The Bombay High Court ruled that cheque issued before an account attachment, dishonoured after an attachment, section 138 of the NI Act is not applicable.
Facts
The petition is directed against the order passed by Judicial Magistrate First Class, Vashi, Belapur Navi Mumbai in Complaint under Section 138 of the Negotiable Instruments Act, 1881 issuing process against the petitioner. The validity of the order has been challenged on the ground that the Income Tax Department withheld the payment from the account of the petitioner. Therefore, the petitioner was prevented from honoring the cheque for the act beyond his control.
Decision
The single judge bench of Justice Amit Borkar observed that the order of attachment is of 3rd April, 2020 and the date of cheque is 10th February, 2021 providing opportunity to the accused to deposit the amount.
The court said that the petitioner had a period of one year to deposit of the amount of cheque after order of attachment. Therefore, the Judgment of Standard Chartered Bank Vs. State is not applicable in the facts of the case.
Case title: The Maharaja Log Home OPC Pvt Ltd and Anr v/s The State of Maharashtra and Ors
Citation: Writ Petition No.4137 Of 2021
