Cognizance Of Section 138 NI Act Offence By Magistrate Will Not Automatically Result In Decree In Civil Suit For Cheque Dishonour: Delhi High Court

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Section 138 NI Act: Dishonour of Cheque

Case: Sarvesh Bisaria v. Anand Nirog Dham Hospital Pvt. Ltd. & Ors

Coram: Hon’ble Ms. Justice Asha Menon

Case No: CM (M) 148/2020

Court Observation: “Though the petitioner/plaintiff has claimed now that those loan transactions were something different, that would be a matter to be seen during the trial. When the respondent/defendant has challenged the claim of the petitioner/plaintiff that he had acted as legal advisor to them and, therefore, the invoice raised was for a fee, this fact too will have to be proved. In fact, in the application for leave to defend, the respondent/defendant has averred that the petitioner/plaintiff had claimed to have been providing legal assistance to the respondent/defendant since the year 2000, yet the invoice had been raised only in December 2018, and therefore, the amounts raised in the invoice would also be time-barred.”

“With regard to the submissions made by the learned counsel for the petitioner/plaintiff, that, on taking cognizance of an offence by the learned MM under Section 138 of the N.I. Act automatically a decree against the respondent/defendant should follow, cannot be accepted, as cognizance leads to trial and the accused can also get acquitted”

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Section 138 NI Act, Supreme Court, Cheque Dishonour & Judgment.


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