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2025 Supreme(Kar) 2011

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
G. BASAVARAJA
Rammurthy R, S/O. Ramaiah – Appellant
Versus
Venkatesh Murthy S., S/O Siddappa M. – Respondent


Advocates Appeared:
For the Appellant : Sri. N. Dinesh Rao, Adv.
For the Respondent: Sri. Mahesh S. N., Adv.

Judgement Key Points

What is the scope of an appellate court's interference in an appeal against acquittal under Section 138 of the Negotiable Instruments Act? (!) (!) (!) (!)

Key Points: - The appellant challenged the trial court's acquittal in C.C No. 961/2012 under Section 138 of the NI Act due to alleged inconsistencies and failure to draw adverse inferences [1][3][6][7] - Complainant alleged Rs.4,00,000 hand loan in June 2011, cheque issued on 04.11.2011 dishonored for insufficient funds [3][12][18] - PW1 admitted in cross-examination that cheque was issued on 05.06.2011 (pre-dated) and prior remittances of Rs.60,000 by accused via Exs.D1-D8, contradicting no-transaction claim [13][19][20] - Trial court acquitted accused finding inconsistencies in PW1 evidence, lack of financial capacity of complainant, and rebuttal of Section 139 presumption via Ex.D9(a) showing blank cheque for Rs.40,000 [5][21][25] - Appellate court outlined principles for appeals against acquittal: interference only if perverse, ignores material evidence, or no reasonable view supports acquittal (!) (!) (!) (!) - Court re-appreciated evidence, found trial court's view possible due to PW1 contradictions and accused's documentary proof [19][20][21][24][25] - No reply to notice by accused does not override inconsistencies; financial capacity not sole basis for acquittal [7][9][22][24] - Appeal dismissed, upholding acquittal as trial court's findings not perverse or illegal (!) [25]

What is the scope of an appellate court's interference in an appeal against acquittal under Section 138 of the Negotiable Instruments Act? [p_19][p_21][p_23][p_25]


Table of Content
1. allegation of non-repayment of loan leading to cheque dishonor. (Para 3 , 4 , 6 , 18)
2. trial court's examination of evidence regarding financial transactions. (Para 5 , 8 , 9 , 21)
3. appellant's argument on the insufficiency of trial court's reasoning. (Para 7 , 10 , 25)
4. the appellate court upholds the trial court's ruling on acquittal. (Para 24)

JUDGMENT :

The complainant/appellant has preferred this appeal against the judgment of acquittal passed by the XXI Addl. C.M.M, Bangalore in C.C No. 961/2012 dated 21.05.2014.

3. Brief facts leading to this appeal are that the complainant has filed a complaint under Section 200 of Cr.P.C for the offence punishable under Section 138 of NI Act. It is alleged in the complaint that the accused and complainant are family friends and they know to each other since several years. The accused has approached the complainant in the month of June-2011 for financial assistance of Rs.4,00,000/- for his family necessities and discharged his legal. The complainant has paid a sum of Rs.4,00,000/- to the accused by cash, as a hand loan. The accused agreed to repay the loan within 5-6 months with nominal interest. The accused has not kept

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