Don Ayengia Vs. State of Assam & Anr.
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Head Note
The Negotiable Instruments Act, 1881 - Section 138
Dishonour of Cheque - Liability - Appeal against acquittal -Promissory note executed by 'N' contained an unequivocal acknowledgment of not only the debt/liability aforementioned but promised to liquidate the same within one month with interest at the bank rate - Five cheques handed over were to be returned but only upon payment of the amount in question - There is a direct relationship between the liability and the cheques issued in connection therewith - Promissory note uses the words "security" qua the cheques - This would ordinarily and in the context in which the cheques were given imply that once the amount of rupees ten lakhs was paid, the cheques shall have to be returned - In case, however, the amount was not paid within the period stipulated, the cheques were liable to be presented for otherwise there was no logic or reason for their having been issued and handed over in the first instance - High Court fell in error in upsetting the conviction recorded by the Courts below - Order passed by the High Court liable to be set aside to the extent it allowed Criminal Revision filed by the respondent - Consequently the order passed by the appellate court shall stand restored.
Topic(s)-Dishonour of Cheque - Liability - Aquittal by HC Set aside