Liability to pay amount – Appellant-complainant supplied goods to M/s. Shah Agencies – Accused carried their business in the names of M/s. Shah Enterprises and M/s. Shah Agencies -- In part discharge of the liability of M/s. Shah Agencies, two cheques for Rs. 5 lakhs each were issued by the accused on an account maintained by M/s. Shah Enterprises – Cheques were dishonoured due to insufficient fund -- Case made out in the complaint was that the goods were sold and supplied to M/s. Shah Enterprises and the liability was of M/s. Shah Enterprises -- While in the affidavit in lieu of examination-in-chief, the Complainant came out with a case that the liability was that of M/s. Shah Agencies as goods were sold and supplied to M/s. Shah Agencies and it was not the case of the appellant that the accused had agreed to take over and discharge the liabilities of M/s. Shah Agencies – Acquittal of accused upheld.

(SC) Decided on: 16.09.2015

Liability to pay amount – First and foremost essential ingredient for attracting a liability under this Section is that the person who is to be made liable should be the drawer of the cheque and should have drawn the cheque 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 discharge, in whole or part, of any debt or other liability.

(SC) Decided on: 16.09.2015