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IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH
M.G.UMA
Vishwanath Reddy M.S. – Appellant
Versus
Ratan Hanamant Gosavi – Respondent
| Table of Content |
|---|
| 1. factual background of cheque dishonor case (Para 1 , 2 , 3 , 4 , 5) |
| 2. consideration of the appeal and trial court judgment (Para 6 , 7 , 8 , 9) |
| 3. legal presumptions under n.i. act and evidentiary burden (Para 10 , 11 , 12 , 13 , 14 , 15 , 16) |
| 4. final order and sentence imposed (Para 17 , 18 , 19) |
JUDGMENT :
(M.G.UMA, J.)
The appellant being the complainant in C.C.No.4787/2018 on the file of the learned V-Additional Civil Judge & JMFC Court, Vijayapura [for short, ‘the Trial Court’], is impugning the judgment dated 16.08.2023 acquitting the respondent-accused for the offence punishable under Section 138 of Negotiable Instruments Act, 1881 [for short, ‘the N.I.Act’].
2. Facts of the case in brief are that, the appellant -complainant has filed the private complaint in P.C.No.623/2018 against the respondent-accused alleging commission of the offence punishable under Section 138 of N.I. Act. It is the contention of the complainant that, he is a Businessmen by profession and the accused is a Government Servant. The accused requested for hand loan and accordingly he had lent an amount of Rs.12,00,000/- during April 2017. The accused agreed to repay the same and later is
The court established that once a cheque is issued and signed, a legal presumption exists regarding its use for a valid debt, shifting the burden of proof to the accused to deny its validity.
Presumption of legally enforceable debt arises upon admission of cheque by the accused; failure to rebut results in liability for cheque dishonor.
The issuance of a negotiable instrument establishes a presumption of liability, shifting the burden to the accused to disprove the debt, as established by Sections 118 and 139 of the N.I. Act.
The signed blank cheque carries a legal presumption of liability under the Negotiable Instruments Act, shifting the burden of proof to the accused to demonstrate non-liability.
Court held that issuance of a cheque raises a presumption of debt, shifting the burden to the accused to demonstrate otherwise, particularly upon admission of signature.
A signed cheque creates a presumption of liability in favor of the payee, where the accused must prove otherwise to avoid conviction under Section 138 of the Negotiable Instruments Act.
The court reaffirmed that the burden of proof lies on the accused to disprove the presumption of liability under Section 139 of the Negotiable Instruments Act.
A signed cheque establishes a presumption of liability; the accused must provide evidence to rebut this presumption to avoid conviction under Section 138 of the Negotiable Instruments Act.
Presumption under Section 139 of the Negotiable Instruments Act requires the accused to present credible evidence to rebut the holder's claim of legal liability regarding the cheque issued.
The court held that under Section 139 of the Negotiable Instruments Act, the accused bears the burden to rebut the presumption that a cheque was issued for a valid debt, which he failed to do.
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