Mon. Sep 28th, 2020

Credential Leasing & Credits Ltd. vs Shruti Investments & Anr. on 29 June, 2015

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VIPIN SANGHI, J.
1. After hearing learned counsel, leave granted.
2. Let the appeal be registered and numbered.
Crl.A. No. 729/2015

3. I heard learned counsel finally at the admission stage with their
consent and reserved judgment. Accordingly, I now proceed to dispose of
the appeal.
4. The present appeal is directed against the judgment and order dated
26.05.2014 passed by Sh. Vikram, MM-03, South-West District, Dwarka
Courts, Delhi in CC No.1798/2014 under Section 138 of Negotiable
Instruments Act (NI Act). The respondent/accused was acquitted by the
impugned judgment and the complaint preferred by the appellant has been
dismissed.
5. The case of the complainant, as set out in the complaint is that the
complainant is a member of the National Stock Exchange (NSE) of India,
dealing in capital market. Accused No. 1 is the name of a business
enterprise of a Hindu Undivided Family (HUF), dealing in capital markets,
through accused no. 2, its Karta. The complainant claims that at the request
of accused no. 1 through accused no. 2, and in consideration of issuance of a
cheque bearing No. 501416 dated 22.6.96 for Rs. 14 Lacs drawn on Oriental
Bank of Commerce, Tagore Garden Branch, New Delhi – 110 027, and
deposit of certain shares with the complainant as security, the accused were
allowed to conduct the sale and purchase of shares on credit basis with the
complainant, with the understanding that the aforesaid shares and cheque
can be encashed by the complainant, in case of failure of the accused to
meet its liability if and when it arises due to the share transactions
undertaken by the accused through the complainant. The accused
conducted several transactions of shares with the complainant as per the
detailed bills and statement of Accounts placed on record, and more than
Rs. 14 Lacs were found payable and outstanding against the accused.
Hence as per the request of the Accused, the complainant presented the said
cheque for encashment to its bank, i.e. the Bank of India, Rajouri Garden,

New Delhi (J-2/1, B.K.Dutta Market), New Delhi – 27 on 25.7.96 and the
said cheque was dishonoured and returned unpaid due to „Insufficient Fund‟
by the Accused‟s Banker Oriental Bank of Commerce, Tagore Garden
Branch, New Delhi – 110 027. An intimation in this regard vide Bank
advice dated 27.7.96 along with cheque Return memo and said cheque were
received by the complainant through its Bank on 27.7.96.

Source: Indian Kanoon

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