AIR 1998 SUPREME COURT 1057

Supreme Court Of India

(From : 1997 Cri LJ 805 Calcutta)

Hon'ble Judge(s): M. K. Mukherjee, S. P. Kurdukar, K. T. Thomas , JJJ

Negotiable Instruments Act (26 of 1881) , S.138, S.139— Dishonour of cheque - Presumption under S. 139 in favour of holder is followed once - Cheque is issued by drawer - Notice by drawer to drawee or to bank for stoppage of payment - Would not preclude action under S. 138 by drawee. 1997 Cri LJ 805 (Cal), Reversed.1996 AIR SCW 840 and (1996) 6 SCC 369, Overruled. Once the cheque is issued by the drawer a presumption under S. 139 in favour of holder must follow and merely because the drawer issues a notice to the drawee or to the Bank for stoppage of the payment it will not preclude an action under S. 138 by the drawee or the holder of a cheque in due course. S. 138 to 142 of the Act promotes the efficacy of banking operations and to ensure credibility in transacting business through cheques. It is for this reason the observations in 1996 AIR SCW 840 to the effect "Suppose after the cheque is issued to the payee or to the holder in due course and before it is presented for encashment, notice is issued to him not to present the same for encashment and yet the payee or holder in due course presents the cheque to the bank for payment and when it is returned on instructions, S. 138 does not get attracted," does not fit in with the object and purpose for which above chapter has been brought on the Statute Book.(Para 16 18) ....