The High Court of Delhi has dismissed a criminal revision petition challenging the conviction of a property dealer under Section 138 of the Negotiable Instruments Act, 1881 (NI Act). The Court held that a person who issues a cheque from their personal account to discharge a liability under a settlement agreement cannot evade criminal liability by claiming that the underlying debt belonged to a society, especially when the agreement was executed in an individual capacity.

Justice Swarana Kanta Sharma upheld the orders of the Trial Court and the Sessions Court, directing the petitioner to surrender within three weeks to serve the sentence of one year of simple imprisonment and pay the fine of ₹9,72,000.

Case Background

The case arose from a property transaction dating back to November 6,

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