SUDHIR KUMAR BHALLA versus JAGDISH CHAND ETC. ETC.

Citation: [2008] 7 S.C.R. 459 · Decided: 01-05-2008 · Supreme Court of India · Bench: S.B. SINHA, LOKESHWAR SINGH PANTA · Disposal: Disposed off
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Judgment (excerpt)

[2008] 7 S.C.R. 459 
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SUDHIR KUMAR BHALLA 
A 
V. 
JAGDISH CHAND ETC. ETC. 
(Criminal Appeal No. 776 of 2008) 
-
MAY 1, 2008 
B 
,/. 
(S.B. SINHA AND LOKESHWAR SINGH PANTA, JJ.) 
Negotiable Instruments Act, 1881: 
s. 138 - Issuance of cheques against discharge of liability 
and security cheques - Dishonour of cheques - Criminal c 
liability -
Plea of accused that complainant made 
interpolations in cheques - Supported by handwriting expert 
- Acquittal - Appeal by complainant - Meanwhile at the 
instance of accused FIR registered against complainant and 
his wife for fraud, cheating and tampering with cheques - High 
D 
•-.lrrL_ 
Court in the appeals filed by original complainant qopvicting 
accused u/s 138 and allowing applications of complainant and 
quashing FIRs against him and his wife - HELD: The High 
Court has not considered the legal question raised before it 
that criminal liability of accused under the provisions of Section 
E 
138 of the Act is attracted only on account of dishonour of the 
cheques issued in discharge of liability or debt, but not on 
account of issuance of security cheques - The High Court 
has also not given cogent, satisfactory and convincing reasons 
)> 
for disbelieving and discarding the pre-charge evidence of the 
F 
) 
accused corroborated by evidence of expert opinion in regard 
to interpolation in and fabrication of cheques - Impugned 
iudgments and orders are set aside - Matters remitte,d to the 
High Court to decide the appeals filed by the complainant 
against the accused and criminal miscellaneous petitions G 
seeking to quash the first information reports registered against 
•· -i 
the complainant and his wife by police for commission of 
' 
offences stated in two FIRs. 
,_, 
CRIMINAL APPELLATE JURISDICTION : Criminal 
459 
H 
460 
SUPREME COURT REPORTS 
[2008] 7 S.C.R. 
A. .. 
A Appeal No. 776 of 2008. 
From the final Judgment and Order dated 25.01.2007 and 
19.2.2007 of the High Court of Punjab and Haryana at 
Chandigarh in Criminal Appeal No. 1413-SBA of 2002. 
B 
WITH 
..... 
"'-
Criminal Appeal Nos. 780, 781, 779, 782, 777 & 778 of 
2008. 
P.S. Patwalia, Aman Preet Singh Rahi, D. Tripathi and 
c Ashok K. Mahajan for the Appellant. 
Ankit Singhal, T.V. S. Raghavendra Sreyas, Nikhil Nayyar, 
Ajay Pal Kuldip Singh (N.P.) for the Respondent. 
The following Order of the Court was delivered by 
D 
1. Leave granted in all the above-said Special Leave 
Petitions. 
..... 
2. We have seven appeals before us in which the parties 
are similar. Since all these appeals arise out of common 
E judgments and orders dated 25.01.2007 and 19.02.2007 
passed by a learned Single Judge of the High Court of Punjab 
and Haryana in CriminalAppeal No. 1410-SBAof2002, Criminal 
Appeal No. 1411-SBAof2002, Criminal Appeal No. 1412-SBA 
of 2002, Criminal Appeal No. 1413-SBA of 2002, Criminal 
F 
Appeal No. 1433-SBA of 2002, Criminal Misc. Petition 
No.29090-M of 2001 and Criminal Misc. Petition No.36987-M 
... 
.: 
of 2001. As similar questions of facts and law are involved, 
therefore, for the sake of convenience they are being heard 
together and disposed of by this common judgment. 
G 
Brief facts, which led to the trial of the appellant, are as 
follows:-
Jagdish Chand - respondent herein and his wife Smt. 
~ 
~ 
Ramesh Rani are the proprietors of M/s Mehra Export 
Corporation and M/s Mehra International, Katra Hari Singh, 
H Amritsar. The firms deal in saffron, herbs and other like goods. 
SUDHIR KUMAR BHALLA v. JAGDISH CHAND ETC. 
461 
ETC . 
... ..... 
,. 
M/s Sudhir Kumar Bhalla and Brothers, 25, Green Park, 
A 
Ludhiana, of which Sudhir Kumar Bhalla - appellant herein is 
one of the partners, has been purchasing various goods from 
the firms of Jagdish Chand and Ramesh Rani. The sale price 
was being paid in cash and at times, through cheques. 
4. In the month of May, 1997, the appellant on behalf of his 
B 
,( 
firm issued six cheques Nos. 442344, 442345, 442346, 
442347, 442348 and 442349 dated 01.05.1997, 03.05.1997 
and 05.05.1997 in favour of M/s Mehra Export Corporation and 
M/s Mehra International. Out of those six cheques, two cheques 
were in the sums of Rs.30,000/- each and four cheques were in c 
the sums of Rs.40,000/- each. All those cheques were drawn in 
favour of the Indian Overseas Bank, Ludhiana. 
5. One of the cheques, in the sum of Rs.30,000/-, was 
stated to have been encashed, whereas the other five cheques D 
........ 
have been dishonoured on the ground of 'Excee
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