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2018 Supreme(Bom) 2036

IN THE HIGH COURT OF BOMBAY, GOA BENCH
C.V. Bhadang, J.
Sim Enterprises - Appellant
Vs.
Shaikh Abdul Rashid Choudhary - Respondent
Criminal Appeal No. 10 of 2014
Decided On : 26-02-2018
.

Advocates Appeared:
Prasad Dessai, Adv.

Headnote:

Criminal Procedure Code, 1973 - Section 313 - Income Tax Act - Section 269SS - Negotiable Instruments Act, 1881 - Sections 138, 139 and 118 - Income Tax Returns - Deducting Income Tax - This is an appeal by complainant against acquittal of respondent from an offence punishable - Appellant was in service of central bank and has since retired respondent is said to be a relative of appellant - Appellant is running a business of hardware under name and style as enterprises which is a proprietorship concern - According to appellant respondent was in business of trading iron ore - It was material case that on account of their close relationship appellant had advanced to respondent an amount as a hand loan out of which was given by way of a demand draft and remaining amount was paid in cash - appellant claims that entire amount was out of retrial dues received by appellant - Admittedly there is no document which evidences that appellant had given to respondent - It was contended that towards re-payment of hand loan respondent issued a cheque drawn on his account with syndicate bank which got dishonored on presentation - Held, Even during course of his evidence appellant failed to give date on which amount was given to respondent - In cross examination appellant has admitted that hand loan was given to respondent out of his personal account as also from account of firm - Complaint was filed in capacity of proprietor of proprietary firm - To a specific question whether appellant has paid tax for relevant financial year answer is that entire amount is paid out of retrial dues after deducting income tax - Learned sessions judge found and to my mind rightly so that appellant has made an attempt to dodge question by answering that amount was paid from his retirement dues after deduction of tax - It is now well settled that a statutory presumption arises in favour of complainant where signature on cheque is not disputed - said presumption is a rebuttable presumption - accused can rebut presumption on preponderance of probability which can be done by virtue of cross examination of complainants witness or at time of statement or by leading defense evidence - Question whether presumption stands rebutted or not would depend upon facts and circumstances of each case - Here is a case where appellant has failed to give any particulars as to date and time when he advanced amount which he had paid in cash - There is no writing obtained from respondent and it is also not shown that said amount was reflected in income tax returns of firm in as much as complaint was filed in capacity of proprietor of firm - Appeal is dismissed.

JUDGMENT :

C.V. Bhadang, J.

This is an appeal, by the complainant, against acquittal of the respondent no. 1, from an offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (Act, for short).

2. The appellant was in service of Central Bank of India and has since retired. The respondent no. 1 is said to be a relative of the appellant. The appellant is running a business of hardware, under the name and style as "M/s Sim Enterprises", which is a proprietorship concern. According to the appellant, the respondent no. 1 was in the business of trading iron ore.

3. It was the material case that on account of their close relationship, the appellant had advanced to the respondent no. 1, an amount of Rs.6,00,000/- as a hand loan, out of which Rs.1, 50, 000/- was given by way of a Demand Draft and the remaining amount of Rs.4, 50, 000/- was paid in cash. The appellant claims that the entire amount was out of the retiral dues received by the appellant. Admittedly, there is no document which evidences that the appellant had given Rs.4, 50, 000/- to the respondent no. 1. It was contended that towards re-payment of the hand loan, the respondent no. 1, issued a cheque dated 19.05.2008, drawn on his account with Syndicate Bank, Sanquelim Branch, which got dishonoured on presentation. The appellant issued a statutory notice on 30.05.2008, which was neither replied nor complied with by the respondent no. 1. This led the appellant to file a complaint under Section 138 of the Act. The appellant examined himself and produced the subject cheque along with the cheque return memo and the copy of the legal notice and the A/D card.

4. The learned Magistrate by judgment and order dated 03.05.2011, convicted the respondent no. 1 for the offence punishable under Section 138 of the Act and sentenced him to undergo simple imprisonment for six months and to pay fine of Rs.10, 000/- and in default to undergo simple imprisonment for two months, as also compensation of Rs.6, 00, 000/-. Feeling aggrieved, the respondent no. 1, challenged the same in Criminal Appeal No. 40/2011, before the learned Sessions Judge. The learned Sessions Judge by judgment and order dated 18.02.2013 allowed the appeal and acquitted the respondent no. 1 of the offence punishable under Section 138 of the Act. Feeling aggrieved, the appellant is before this Court.

5. I have heard Shri Dessai, the learned Counsel for the appellant. None appears for the respondent no. 1. With the assistance of the learned Counsel for the appellant, I have gone through the record and the impugned judgment of the learned Sessions Judge.

6. It is submitted by Shri Dessai, the learned Counsel for the appellant that the respondent no. 1, neither issued any reply nor led any evidence in defence. It is submitted that once, the signature on the cheque was not disputed, there is a presumption, which would arise under Section 118 read with Section 139 of the Act, which has not been rebutted by the respondent no. 1. He submits that thus, the learned Sessions Judge was in error in acquitting the respondent no. 1. On behalf of the appellant, reliance is placed on the decision of this Court, in the case of Krishna P. Morajkar Vs. Joe Domnic Ferrao & Another, (2014) 2 BCR(Cri) 738 and Yavatmal District Mahesh Urban Credit Co-op. Society Ltd. Vs. Narayanrao Ukandrao Paikrao, (2011) AllMR(Cri) 2769.

Except this, there are no other contentions raised.

7. I have carefully considered the circumstances and the submissions made. The case made out by the appellant is that he was working in Central Bank of India and has since retired and that he had paid Rs.6, 00, 000/- to the respondent no. 1, out of which, a substantial amount i.e. Rs.4, 50, 000/- were paid in cash, out of the retirement dues. Admittedly, there is no document got executed at the time when the said amount was advanced. The notice as well as the complaint is silent about the date on which the amount is allegedly advanced to the respondent no. 1. Even du



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