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IN THE HIGH COURT OF KARNATAKA KALABURAGI BENCH
M.G.Uma
Sidaray M. Biradar – Appellant
Versus
Basavaraj S/O Mallappa Yadavannavar – Respondent
| Table of Content |
|---|
| 1. complainant impugns acquittal for dishonoured cheque. (Para 1 , 2 , 3) |
| 2. trial court's proceedings and parties' appearances. (Para 4 , 5 , 6) |
| 3. complainant alleges cheque dishonoured as debt repayment. (Para 7 , 8 , 9 , 10) |
| 4. accused disputes the legitimacy of debt and cheque. (Para 11 , 12) |
| 5. legal presumption under n.i. act regarding debt. (Para 13 , 14 , 15) |
| 6. accused's inconsistent defenses fail to rebut presumption. (Para 16 , 17 , 18) |
| 7. trial court's errors lead to wrongful acquittal. (Para 19) |
| 8. conclusion: conviction and imposition of fine. (Para 20 , 21 , 22) |
JUDGMENT :
M G Uma, J.
The complainant in C.C.No.5324/2018 on the file of learned II Additional Civil Judge and JMFC-II Vijayapur (for short ‘Trial Court’), registered for the offence punishable under Section 138 of Negotiable Instruments Act, 1881 (for short ‘N.I.Act’), is impugning the judgment of acquittal dated 09.10.2020, acquitting the respondent/accused for the above said offence.
2. For the sake of convenience, the parties are referred to as per their rank before the Trial Court.
3. The complainant has filed the private complaint in P.C.No.624/2018 before the Trial Court against the accused alleg
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.
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.
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 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.
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.
Presumption of legally enforceable debt arises upon admission of cheque by the accused; failure to rebut results in liability for cheque dishonor.
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.
The burden of proof, legal presumptions, and the accused's admission of debt in the issuance of the cheque are crucial in determining liability under the Negotiable Instrument 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.
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