Legal Reference Library

In Hazi Jahangir Molla Vs. Md. Alim Mallick, the Hon'ble Calcutta High Court decided that Part payment cannot defeat the entire cause of action. Further Even if one person who has no money lending licence cannot be debarred from granting any accommodation loan to his friend or other person on him he has confidence. The opposite party took the accommodation loan and he cannot take the shelter of the money lenders’ act to defraud the person who accommodated him. Taking into consideration the factual aspects of this case this revisional application is to be decided on the following points. (1) Whether the demand notice was defective as because a part payment to the tune of Rs. 1,00,000/- was accepted and that is the departure from the cause of action itself? (2) Whether the complaint is barred by limitation? (3) Whether the cheque was issued in discharge of existing liability? (4) Whether the part payment of cheque is enough to defeat the entire cause of action? (5) W...

If part payments or settlements made after the issuance of a Cheque, Can the Complainant issue a demand for a lesser amount? Whether in such circumstances the criminal prosecution for Dishonour of a Cheque under Section 138 of Negotiable Instruments Act, for higher amount is legally sustainable or not? These two interesting questions arose in a case before Supreme Court which were not answered by the bench as the parties arrived at an amicable settlement. The Apex Court Bench comprising of Justices Dipak Misra and Shiva Kirti Singh in M/s. Moser Baer Photo Voltaic Ltd. Vs. M/s. Photon Energy Systems Ltd. & Ors said that the above questions of law is left open for adjudication in any other appropriate case. The Respondents in the Appeal had issued a cheque of Rs. Rs.3,21,53,903/- to the Appellant. There were some disputes between both the parties which were settled through a mutual meeting, the net payable amount by respondent was reduced and settled at Rs.2,87,09,640/-. The cheque ...