The presumption of debt validity under Section 138 obligates the accused to provide evidence to rebut it, shifting the burden of proof to them when the complainant's claims remain unchallenged.

JUDGMENT :

Ahsanuddin Amanullah, J.

Delay condoned.

2. The present petition assails the common Final Judgment and Order dated 15.06.2023 in Crl. R. C. Nos.394-396, 403 & 406 of 2020 (hereinafter referred to as the ‘Impugned Order’) passed by the High Court of Judicature at Madras (hereinafter referred to as the ‘High Court’), whereby the five Criminal Revision cases filed by the petitioners were dismissed and the conviction and sentence, as awarded by separate Judgments and Orders dated 31.10.2017 passed by the Metropolitan Magistrate (Fast Track Court III), Saidapet, Chennai (hereinafter referred to as the ‘Trial Court’) in C.C. Nos.137-141 of 2016 and confirmed by separate Judgments and Orders dated 31.10.2019 passed by the VII Additional Sessions Judge, City Civil Court, Chennai (hereinafter referred to as the ‘First Appellate Court’) in Crl. A. Nos.380- 384 of 2017, were upheld.

BRIEF FACTS:

3. The sole respondent is the complainant. The petitioner no.2 is the proprietor of petitioner no.1 and both are arrayed as accused. It was alleged that the petitioner no.2 was in the business of Cinema Production and for his urgent business needs, he had approached the complainant and borrowed a total sum of Rs.41,28,000/- (Rupees Forty-One Lakhs Twenty-Eight Thousand) in five instalments as a hand loan on 29.08.2015 and promised to repay the same on demand with interest at the rate of 2% per month. Separate Promissory Notes dated 29.08.2015 were executed for each of the instalments in favour of the complainant.

4. In order to discharge the liability of Rs.42,08,000/- (Rupees Forty- Two Lakhs Eight Thousand), a total of five cheques were issued by the accused, which on being presented by the complainant, were returned with the endorsement ‘funds insufficient’. Statutory Notice was issued by the complainant pursuant to which he lodged five complaints in respect of the five dishonoured cheques against the petitioners. The Trial Court convicted the accused under Section 138 ¹[‘138. Dishonour of cheque for insufficiency, etc., of funds in the account.—Where any cheque drawn by a person on an account maintained by him with a banker for payment of any amount of money to another person from out of that account for the discharge, in whole or in part, of any debt or other liability, is returned by the bank unpaid, either because of the amount of money standing to the credit of that account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with that bank, such person shall be deemed to have committed an offence and shall, without prejudice to any other provision of this Act, be punished with imprisonment for a term which may extend to two years, or with fine which may extend to twice the amount of the cheque, or with both:

Provided that nothing contained in this section shall apply unless—

(a) the cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier;

(b) the payee or the holder in due course of the cheque, as the case may be, makes a demand for the payment of the said amount of money by giving a notice in writing, to the drawer of the cheque, within thirty days of the receipt of information by him from the bank regarding the return of the cheque as unpaid; and

(c) the drawer of such cheque fails to make the payment of the said amount of money to the payee or as the case may be, to the holder in due course of the cheque within fifteen days of the receipt of the said notice. Explanation.—For the purposes of this section, “debt or other liabi