A Delhi HC recently held an instrument cannot defined as term as a cheque, if it does not mention a specific “certain amount” of money to be paid to certain person. The amount written on the cheques is illogical, the same cannot be defined as cheque and has not legal enforceability under the Negotiable Instruments Act.
The case observed made by Addl. Sessions Judge, Praveen Singh under the proceeding under the section 138 of the Negotiable Instruments Act, that instrument with uncertain amount payable is not applicable for the said session.
In the presented case, the cheque was in matter with amount drawn for ‘Forty-Four Lacs Eighteen Lacs Eight Hundred and Ninety-Six only’. The same cheques were dishonored by with reason as cheque was irregularly drawn amounts in words and figure.
The court held, the presented document for payment was uncertain before the bank and neither a bill nor a cheque as per section 5 & 6 of the Negotiable Instruments Act. Hence, the section 138 of the act is not legally enforceable in the court. Hence, it will not impose any liability to both parties.