"Supreme Court Upholds Conviction in Landmark Cheque Dishonor Case: Burden of Proof Sustained Despite New Contention"

07 May 2024 8:19 AM

By: Admin

Negotiable Instruments Act, 1881 - Section 138 - Dishonor of Cheque - Presumption of consideration - Burden of proof - Admitted signature - The appellant filed a complaint against the respondent for dishonoring a cheque issued for partial repayment of an advance amount paid towards the purchase of a property - The Trial Court convicted the respondent, and the conviction was upheld by the Sessions Judge - The respondent raised a new contention before the High Court regarding the circumstances under which he signed the cheque - High Court allowed the Revision Petition, setting aside the conviction order, holding that the appellant had not proved payment of the advance amount, and the agreement for the property transaction was doubtful - On appeal, the Supreme Court reinstated the Trial Court's conviction order, emphasizing that the respondent did not successfully rebut the presumption of consideration arising from the admitted signature on the cheque - The Court considered the respondent's new contention but found it unsubstantiated, as it was raised for the first time during the arguments before the High Court and lacked supporting evidence - The Court modified the sentence to impose an enhanced fine instead of imprisonment, considering the age of the case, the non-commercial nature of the transaction, and the possibility of social and economic changes in the parties' status over time - The respondent was given the option to pay the fine, and in case of default, he would serve a six-month imprisonment.

D.D- September 23, 2021

Triyambak S. Hegde vs Sripad