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U.C. Banerjee#Y.K. Sabharwal#2122SC2120Judgment/OrderACR#AIR#ALD(Cri)#Allahabad Criminal Cases#AllMR#ALT (Criminal)#ALT#AWC#BC#BC#BLJR#BomCR#CCR#CGLJ#CHN#CLA#CompCas#CompLJ#CompLJ#CriLJ#Crimes#GLH#INSC#JT#KLT#MANU#MhLJ#MhLJ#MPHT#MPLJ#PLJR#SCALE#SCC#SCL#SCR#SCR(Supp)#UJ#WLNU.C. Banerjee,Finance#FinanceSUPREME COURT OF INDIA2012-9-24Specific Contracts - Guarantee/Surety,Contract and Specific Relief25842,17060,17483,15419,15421 -->
MANU/SC/0669/2002
True Court CopyTM EnglishWLN BLJR
IN THE SUPREME COURT OF INDIA
Criminal Appeal No. 797 of 2002
Decided On: 12.08.2002
Appellants: I.C.D.S. Ltd. Vs. Respondent: Beena Shabeer and Ors.
Hon'ble Judges/Coram:
U.C. Banerjee and Y.K. Sabharwal JUDGMENT
U.C. Banerjee,J.
1. Leave granted.
2. A short but an interesting question falls for consideration in this appeal to the effect as to the maintainability of a proceeding under Section 138 of the Negotiable Instruments Act, 1881, vis-a-vis a guarantor. The High Court negated in and hence the matter before this Court under Article 136 of the Constitution. In order, however, to appreciate the contentions raised in the matter, it would be worthwhile at this juncture to notice Section 138 for its true terms, scope and effect as also to assess the situation ourselves. Section 138 of the Negotiable Instruments Act, 1881 reads as below:
" 138. Dishonour of cheque for insufficiency, etc., of funds in the account -Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid form that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may extend to one year, or with fine which may extend to twice the amount of the cheque, or with both:
Provided that nothing contained in this section shall apply unless-