ASHOK BHUSHAN, K.M.JOSEPH
BASALINGAPPA – Appellant
Versus
MUDIBASAPPA – Respondent
Based on the provided legal document, here are the key points regarding the case:
Case Details * Case Name: Basalingappa vs. Mudibasappa * Court: Supreme Court of India * Judges: Ashok Bhushan, K.M. Joseph, JJ. * Criminal Appeal No.: 636 of 2019 (Arising Out of SLP(Criminal) No. 8641 of 2018) * Date Decided: 09-04-2019 * Subject: Negotiable Instruments Act - Presumptions and Burden of Proof * Acts Referred: Criminal Procedure Code (S.378(4)), Evidence Act (S.4, S.3), Negotiable Instruments Act (S.138, S.139, S.118, S.118(a), S.42) (!)
Important Legal Principles * The presumption under Section 139 is rebuttable on a preponderance of probabilities. * The Court cannot insist on a person to lead negative evidence. (!) * An accused is not required to examine himself to discharge the burden of proof. (!) * Section 139 imposes an evidentiary burden on the accused, not a persuasive burden. (!) * It is not necessary for the accused to disprove the existence of consideration by way of direct evidence. (!) * Even evidence adduced on behalf of the complainant can be relied upon by the accused to raise a probable defense. (!)
Facts of the Case * The complainant alleged that the accused requested a hand loan of Rs. 6,00,000/- for urgent family necessities. * A cheque dated 27.02.2012 for Rs. 6,00,000/- was issued by the accused but returned by the bank with the endorsement "Funds Insufficient" on 01.03.2012. * The complainant stated the loan was given in November 2011, while the cheque was dated 27.02.2012. * The trial court acquitted the accused, finding that the complainant failed to prove his financial capacity to lend such a large amount. * The High Court set aside the acquittal and convicted the accused. * The Supreme Court allowed the appeal, restoring the trial court's acquittal. (!)
Arguments and Findings * Defense Argument: The accused raised a probable defense questioning the complainant's financial capacity. The complainant was a retired employee (retired in 1997) who had encashed retirement benefits of Rs. 8,00,000/-. Evidence on record indicated the complainant had paid out approximately Rs. 18 lakhs in two years to various persons, raising doubts about his ability to lend Rs. 6,00,000/- without proper documentation. (!) * Prosecution Argument: The signature on the cheque was admitted, raising a presumption under Section 139 that it was for a legally enforceable debt. The accused failed to prove any probable defense. (!) * Supreme Court Finding: The Supreme Court held that the trial court's finding was not perverse. The accused successfully raised a probable defense by casting doubt on the existence of a legally enforceable debt through the complainant's lack of financial capacity evidence. The High Court erred in setting aside the acquittal. (!)
Result * Appeal allowed. * Judgment of the High Court set aside. * Judgment of the trial court (acquittal) restored. (!)
JUDGMENT :
ASHOK BHUSHAN, J.
1. This is an appeal by accused challenging the judgment of the High Court of Karnataka dated 04.07.2018 by which judgment the Criminal Appeal filed by the complainant against the acquittal of the accused has been allowed and the accused has been convicted under Section 138 of the Negotiable Instruments Act, 1881 and sentenced to fine of Rs. 8,00,000/-, in default of which to undergo simple imprisonment for three months.
2. The brief facts of the case for deciding the appeal are:-
2.1 The complainant gave a notice dated 12.03.2012 to the accused, the appellant stating dishonour of cheque dated 27.02.2012 for an amount of Rs. 6,00,000/-for want of sufficient funds. Thereafter, on non-payment of the amount, a complaint dated 25.04.2012 was filed by the complainant under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as "Act, 1881).
2.2 Allegation in the complaint was that the accused requested the complainant to lend a hand loan to meet out urgent and family necessary for a sum of Rs. 6,00,000/-. Complainant lent hand loan of Rs. 6,00,000/-dated 27.02.2012 in favour of the accused. A cheque dated 27.02.2012 for Rs. 6,00,000/-was g
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No cases identified as overruled, reversed, abrogated, or otherwise treated as bad law. All references treat the cases (primarily *Basalingappa v. Mudibasappa, (2019) 5 SCC 418*) positively or neutrally, with no explicit negative treatment such as "overruled," "reversed," "criticized," "questioned," or "abrogated."
The vast majority of cases (~95%) fall into this category. They explicitly rely on, quote, summarize, or apply principles from *Basalingappa v. Mudibasappa, (2019) 5 SCC 418*, often with phrases like "relied upon," "held as under," "summarized the principles," "law settled by," "in support of his contention," or "beneficial reference may be made." Examples:
Anbarasu VS Mukanchand Bothra (Deceased) - 2019 0 Supreme(Mad) 2137: "Damodara Naidu... and Basalingappa... to show that a duty is cast upon the complainant"
N. C. Sareen VS Madan Vasudeva - 2019 0 Supreme(HP) 2036: "in view of the law settled by... Basalingappa"
Sony Pharmaceuticals VS Nagaraj - 2019 0 Supreme(Kar) 2240: "Hon'ble Apex Court in... Basalingappa... has held that"
Girdharilal VS State Of Maharashtra - 2019 0 Supreme(Bom) 2292: "The Hon'ble Supreme Court in... Basalingappa... again reiterated"
APS FOREX SERVICES PVT. LTD. VS SHAKTI INTERNATIONAL FASHION LINKERS - 2020 2 Supreme 320: "Relying upon the decision... in Basalingappa"
D M Finance (Partnership Firm) Jayesh D Thakkar, Manager VS State Of Gujarat - 2020 0 Supreme(Guj) 956: "Apex Court judgment... in Basalingappa"
Indra VS Dharam Pal Singh - 2021 0 Supreme(UK) 675: "discussed in... Basalingappa"
Keshav Kumar Katendra v. Rejnald Peter - 2021 Supreme(Online)(Chh) 2754: "Highlights the burden... Basalingappa v. Mudibasappa"
This pattern dominates, indicating strong positive treatment as authoritative precedent on NI Act presumptions under Sections 118(a) and 139.
Sancha Bahadur Subba VS Ramesh Sharma - 2020 0 Supreme(Sikk) 3: "The circumstances... can be distinguished from the ratio in Basalingappa (supra)"
N. Krishnappa Son Of Narasappa VS K. Kumar - 2020 0 Supreme(Kar) 1593: "distinguished the judgment in Mudibasappa s case"
These explicitly note factual or contextual differences, treating *Basalingappa* as good law but not directly applicable.
Standalone summary references without strong reliance or distinction:
Nagaraj Shankar Shet VS Abdul Rasheed - Crimes (2020): "learned counsel... has relied on... Basaling Vs.Mudibasappa" (lists alongside another case without elaboration)
Vishal S/o. Shrinivas Malpani VS Prakash Kadappa Hegannawar - 2020 0 Supreme(Kar) 1977: "Basalingappa v. Mudibasappa reported in 2019 (3) KCCR 2473" (mere citation in list)
These show neutral acknowledgment rather than active application.
None. All cases contain clear indicators of treatment (e.g., "relied upon" for followed; "distinguished" for distinguished). No ambiguous phrasing like partial quotes without context or conflicting signals.
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