Negotiable Instruments - Cheque Bounce - Acquittal - Appeal against acquittal under Section 138 of the Negotiable Instruments Act - Trial court held that complainant failed to prove the cheque was issued in discharge of legally enforceable debt - Presumption under Section 139 rebuttable - Accused raised a probable defense - Appeal dismissed. [Paras 9-11]
Presumption and Burden of Proo...
Criminal Law – Dishonor of Cheque – Sections 138, 139 NI Act – Section 357(3) Cr.P.C. – Legally enforceable debt – Presumption in favor of holder – Failure to reply to legal notice – Accused's failure to respond to legal notice does not automatically assume acceptance of liability – Held: Presumption under Section 139 is rebuttable – Accuse...
Criminal Law – Dishonour of Cheque – Deposit of Compensation – Petition against orders directing deposit of 20% of compensation awarded by the trial court under Section 138 of the Negotiable Instruments Act. The court held that, as per the judgment in Surinder Singh Deswal v. Virender Gandhi, the word "may" in Section 148 of the Act should generally be construed as &quo...
Negotiable Instruments – Dishonour of Cheque – Section 139 NI Act – Section 4 Indian Evidence Act – Presumption of Legally Enforceable Debt – Whether absolute – Held: Presumption under Section 139 NI Act is rebuttable – Complainant must prove pre-existing liability and legally enforceable debt – Failure to produce cogent evidence by complai...
Negotiable Instruments – Interim Compensation – Interpretation of ‘Drawer’ – High Court’s judgment held that authorized signatories of cheques cannot be considered as ‘drawers’ under Section 143-A, NI Act – Supreme Court affirms this interpretation, emphasizing the clear statutory language and legislative intent – Liability for interim co...
Negotiable Instruments Act – Section 138 – Cheque Dishonor – Conviction and Sentence: Petitioner convicted by the trial court for dishonoring a cheque issued to discharge liability. Trial court sentenced petitioner to simple imprisonment for three months and compensation of Rs. 4,80,000/-. On appeal, compensation reduced to Rs. 3,00,000/- by the Additional Sessions Judge, Kullu [...
Negotiable Instruments Act – Interpretation of Sections 138 and 143-A – Supreme Court affirms Bombay High Court’s interpretation that the term “drawer” in Section 143-A of the NI Act refers solely to the issuer of the cheque and does not include authorized signatories of the company. The Court held that the primary liability under Section 143-A is on the drawer, which...
Criminal Procedure – Dismissal of Complaint – The Trial Court dismissed the complaint under Section 256 Cr.P.C. for non-appearance of the complainant on the date fixed for hearing. The complainant argued that his absence was due to an error in noting the date by his counsel. The High Court, upon review, found that the complainant’s presence was not essential on the said date as t...
Presumption under NI Act – Rebuttal – Appeal allowed – Appeal against acquittal under Section 138 NI Act – Respondent issued cheque towards loan repayment, which was dishonored – Trial Court acquitted respondent, failing to properly apply presumption under Sections 118(a) and 139 NI Act – High Court held that once execution of cheque is admitted, presumption of ...
Negotiable Instruments Act – Section 138 Acquittal – High Court Dismisses Appeal Against Acquittal by Trial Court – Petitioner’s Complaint Lacked Credibility – Discrepancies and Inconsistencies in Petitioner’s Testimony and Evidence – Respondent’s Defence Rebutted Presumptions Under Sections 118(a) and 139 of NI Act – Trial Court’s Findin...