Punjab & Haryana High Court Rules: Cheque for Bribe Repayment Not Enforceable under Negotiable Instruments Act
The Punjab & Haryana High Court recently clarified that a cheque issued as repayment for a bribe does not qualify as a legally enforceable debt under the Negotiable Instruments Act, 1881. Justice Manjari Nehru Kaul, delivering the judgment in Surinder Singh v. Ram Dev, emphasized that only legally valid obligations are covered by the Act, upholding the trial court's earlier decision to acquit the respondent, Ram Dev.
Background
The case originated when Surinder Singh accused Ram Dev of issuing a cheque worth Rs. 21,00,000 as part of a settlement after Singh had allegedly paid Rs. 1.2 crores to secure jobs in the Punjab Police. When the jobs didn’t materialize, Singh alleged he’d been deceived and filed a complaint after the cheque was dishonored due to a closed account. The trial court, however, concluded that since the cheque was tied to an illegal bribe, it couldn’t be considered a legally enforceable debt under the NI Act.
Legal Debate
The case hinged on whether a cheque given to settle a bribe could be enforced. Singh argued that Dev's issuance of the cheque acknowledged the debt, making it enforceable. However, the trial court held that no debt tied to a bribe could be legally recognized, as Singh had admitted during the trial that the payment was intended as a bribe.
Court’s Decision
Justice Kaul reaffirmed that the NI Act only enforces debts arising from lawful obligations. In her words, "Any debt arising from an unlawful or immoral promise cannot attract the provisions of Section 138 of the Act." The court emphasized that expanding the Act’s scope to include illicit transactions would erode its integrity, as the law intends to support genuine, lawful financial obligations.
Case Summary
Case Name: Surinder Singh v. Ram Dev
Case Number: CRM-A-233-2021
Bench: Justice Manjari Nehru Kaul
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