IN THE HIGH COURT OF KARNATAKA AT BANGALORE
A. S. Pachhapure, J.
J. Emmars —Appellant
Vs.
Perfect Industries and Products and others —Respondent
Criminal Appeal No. 1793 of 2007
Decided on : 24-12-2010
Negotiable Instruments Act - Acquittal - Section 138 - 138 - Summary of the acts and sections referenced and discussed by the court: The court discussed Section 138 of the Negotiable Instruments Act, which deals with the dishonor of cheques due to insufficient funds. The court also referred to Section 139 of the Act, which deals with the presumption in favor of holder. The court's decision was influenced by the interpretation of these provisions and their application to the evidence presented in the case.
Fact of the Case:
The appellant filed a complaint against the respondents for dishonor of a cheque issued towards discharge of a liability. The trial court acquitted the respondents, leading to the appellant's appeal.
Finding of the Court:
The court found that the appellant failed to prove the case beyond doubt, and the evidence presented raised doubts about the authenticity of the transaction and the authority of the appellant's representative to depose before the court.
Issues: The main issue was whether the appellant had grounds to warrant interference in the acquittal order.
Ratio Decidendi: The court held that the appellant failed to discharge the initial burden of establishing the liability, and therefore, the presumption under Section 139 of the Act could not be raised. The court also emphasized the principle of slow interference with acquittal judgments on appeal.
Final Decision: The appeal was dismissed, affirming the acquittal of the respondents.
A. S. Pachhapure , J.—The appellant has challenged the Judgment and Order of the Court below, granting acquittal of the respondents for the charge under Section 138 of the Negotiable Instruments Act [hereinafter called as â‚Å“The Actâ‚ for short].
2. The facts relevant for the purpose of this appeal are as under:
The appellant submitted a complaint before the trial Court stating that towards discharge of the liability due and payable, the respondents issued a cheque bearing No. 146532 dated 15.07.2003 for a sum of Rs. 6,00,000-00 drawn on Central Bank, Bangalore, in the name of the appellant with a premise that on presentation of the said cheque on the due date, the same will be honoured. The presentation of the cheque was postponed on number of occasions on the request of the respondents and finally, when the appellant presented/that cheque through the banker i.e., the Syndicate Bank, Shanthinagar, Bangalore, it returned with an endorsement as accounts closed.
The cheque was signed by the respondents 2 and 3 on behalf of respondent No. l, which is a firm and respondent No. 2 is the Managing Partner and respondent No.3 is the partner of the 1st respondent firm. Thus, the appellant issued a notice, calling upon the respondents to make the payment and despite the service of notice, the respondents did not comply the same. The notice sent by the registered post was returned as refused. In the circumstances, he submitted a complaint against the respondents to take action for the offence punishable under Section 138 of the Act.
In response to the process issued, the respondents appeared their plea for the offence under Section 138 of the Act was recorded. The respondents pleaded not guilty and claim to be tried. The appellant examined the power of attorney holder P.W. 1 and two witnesses P.Ws. 2 and 3 and in their evidence got marked the documents Exs. P1 to 24. The statements of the respondents were recorded under Section 313, Cr. P. C. They have taken the defence of total denial. The 2nd respondent examined herself as D.W. 1 and in the evidence got marked the documents Exs. Dl to 11.
The trial Court after hearing the learned counsel for the parties and on appreciation of the material on record, ordered acquittal and aggrieved by the same, the present appeal has been filed.
3. I have heard the learned counsel for the appellant and also the respondents.
4. The point that arises for my consideration is:
Whether the appellant has made out any grounds to warrant the interference in the Judgment and Order of acquittal?
5. It is the contention of the learned counsel for the appellant that though the appellant examined his power of attorney as P.W. 1, his evidence is sufficient to award conviction and when the signature on the cheque was admitted by the respondents 2 and 3, there arises a presumption under Section 139 of the Act and therefore, the trial Court committed an error in granting an acquittal. So also, it is his submission that the power of attorney is valid and authorized P.W. 1 to give evidence before the Court to appear and conduct the cases etc. In the circumstances, he further submits that the evidence of P.W.1 could have been accepted in toto. On these grounds, he has sought for setting aside the acquittal and to award conviction.
Per contra, the learned counsel for the respondents has supported the Judgment and Order of acquittal.
6. I have scrutinized the evidence led by the parties and also the documents admitted in evidence.
7. At the first instance, to consider the special power of attorney produced at Ex. P1, it is relevant to note that it is a special power of attorney, wherein the appellant has authorized P.W.1 to appear in the cases before the jurisdictional Court at Bangalore to conduct Negotiable Instruments Act cases, to engage advocate, to file appeal or revision, to give evidence in the Court, to file complaint, withdraw any complaint if the matter is settled outside the Court and to do all other acts necessa
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