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IN THE HIGH COURT OF KARNATAKA AT KALABURAGI BENCH
M.G.UMA
Aravind S/o Siddanagouda Haranal – Appellant
Versus
Gurunath S/o Bheemappa Hugar – Respondent
JUDGMENT :
M.G. UMA, J.
The appellant being the complainant in C.C.No.6317/2021 on the file of the learned V-Additional Civil Judge & JMFC Court, Vijayapura [for short, ‘the Trial Court’], is impugning the judgment dated 09.02.2024 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.710/2017 against the accused alleging commission of the offence punishable under Section 138 of N.I. Act. It is the contention of the complainant that, he was knowing the accused very well as they were close friends. The accused asked for financial help during July, 2014 as he was constructing a house. Accordingly, the complainant lent an amount of Rs.10,00,000/-. During December, 2014 accused again approached the complainant and sought for financial assistance. Accordingly, he paid Rs.5,50,000/-. During June, 2015 the accused again requested for financial help and an amount of Rs.5,00,000/- was paid by the complainant. It is the contention of the complainant that he has paid in all Rs.20,50,000/- to the a
Presumption of legally enforceable debt arises upon admission of cheque by the accused; failure to rebut results in liability for cheque dishonor.
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.
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.
The presumption under Section 139 of the NI Act obligates the accused to provide credible evidence to rebut the claim of issuance of a cheque for a legally enforceable debt.
The absence of evidence for a legally enforceable debt results in the presumption under Section 139 of the Negotiable Instrument Act not operating in favor of the complainant.
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.
The presumption under Section 139 of the Negotiable Instruments Act mandates that once a cheque's execution is admitted, it is presumed to be for a legally enforceable debt, and the burden to rebut t....
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