Section 138 and 139 of N.I.Act.
Prosecution of dishonour of cheque initiated by holder of cheque in due course.
Cheque was drawn by accused No.1 in favour of accused No.2 for amount of Rs. One lakh towards discharge of some debt incurred by accused No.1 towards accused No.2–Accused No.2 had some transaction with applicant No.3 and accused No.2 endorsed the cheque in favour of applicant– Applicant indorsed cheque in favour of complainant and got it discounted through complainant who was in business of finance and discounting– Complainant paid cheque amount to applicant and presented cheque for encashment and cheque was returned unpaid with endorsement ” NOT ARRANGED FOR ” — Dishonour of cheque was brought to notice of all three accused and then prosecution was laid– Petition for quashing proceedings by accused No.3 on plea that he was not drawer of cheque and holder in due course could not maintain a complaint in absence of a legal enforceable debt between parties– Whether complaint was maintainable at the instance of a holder in due course?.
YES.
Ratilal Harmanbhai Patel Vs. State of Gujarath and another.
2017 (1) Crimes 186 (Guj).