2017 ACD 112 (KER)

Kerala High Court

Hon'ble Judge(s): P. D. Rajan , J

Negotiable Instruments Act (26 of 1881) , S.138, S.15, S.56— Dishonour of cheque - Conviction - Portion of cheque amount was repaid by accused - Said payment was admitted by Complainant - No endorsement about part payment was made on back of the cheque or face thereof - However, on prosecution Complainant claimed balance of the cheque amount - No offence u/S. 138 is made out - Conviction of accused is liable to be set aside. An indorsement on the back or face of the instrument is valid under Section 15 of the N. I. Act, when the maker or holder of a negotiable instrument signs the same. If the signature on the back side of the instrument or on the face of the instrument is made by a third party, neither the maker nor the holder made any indorsement within the meaning of the Section. The indorsement for part payment of the cheque was explained under Section 56 of the N. I. Act. When the maker of the payment makes a part payment, but that amount is not endorsed and the note is fraudulently negotiated by the payee without admitting the part payment, the maker has to pay the full amount of the instrument to the holder. When court considers part payment due under a cheque and if drawee makes an endorsement regarding the part payment on the instrument and he claims the balance amount by presenting the cheque for encashment through a bank and if it is dishonoured, ....