SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2025 Supreme(Kar) 262

IN THE HIGH COURT OF KARNATAKA AT BENGALURU 
SHIVASHANKAR AMARANNAVAR, J.
S. Ramchandrappa S/o Late Sonnappa - Appellant
Versus
N. Srinivasa Murthy S/o Late Nawrasappa - Respondent
Criminal Revision Petition No. 1020 of 2017
Decided On : 01-07-2025

Advocates:
Advocate Appeared:
For the Appellant : J.S. Halashetti
For the Respondent: Abhilash H.S.

A Power of Attorney holder can only represent a complainant in a cheque dishonour case if they have personal knowledge of the transaction. The presumption under Section 139 of the Negotiable Instruments Act can be rebutted by sufficient evidence.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Conviction for cheque dishonour - Appellant convicted in trial court and appeal court affirmed decision, but later acquitted on review - Presumption under Section 139 rebutted by the accused, showing lack of evidence for loan claim. (Paras 1, 4, 6, 16)

(B) Power of Attorney - Power of Attorney holder can prosecute complaint if they possess personal knowledge of the transaction, and failure to establish such knowledge can invalidate the prosecution. (Paras 9, 10, 12)

Facts of the case:
The accused negotiated a property purchase, took loan from the complainant, and issued post-dated cheques which were dishonoured. The complainant’s case relied on his power of attorney holder, who lacked personal knowledge of the transaction, and discrepancies were found in the testimony and documents presented. (Paras 3, 5)

Findings of Court:
The evidence did not sufficiently establish that the accused borrowed the amount claimed or failed to repay, leading to the conclusion that the conviction was erroneous. (Paras 8, 16)

Issues: Whether the power of attorney holder had sufficient knowledge of the transaction and whether the presumption of debt was conclusively rebutted. (Paras 6, 10)

Ratio Decidendi: The court found that the complaint failed due to inadequate proof of the loan transaction by the complainant, establishing the accused rebutted the presumption of liability under the Negotiable Instruments Act. (Paras 13, 16)

Result: Revision petition allowed; the accused is acquitted under Section 138 of the N.I.Act.

Table of Content
1. revision petition initiation details. (Para 1)
2. court reviewed the lower court's proceedings. (Para 2)
3. details of the loan and cheque transactions. (Para 3)
4. trial court's conviction details. (Para 4)
5. petitioner's arguments on the lack of personal knowledge. (Para 5)
6. reliance on case law regarding power of attorney holders. (Para 6)
7. respondent's argument on notice and cheque admissions. (Para 7)
8. court's examination of records. (Para 8)
9. legal principles regarding power of attorney and presumption under n.i. act. (Para 9 , 10 , 11 , 12 , 13 , 14 , 15 , 16)

ORDER :

1. This revision petition is directed against the judgment dated 24.08.2017 passed in Crl.A.No.608/2015 by the LXVI Additional City Civil and Sessions Judge, Bangalore City where under the judgment of conviction dated 26.03.2015 passed in C.C.No2430/2009 by the XVIII ACMM, Bengaluru convicting the petitioner for the offence punishable under Section 138 of the N.I.Act and sentenced to pay fine of Rs.25,30,000/- and in default to undergo simple imprisonment for one year has been affirmed.

2. Heard learned counsel for the petitioner and learned counsel for the respondent.

3. It was the case of respondent - complainant before the trial Court that petitioner - accused has negotiated with the respondent - complainant to purchase the complainant’s property situated at Kattigenahalli Village, Jala Hobli, Bangalore North Taluk for a total consideration of Rs.1.10 Crores. In pursuance of the contract, an agreement of sale was got executed and registered on 05.07.2007 and the complainant has executed power of attorney in favour of sons of accused R.Prakash and R.Somesh. At the time of execution of GPA, the petitioner - accused has expressed his financial constraints and sought for hand loan of Rs.35,00,000/- from the complainant. Accused promised to repay the said amount within 23 months. The complainant believed the words of accused and advanced Rs.35,00,000/- as hand loan to the accused. In order to repay the amount borrowed the accused said to have issued four post dated cheques in favour of the complainant dated 05.09.2007 for Rs.10,00,000/- and Rs.5,00,000/- and another two cheques dated 05.10.2007 for Rs.10,00,000/- each drawn on State Bank of Mysore, HRBR Layout Branch, Bangalore. During August 2007 the accused had requested the complainant to present the cheques in the month of march 2008. The complainant presented cheque Nos.954076 and 954077 issued for Rs.10,00,000/- and Rs.5,00,000/- and as per memo dated 04.03.2008, both the cheques were returned with endorsement “funds insufficient.” The complainant has also presented other two cheques bearing Nos.954078 and 954079 dated 05.10.2007 and the said cheques were returned unpaid as per memo dated 15.03.2008 with endorsement “funds insufficient.” The accused has requested the complainant to re-present the cheque No.954078 for Rs.10,00,000/- and agreed to pay remaining cheque amount by cash. The complainant got issued legal notice to the accused dated 31.03.2008 calling upon him to pay the amount of cheques. The said notice has been returned to the complainant with an endorsement “unclaimed.” The accused has not paid the amount of cheques within 15 days. Therefore, the complainant initiated proceedings against the petitioner for the offence punishable under Section 138 of the N.I.Act.

4. The complainant has been examined as PW.1.Thereafter he did not appear for cross-examination due to his ill-health. Thereafter, the complainant has executed special power of attorney in favour of his daughter-in-law and she has been examined as PW.2 and got marked Exs.P1 to P13. The statement of the accused has been recorded under Section 313 of Cr.P.C. Exs.D1 to D8 have been got marked in the cross-examination of PW.2. The accused has not entered the witness box to lead defence evidence. The learned Magistrate after hearing both sides and appreciating the evidence on record has convicted the petitioner for th

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
Judicial Analysis

AI

SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top