{"id":4912,"date":"2025-02-18T20:51:17","date_gmt":"2025-02-18T15:21:17","guid":{"rendered":"https:\/\/fawyerz.in\/judgments\/?p=4912"},"modified":"2025-03-12T01:26:42","modified_gmt":"2025-03-11T19:56:42","slug":"sampelly-satyanarayan-rao-v-indian-renewable-development-agency-2016case-summary","status":"publish","type":"post","link":"https:\/\/fawyerz.in\/judgments\/banking-and-insurance-law\/sampelly-satyanarayan-rao-v-indian-renewable-development-agency-2016case-summary\/","title":{"rendered":"Sampelly Satyanarayan Rao v. Indian Renewable Development Agency 2016(Case Summary)\u200b"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"4912\" class=\"elementor elementor-4912\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-917020f elementor-section-full_width elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no wpr-equal-height-no\" data-id=\"917020f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-5aa9190\" data-id=\"5aa9190\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-inner-section elementor-element elementor-element-0360c7f elementor-section-boxed elementor-section-height-default elementor-section-height-default wpr-particle-no wpr-jarallax-no wpr-parallax-no wpr-sticky-section-no wpr-equal-height-no\" data-id=\"0360c7f\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-inner-column elementor-element elementor-element-f71d46a\" data-id=\"f71d46a\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-d818b36 elementor-widget elementor-widget-heading\" data-id=\"d818b36\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"heading.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<h1 class=\"elementor-heading-title elementor-size-default\">Sampelly Satyanarayan Rao v. Indian Renewable Development Agency 2016 (Case Summary)<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-e246dd3 elementor-widget elementor-widget-image\" data-id=\"e246dd3\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"image.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<img fetchpriority=\"high\" decoding=\"async\" width=\"1312\" height=\"736\" src=\"https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/a-cinematic-shot-of-a-courtroom-with-a-j_J169hztHSmSyJup3jLiBMQ_IowUqsZnS3WbKuQH4dy5tw.jpeg\" class=\"attachment-1536x1536 size-1536x1536 wp-image-4914\" alt=\"Sampelly Satyanarayan Rao v. Indian Renewable Development Agency AIR 2016 SC 4363\" srcset=\"https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/a-cinematic-shot-of-a-courtroom-with-a-j_J169hztHSmSyJup3jLiBMQ_IowUqsZnS3WbKuQH4dy5tw.jpeg 1312w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/a-cinematic-shot-of-a-courtroom-with-a-j_J169hztHSmSyJup3jLiBMQ_IowUqsZnS3WbKuQH4dy5tw-300x168.jpeg 300w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/a-cinematic-shot-of-a-courtroom-with-a-j_J169hztHSmSyJup3jLiBMQ_IowUqsZnS3WbKuQH4dy5tw-1024x574.jpeg 1024w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/a-cinematic-shot-of-a-courtroom-with-a-j_J169hztHSmSyJup3jLiBMQ_IowUqsZnS3WbKuQH4dy5tw-150x84.jpeg 150w, https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/a-cinematic-shot-of-a-courtroom-with-a-j_J169hztHSmSyJup3jLiBMQ_IowUqsZnS3WbKuQH4dy5tw-768x431.jpeg 768w\" sizes=\"(max-width: 1312px) 100vw, 1312px\" title=\"\">\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-0d9ee86 elementor-widget elementor-widget-text-editor\" data-id=\"0d9ee86\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><span style=\"font-weight: 400;\">In this Landmark case, the Hon\u2019ble Supreme Court of India decided on validity\/inclusion of Post-Dated cheques given as \u201csecurity\u201d against a Loan under section 138 of the Negotiable Instruments Act, 1881. The case revolved around the maintainability of a criminal complaint filed in consequence of the Cheques being Dishonoured that were given as security.<\/span><\/p><div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #000000;color:#000000\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #000000;color:#000000\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/fawyerz.in\/judgments\/banking-and-insurance-law\/sampelly-satyanarayan-rao-v-indian-renewable-development-agency-2016case-summary\/#Facts_of_Sampelly_Satyanarayan_Rao_v_Indian_Renewable_Development_Agency\" >Facts of Sampelly Satyanarayan Rao v. Indian Renewable Development Agency\u00a0\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/fawyerz.in\/judgments\/banking-and-insurance-law\/sampelly-satyanarayan-rao-v-indian-renewable-development-agency-2016case-summary\/#Issues_framed\" >Issues framed<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/fawyerz.in\/judgments\/banking-and-insurance-law\/sampelly-satyanarayan-rao-v-indian-renewable-development-agency-2016case-summary\/#Subordinate_Court_Judgment\" >Subordinate Court Judgment\u00a0\u00a0<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/fawyerz.in\/judgments\/banking-and-insurance-law\/sampelly-satyanarayan-rao-v-indian-renewable-development-agency-2016case-summary\/#Judgment_of_Sampelly_Satyanarayan_Rao_v_Indian_Renewable_Development_Agency\" >Judgment of Sampelly Satyanarayan Rao v. Indian Renewable Development Agency<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/fawyerz.in\/judgments\/banking-and-insurance-law\/sampelly-satyanarayan-rao-v-indian-renewable-development-agency-2016case-summary\/#Read_the_Judgment_Below\" >Read the Judgment Below<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"Facts_of_Sampelly_Satyanarayan_Rao_v_Indian_Renewable_Development_Agency\"><\/span><span style=\"color: #993300;\"><b>Facts of Sampelly Satyanarayan Rao v. Indian Renewable Development Agency\u00a0\u00a0<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Sampelly Satyanarayan Rao (Original Accused) is Director of the Appellant company whose cheques have been Dishonoured. The company is engaged in the business of power generation.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Respondent, (Original Complainant) is a government of India enterprise and is engaged in development of renewable energy.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Appellant company applied for a loan, which was granted by the Respondent company vide loan Agreement dated 15.03.2001. As per the loan Agreement, the respondent agreed to advance a loan of Rs. 11.50 crores.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The Agreement recorded Post-Dated cheques towards payment of installments of Loan and as security.\u00a0<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">On presentation of the said cheques by the Respondent, they were Dishonoured. Consequently, a Criminal Complaint u\/s 138 of the NI Act was filed by the Respondent company.<\/span><\/li><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Thereafter, the Appellant, (original Accused) approached the High Court seeking quashing of the criminal proceedings. He contended that<\/span><span style=\"font-weight: 400;\"> the cheques were given by way of security as mentioned in the agreement and that on the date the cheques were issued, no debt or liability was due. Thus, dishonour of post-dated cheques given by way of security did not fall under section 138 of the Act.\u00a0<\/span><\/li><\/ol><h2><span class=\"ez-toc-section\" id=\"Issues_framed\"><\/span><span style=\"color: #993300;\"><b>Issues framed<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><ol><li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Whether post dated cheques given as security can attract criminal liability under section 138 of the Negotiable Instruments Act?<\/span><\/li><\/ol><h2><span class=\"ez-toc-section\" id=\"Subordinate_Court_Judgment\"><\/span><span style=\"color: #993300;\"><b>Subordinate Court Judgment\u00a0\u00a0<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><p><span style=\"font-weight: 400;\">The High Court of Delhi did not accept the contentions and held that <\/span><span style=\"font-weight: 400;\">in the present case when the post-dated cheques were issued, the loan had been sanctioned and the cheques were cheque issued for a debt in present but payable in future. Hence, I find no reason to quash the complaints. Therefore, the petition for quashing was dismissed.<\/span><\/p><p><span style=\"font-weight: 400;\">The Appellant being aggrieved by the dismissal of the petition filed an appeal to the Hon\u2019ble Supreme Court of India. <\/span><\/p><h2><span class=\"ez-toc-section\" id=\"Judgment_of_Sampelly_Satyanarayan_Rao_v_Indian_Renewable_Development_Agency\"><\/span><span style=\"color: #993300;\"><b>Judgment of <\/b><\/span><span style=\"color: #993300;\"><b>Sampelly Satyanarayan Rao v. Indian Renewable Development Agency<\/b><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2><p><span style=\"font-weight: 400;\">The Hon\u2019ble Supreme Court analysed section 138 of the Negotiable Instruments Act, the court also interpreted the phrase \u201cDischarge of Legally Enforceable Debt\u201d.<\/span><\/p><p><span style=\"font-weight: 400;\">The court held that Dishonour of Post-Dated cheque issued for discharge of later liability is clearly covered by the statute. Admittedly, in this case, on the date of the encashment of the cheque there was a debt\/liability present in terms of the loan agreement<\/span><span style=\"font-weight: 400;\">.\u00a0<\/span><\/p><p><span style=\"font-weight: 400;\">The Supreme court dismissed the Appeal holding that there is no illegality in criminal complaints u\/s 138 of the NI Act, filed by the Respondents as there was a legally enforceable debt at the time of dishonour of the post-dated cheques.\u00a0<\/span><\/p><h2><span class=\"ez-toc-section\" id=\"Read_the_Judgment_Below\"><\/span><span style=\"color: #993300;\"><strong>Read the Judgment Below<\/strong><\/span><span class=\"ez-toc-section-end\"><\/span><\/h2>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<div class=\"elementor-element elementor-element-ad13ebd elementor-widget elementor-widget-pdfjs-viewer\" data-id=\"ad13ebd\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"pdfjs-viewer.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t<iframe width=\"\" height=\"700\" src=\"https:\/\/fawyerz.in\/judgments\/wp-content\/plugins\/pdfjs-viewer-for-elementor\/\/assets\/js\/pdfjs\/web\/viewer.html?file=https:\/\/fawyerz.in\/judgments\/wp-content\/uploads\/Sampelly-Satyanarayan-Rao-v.-Indian-Renewable-Development-Agency-AIR-2016-SC-4363-2.pdf\"><\/iframe>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>In this Landmark case, the Hon\u2019ble Supreme Court of India decided on validity\/inclusion of Post-Dated cheques given as \u201csecurity\u201d against a Loan under section 138 of the Negotiable Instruments Act, 1881.<\/p>\n","protected":false},"author":3,"featured_media":4914,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"site-sidebar-layout":"default","site-content-layout":"","ast-site-content-layout":"default","site-content-style":"default","site-sidebar-style":"default","ast-global-header-display":"","ast-banner-title-visibility":"","ast-main-header-display":"","ast-hfb-above-header-display":"","ast-hfb-below-header-display":"","ast-hfb-mobile-header-display":"","site-post-title":"","ast-breadcrumbs-content":"","ast-featured-img":"","footer-sml-layout":"","ast-disable-related-posts":"","theme-transparent-header-meta":"","adv-header-id-meta":"","stick-header-meta":"","header-above-stick-meta":"","header-main-stick-meta":"","header-below-stick-meta":"","astra-migrate-meta-layouts":"default","ast-page-background-enabled":"default","ast-page-background-meta":{"desktop":{"background-color":"var(--ast-global-color-4)","background-image":"","background-repeat":"repeat","background-position":"center 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