IN THE HIGH COURT OF KARNATAKA
Mohammad Nawaz, J.
Ravichandra V. – Appellant
Versus
Rosi Line Reena Rani – Respondent
Criminal Appeal No. 1244 of 2019
Decided On : 02-12-2021
Negotiable Instruments Act - Acquittal Appeal - Sec. 138 - Summary of Acts and Sections: The court discussed Sec. 138 of the Negotiable Instruments Act, which deals with the dishonor of cheques for insufficiency of funds. The court highlighted the legal presumption available in favor of the complainant when a cheque is dishonored and the accused fails to reply to the legal notice. The court also emphasized the importance of establishing the authenticity of the signature on the cheque and the burden of proof on the complainant to prove the accused's liability.
Fact of the Case:
The complainant invested a sum of Rs.7.00 lakhs in the accused's business with the promise of becoming a partner. A cheque issued by the accused for repayment was dishonored, leading to a legal dispute.
Finding of the Court:
The trial court acquitted the accused, finding that the complainant failed to prove the investment and the authenticity of the accused's signature on the cheque.
Issues: The key issues were the establishment of the investment by the complainant, the authenticity of the accused's signature on the cheque, and the legal liability of the accused under Sec. 138 of the Negotiable Instruments Act.
Ratio Decidendi: The court held that the complainant failed to provide sufficient evidence to prove the investment and the authenticity of the accused's signature on the cheque, leading to the acquittal of the accused.
Final Decision: The Criminal Appeal was dismissed, upholding the trial court's decision to acquit the accused.
JUDGMENT :
1. This appeal is by the complainant against the Judgment and Order of acquittal dtd. 23/4/2019 passed in C.C. No.26420/2017, on the file of the Court of XXII Addl. C.M.M., Bengaluru, acquitting the accused for an offence punishable under Sec. 138 of the Negotiable Instruments Act.
2. Heard both side and perused the material on record.
3. The case of the complainant is that, accused is running a business in the name and style of M.R. Enterprises and she is the Proprietor and Director. She was selling mobile phones, mobile spare parts, sim-cards etc. The complainant was working with the accused in her office situated at Chandra Layout, Bengaluru and both are friends. The accused requested the complainant to become a partner in the said enterprises and believing her words, the complainant invested a sum of Rs.7.00 lakhs in the last week of September 2016. However, the accused did not induct the complainant as a partner in the business, instead stated that the business is running under loss. The accused also assured that the amount will be settled within 6 months and after the said period, a cheque bearing No.076374 dtd. 21/6/2017 drawn on Axis Bank, Nagarabhavi Branch, Bengaluru, was issued to the complainant for a sum of Rs.7.00 lakhs towards repayment of the money invested by him, with a promise that on presentation of the said cheque, the same will be honoured.
4. The complainant presented the cheque to his banker i.e., Kotak Mahindra Bank, Banashankari Branch, Bengalur and the said cheque came to be dishonoured on 11/9/2017 for the reason 'drawers signature differ'. Thereafter, the complainant informed the same to the accused and requested her to return the amount however, the accused failed to return the amount, as such with no other alternate remedy, he issued a legal notice on 9/10/2017 by way of RPAD. In spite of service of the said notice on the accused on 10/10/2017, she failed to reply to the said legal notice and repay the amount within the stipulated time and therefore, committed an offence under Sec. 138 of the N.I. Act.
5. The complainant got himself examined as P.W.1 and got marked Exs.P1 to 5. The accused got examined herself as D.W.1 and marked Exs.D1 and 2.
6. The trial Court considering the oral and documentary evidence on record, acquitted the accused by its Judgment and Order dtd. 23/4/2019 passed in C.C. No.26420/2017.
7. The learned counsel for the appellant has contended that the entire approach of the trial Court for acquitting the accused and the reasons assigned for acquittal are not in accordance with law. He has contended that the trial Court has made much about the admission given by the complainant that he does not remember the cheque number as well as the bank. He contends that even though the complainant has been able to mark the relevant documents including the cheque in possession which is signed by the accused, the trial Court has erroneously acquitted the accused holding that he has not at all paid a sum of Rs.7.00 lakhs to the accused and he has also failed to examine his sister and friend to establish the fact that the amount was paid to the accused. It is his further contention that the cheque in question admittedly belong to the accused and the said cheque was dishonoured by the bank and therefore, there is a legal presumption available in favour of the complainant. He contends that the accused is in the habit of putting different signatures to different documents and therefore the endorsement issued by the bank should not have been made a ground for acquitting the accused. He contends that the accused has not replied to the legal notice and therefore, she has not rebutted the presumption in favour of the complainant.
8. The learned counsel for the respondent has contended that the complainant was working in M.R.Enterprises, which was run by the accused. He submits that at no point of time, the accused had requested the complainant to join the said firm as a partner and received a sum
The main legal point established in the judgment is the burden of proof on the complainant to establish the authenticity of the accused's signature on the dishonored cheque and the liability of the a....
The court emphasized the importance of clean hands doctrine and the burden of proof in establishing a legally enforceable debt under the Negotiable Instruments Act.
The presumption under Section 139 of the Negotiable Instruments Act places the burden on the accused to prove that a cheque was not issued for a legally recoverable debt, which was not met in this ca....
The main legal point established in the judgment is that the transaction between the parties was of a civil nature, and the complainant's attempt to give a criminal color to the transaction was imper....
The burden of proof lies on the complainant to establish the existence of a legally enforceable debt and the execution of the cheque, especially when the accused denies the transaction.
The judgment emphasizes the importance of complying with the mandatory provisions of the N.I. Act, particularly regarding the issuance of a legal notice demanding the cheque amount and the establishm....
The presumption under Section 139 of the Negotiable Instruments Act is rebuttable, and the onus is on the complainant to prove the offence beyond reasonable doubt.
The main legal point established in the judgment is the requirement for the complainant to prove the existence of a legally enforceable debt or liability beyond reasonable doubt, and the rebuttable n....
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