S.K. Singh JUDGMENT
R.M. Lodha, J.
1. Leave granted.
2. The only question that arises for consideration in this appeal by special leave is, whether the post-dated cheques issued by the Appellants (hereinafter referred to as 'purchasers') as an advance payment in respect of purchase orders could be considered in discharge of legally enforceable debt or other liability, and, if so, whether the dishonour of such cheques amounts to an offence under Section 138 of the Negotiable Instruments Act, 1881 (for short, 'the N.I. Act'). The Delhi High Court in the impugned order has held that to be so.
3. The brief facts are these: On 19.02.2007 and 26.02.2007, the purchasers placed two purchase orders for supply of certain aircraft parts with Respondent No. 1, M/s. Magnum Aviation Pvt. Ltd. (hereinafter referred to as 'supplier'). In respect of these purchase orders, the purchasers also issued two post-dated cheques dated 15.03.2007 for a sum of Rs. 34,57,164/- and 20.03.2007 for a sum of Rs. 15,91,820/-. The said cheques were issued by way of advance payment for the purchase orders. One of the terms and conditions of the contract was that the entire payment would be given to the supplier in advance. The supplier says that the advance payment was made by the purchasers as it had to procure the parts from abroad.
4. These cheques got dishonoured when they were presented on the ground that the purchasers had stopped payment.
5. It is not in dispute that the supplier received letter dated 22.03.2007 from the purchasers cancelling the purchase orders and requesting the supplier to return both the cheques.
6. The supplier sent response to the letter dated 22.03.2007 on 23.03.2007 asking the purchasers as to when the supplier could collect the payment. Thereafter, on 12.04.2007, the supplier sent a notice to the purchasers and then filed a complaint against the purchasers under Section 138 of the N.I. Act before the Court of Additional Chief Metropolitan Magistrate, New Delhi.
7. On 22.05.2007, the concerned Additional Chief Metropolitan Magistrate took cognizance of the alleged offence and issued summons to the purchasers.
8. The purchasers challenged the order issuing summons in a revision petition under Section 397 of the Code of Criminal Procedure, 1973 (for short, 'Code'). The Additional Sessions Judge, after hearing the parties, allowed the revision petition vide order dated 02.09.2008 and quashed the process issued by the Additional Chief Metropolitan Magistrate.
9. The supplier challenged the order of the Additional Sessions Judge in a petition under Section 482 of the Code before the High Court. The High Court allowed the petition, set aside the order of the Additional Sessions Judge and restored the order of the Additional Chief Metropolitan Magistrate issuing process to the purchasers.
10. The Delhi High C........