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IN THE HIGH COURT OF KARNATAKA, KALABURAGI BENCH
M.G.UMA
Beereshwar Co. Operative Credit Society Ltd, Represented By Its, Authorized Officer, Sunil Gopal Masumali – Appellant
Versus
Hemavati, W/o. Mallikarjun – Respondent
JUDGMENT :
M.G. UMA, J.
The appellant being the complainant in C.C.No.661/2018, on the file of the learned II Additional Civil Judge and Judicial Magistrate First Class-II, Bidar, (for short ‘the Trial Court’), is impugning the judgment dated 09.02.2022, acquitting the accused for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (for short ‘N.I.Act’).
2. Parties are referred to as per their ranking before the Trial Court for the sake of convenience.
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3. The facts of the case in brief are that the complainant has filed the private complaint in PCR No.24/2018, against the accused alleging commission of the offence punishable under Section 138 of the N.I.Act. It is the contention of the complainant that, it is the registered Cooperative Society, which lends the amount to its various members. In all seven persons including the accused have availed loan under Amullya Loan Scheme from the complainant – Society and they have undertaken to repay the loan amount, with weekly installments. The accused stood as surety to the said group of six members and executed necessary documents. Even though borrowers have obtained the loan with surety of the accused, they have
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 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 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.
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.
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 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.
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.
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