IN THE HIGH COURT OF JUDICATURE OF BOMBAY BENCH AT NAGPUR
AVINASH G. GHAROTE, J.
Vikky S/o Abhay Nikose – Appellant
Versus
M/s Navbharat Press – Respondent
Criminal Revision Application No. 108 of 2021
Decided On : 15-03-2022
Indian Evidence Act, 1872 - Section 85 - Negotiable Instruments Act, 1881 - Section 138, 141, 142 (1), (1)(a) - Code of Criminal Procedure, 1973 - Section 357(3) - Powers-of-Attorney Act, 1882 - Registration Act, 1908 - Section 33(1), (2), 32, - Indian Partnership Act - Section 18 and 19 - Notaries Act, 1952 - Transfer of Property Act, 1882 - Section 3 - Indian Succession Act, - Section 63 - Partnership Firm - Cheques - Dishonoured - Complainant is a partnership firm dealing in business of publication of advertisement in newspaper, local daily - Applicant/accused is Proprietor of M/s Reena Art Advertising Agency - It is alleged that there were transactions between complainant and accused, who caused to be published advertisements of his clients in ‘Navbharat’ through complainant and on every gross bill amount, accused was entitled to 15% commission - Four all drawn on Shikshak Sahakari Bank Ltd. Branch Panchpaoli, Nagpur, were claimed to have been issued by accused/applicant in favour of complainant - All these cheques were presented for realization by complainant with its Bank namely, Bank of Maharashtra, and were returned as dishonoured - Whether a complaint filed by a Company under Section 138 of Negotiable Instruments Act through a power-of-attorney, was capable of being taken cognizance – Held, Plea put forth that complaint was not only infirm as it was not presented by a person legally competent to do so, on account of absence of availability of presumption under Section 85 of Evidence Act, but even otherwise, on merits of matter, was fraught with contradictions, which have not been explained - True it is that there is a presumption available to complainant, however, same is not absolute but is rebuttable - Rebuttal can be either by way of leading defence evidence or bringing out relevant material by way of cross-examination, or on failure of complainant to explain circumstances in which cheques fell into its hands, or to satisfy requirements of law in that regard - All these factors, unfortunately have gone unnoticed by Courts below which has resulted in miscarriage of justice, as even on merits it has been brought on record that there was no credibility with plea put forth by complainant for having custody and consequent entitlement to cheques in question due to which presumption stood rebutted - Though there are concurrent findings rendered by Courts below, in view of discussion as made above, Court is constrained to interfere in judgments - Resultantly, criminal revision application is allowed and both judgment and sentence awarded by learned Judicial Magistrate, First Class by its judgment and judgment of learned Sessions Court confirming conviction are hereby quashed - Applicant stands acquitted of offence punishable under Section 138 of Negotiable Instruments Act. - Application allowed.
JUDGMENT :
AVINASH G. GHAROTE, J.
1. Heard Mr. Gaikwad, learned Counsel for the applicant and Mr. Salunkhe, learned Counsel for the respondent. Rule. Rule made returnable forthwith. Heard finally with the consent of the learned Counsel for the rival parties.
2. The present application raises an interesting question regarding the presumption under Section 85 of the Indian Evidence Act, 1872. To understand the position appropriately, few facts are narrated as under:
3. The learned Trial Court by the judgment dated 07.05.2013 has convicted the accused for the offence punishable under Section 138 of the Negotiable Instruments Act and has sentenced him to suffer R.I. for three months. A further compensation under Section 357(3) of the Code of Criminal Procedure of Rs. 70,000/- has been directed to be paid to the complainant within one month from the date of order, in default, further R.I. for six months has been awarded. The appeal filed against this conviction and sentence came to be dismissed by the learned Sessions Court by the Judgment dated 07.07.2021, resulting in filing of the present revision.
4. Mr. Gaikwad, learned Counsel for the applicant contends, that the institution of the complaint itself was infirm in as much as though the complainant was a partnership firm, the complaint has been filed by one Mahesh Prasad Sarangi claiming to be authorized signatory/Power of Attorney (POA) of the firm. The complaint has been filed on 22.02.2012. Inviting my attention, to Exh.54 the Special Power of Attorney dated 03.06.2009, executed by the then partners of the firm, in favour of Mr. Mahesh Prasad Sarangi, he contends that, the said power of attorney does not bear the signature of the witnesses, nor does it bear the signature of the said Mahesh Prasad Sarangi in whose favour the same has been executed. It is further contended that the endorsement of the Notary thereupon merely states “attested” above the signature of the Notary. It is, thus, contended that, in view of the requirement of Section 85 of the Evidence Act there was no presumption available in respect of the Special Power of Attorney (Exh.54), as the same was not authenticated and
A.C. Narayanan vs. State of Maharashtra and Others
D.R. Rathna Murthy vs. Ramappa
H. Venkata Sastri and Sons and Others vs. Rahilna Bi and Others
Jugraj Singh and Another vs. Jaswant Singh and Others
M/s. Credential Finance Ltd. vs. State of Maharashtra and Others
M/s. Electric Construction and Equipment Co. Ltd. vs. M/s. Jagjit Electric Works, Sirsa (Haryana)
Syed Abdul Khader vs. Rami Reddy and Others
Seth Beni Chand (Since Dead) Now by LRs. vs. Smt. Kamla Kunwar and Others
Wali Mohammad Chaudhari and Others vs. Jamal Uddin Chaudhari
SupremeToday
Punishment under Section 138 of Act is not a means of seeking retribution but a means to ensure payment of money.
The main legal point established in the judgment is that the initiation of criminal prosecution without the power of attorney and the subsequent production of power of attorney of the year 2006 vitia....
The court affirmed that a power of attorney, duly notarized and authenticated in a foreign jurisdiction, is valid under Indian law, regardless of a lack of reciprocity notification, emphasizing inter....
The burden of proof on the complainant to establish the transaction and execution of the cheque under Section 138 of the Negotiable Instruments Act.
Admission of cheque execution triggers Sections 118/139 NI Act presumptions of debt; burden on accused to rebut by evidence; trial acquittal ignoring presumption and shifting onus to complainant is p....
: Dishonour of cheque – In a case where complainant is a company, an authorized employee can represent the company – Once averment to this effect is made in complaint, it is sufficient for Magistrate....
The presumption in favor of the cheque holder established under the Negotiable Instruments Act can be rebutted by the accused through a probable defense, and the prosecution must prove the existence ....
The court affirmed that a complaint under Section 138 requires valid authorization from a company’s board, and without it, the complaint is invalid regardless of other evidence.
The main legal point established in the judgment is that a complaint filed without proper authorization and the failure to include the partnership firm as a co-accused renders the complaint not maint....
Login now and unlock free premium legal research
Login to SupremeToday AI and access free legal analysis, AI highlights, and smart tools.
Login
now!
India’s Legal research and Law Firm App, Download now!
Copyright © 2023 Vikas Info Solution Pvt Ltd. All Rights Reserved.