistrate summoning respondent set aside by Revisional Court/ASJ on ground that a purported settlement had been arrived at between parties—Challenged—Once having denied the liability of loan itself, the question of getting the benefit of a purported settlement to repay cannot possibly accrue to the benefit of respondent—Nowhere in the reply to the legal notice has the respondent stated that cheques are not signed by him—Respondent merely takes the plea that there were blank cheques given which have been misused—Issue of underlying liability as per the NI Act would be presumed and if rebutted would need to be proved by complainant—Quashing of summoning order itself by the ASJ was premature, and not sustainable in fact and in law—Even the scope of interference in a revision petition is extremely narrow—Impugned order set aside and proceedings in respect of complaint case are revived before the Magistrate—Petition allowed.
[Paras 6 to 10]
Decision : Petition allowed