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PRITHVIRAJ K. CHAVAN
Arti Rajesh Karangutkar – Appellant
Versus
Anna Rocky Fernandes – Respondent
JUDGMENT
This appeal is directed against a judgment and order of acquittal rendered by the Metropolitan Magistrate 50th Court, Vikroli, Mumbai on 1st September, 2008 in C.C No.1578/SS of 2007, thereby acquitting respondent No.1-accused of an offence punishable under section 138 of the Negotiable Instruments Act, 1881 (for short “N.I Act”).
2. Appellant and respondent No.1 were friends and neighbours. In the month of January, 2007, the appellant had advanced a friendly loan of Rs.3,00,000/- to respondent No.1, pursuant to respondent No.1’s request as she was in financial need due to the ailment of her husband who was suffering from blood cancer as well as daughter of respondent No.1 was also in need of financial help as she was undergoing a training as an Air Hostess.
3. The appellant, on humanitarian grounds, lent an amount of Rs.3,00,000/- to respondent No.1 by way of loan, which she promised to refund by the end of June, 2007. It is the contention of the appellant that in lieu of the said amount, respondent No.1 had issued four cheques, details of which are as under;—
(a) Cheque No.445883 dated 24th July, 2007 for Rs.1,25,000/-;
(b) Cheque No.445881 dated 24th May, 2007 for Rs
The presumption under Section 139 of N.I. Act is a presumption of law, as distinguished from the presumption of facts. Presumptions are rules of evidence and do not conflict with the presumption of i....
The presumption of debt under Section 139 of the Negotiable Instruments Act is not rebutted by mere denial; the accused must provide credible evidence to support their defense.
The issuance of a cheque signifies a legally enforceable debt under Section 138 of the N.I. Act, and the burden to prove otherwise lies with the accused, not the complainant.
Part payments made before cheque presentation can invalidate the enforceability of the debt under Section 138 of the Negotiable Instruments Act.
The issuance of a cheque carries a presumption of consideration, which is rebuttable by the accused. Failure to prove the non-existence of a debt results in liability under Section 138 of the NI Act.
A cheque issued as security does not constitute a legally enforceable debt under Section 138 of the Negotiable Instruments Act, and the presumption of liability can be rebutted by presenting credible....
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