High Court Reinstates Conviction in Cheque Dishonour Case: “Existence of Legal Liability Not in Dispute” Asserts Justice Gupta

In a significant ruling, the Punjab and Haryana High Court, led by Hon’ble Mr. Justice Deepak Gupta, has overturned an appellate court’s judgment, reinstating the conviction of an individual involved in a cheque dishonour case under Section 138 of the Negotiable Instruments Act, 1881.

The case, which has seen various twists and turns, culminated in a decisive judgment pronounced on November 2, 2023. The petitioner, Girraj Sharma, had initially secured a conviction against the respondent, Devender, in the trial court. However, this conviction was later reversed by the appellate court, leading to the current appeal in the High Court.

Justice Gupta, in his ruling, emphasized the undeniable presence of a legal liability, stating, “Once the signature on the cheque was admitted by the accused in so many words... the existence of legal liability remained not in dispute at all, in view of presumption under Section 139 of the NI Act.” This observation was pivotal in the court’s decision to set aside the appellate court’s judgment and restore the trial court’s conviction and sentence.

The case revolved around a cheque of ₹1,75,000, which was returned due to an incomplete signature. The High Court scrutinized the evidence and found that the appellate court’s judgment was based on conjectures and had misappreciated the facts.

Furthermore, the High Court delved into the delay in the filing of the appeal by the accused, noting that the plea taken by the accused was “absolutely not sustainable.” This formed another crucial part of the judgment as the High Court reversed the appellate court’s decision regarding the condonation of delay.

 Date of Decision: 02.11.2023

 GIRRAJ SHARMA VS DEVENDER