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KERALA HIGH COURT
R. Basant, J.
Chacko - Appellant
versus
Joseph - Respondent
Crl. A. Nos. 430, 431, & 435 of 1995
Decided on 27-3-2003

Advocates:
Counsel for the parties:
For the Appellant: T.R. Ramachandran Nair.
For the Respondent: Siby Mathew, Philip J. Vettickattu & PP (M.A. Khadirkunju).

IMPORTANT POINT
Burden is on accused to rebut the presumption u/s 139 Negotiable Instruments Act but primary burden rests on complainant to prove his case beyond reasonable doubt.

Headnote:(i) Negotiable Instruments Act, 1881 - Sections 138 & 139 - Post dated cheques allegedly issued for due discharge of legally enforceable debt/liability bounced - Acquittal on a finding that cheques were not proved to have been issued for discharge of any legally enforceable debt/liability - Appeal - Presumption u/s 139 of the Act in favour of complainant - Burden of proof Though burden is upon accused to rebut presumption, burden is not as heavy & onerous as initial paramount burden on prosecution - Prosecution must rest on its merits & improbability of defence is no reason to accept, the, case of prosecution While considering whether burden u/s 139 of the Act had been discharged by accused, Court can not afford to ignore totally improbable & artificial version set up by accused - Defence plea of accused that blank signed cheques were stolen from his book appeared totally unacceptable - Court below erred in its conclusion that cheques had not been issued in discharge of legally enforceable debt. (Paras 13 to 19)

       (ii) Negotiable Instruments Act, 1881 - Section 138 - Cheque was dishonoured on 31-10-1990 Demand notice was issued on 7-11-1990 at the residential address was not served on accused and was returned on 27-11-1990 - Complaint was filed on 1-1-1991 - Notice was sent on correct residential address of accused by post - Presumption of service was available to complainant - Question regarding date on which deemed service could be said to have been effected - Provision to receive interpretation which would advance purpose of statute - Interpretation that presumption of due service will arise only when sender got back, returned notice would be just, reasonable, equitable & practically prudent. (Paras 23 to 29)

       (iii) Negotiable Instruments Act. 1881 - Section 138 - Criminal Procedure Code. 1973 - Section 357(3) - Dishonour of cheque for Rs. 6.00.000/- - Conviction – Sentence - Cheque was of June. 1990 - Deterrent substantive sentence of imprisonment need not be imposed - Sentence of imprisonment till rising of court & fine of Rs. 6.75.000/- with default sentence imposed Fine if recovered to be paid to complainant. (Paras 40 to 41)

       Result: Appeal allowed.

       

JUDGMENT

R. Basant. J.- These appeals are taken up for disposal together as agreed by the rival contestants as the appellant and respondent in these appeals are common and the challenge raised is against a common judgment. The complainant is the appellant. He had alleged that the accused had committed the offence punishable under S. 138 of the Negotiable Instruments Act in respect of three cheques for a total amount of Rs. 6.00.000. By the impugned judgment the accused was found not guilty and acquitted.

2. The complainant alleged that the accused had issued three cheques for a total amount of Rs. 6.00.000 to him for the due discharge of a legally enforceable debt/liability. The complainant had advanced the said amount and for return of the same three post dated cheques dt. 1.6.1990, 15.6.1990 and 1-7-1990 were issued to the accused by the complainant. The said cheques when presented for encashment were dishonoured by the bank on the ground of insufficiency of funds. The information of dishonour was received by the complainant on the respective dates of dishonour. The complainant allegedly informed the accused of the fact of dishonour. Both of them are Professors in college. The complainant caused registered notices of demand as insisted by law to be issued to the accused. The notices addressed to the residential address of the accused were not received and were returned to the accused. Even before the complainant actually received those notices back, by way of abundant caution the complainant caused further notices to be issued to the accused at his official address.

These were also evaded. All such attempts to effect service did not fructify. No payment was made by the accused. It is in these circumstances that the complainant came to court with three separate complaints.

3. Cognizance was taken by the learned Magistrate. The accused denied the offence alleged against him. Thereupon the complainant examined Pws. 1 to 4, PW. 1 is the complainant. PW. 2 is the manager of the drawee bank. PW. 3 is the Principal of the college and he is examined obviously for the purpose of showing that the accused who was present in college had not accepted the notices addressed to him at the college address. PW 4 is the postman and. he was examined for proving that the notices addressed to the accused at his correct address could not be served as the accused attempted to evade the same. Exts. P 1 to P 24 were marked.

4. The accused denied all circumstances which appeared in evidence and which were put to him. He conceded that the cheques in question were drawn on cheque leaves issued to him by his bank to operate his account. He further conceded that all the three cheques do bear his signature. But according to him these cheques were not issued by him to the complainant. They were not issued for the discharge of any legally enforceable debt/liability. He took up the contention that he had kept blank signed cheque leaves at his place of work and such blank signed cheque leaves were found missing when he returned to work after a short gap of time due to illness. The obvious suggestion was that the complainant must have stealthily come into possession of the blank signed cheque leaves and was misutilising the same with mala-fide motives. He contended that the complainant, though a college teacher, was indulging in business activities in timber to the detriment of his academic responsibilities. The accused had raised objections against the same and it was in these circumstances that the complainant was vexatiously prosecuting the accused.

5. The accused examined DWs. 1 to 7 and proved Exts D1 to D 12. DWs. 1 to 6 are examined and Exts. D 1 to D 12 were marked with the intention of showing that the complainant had some business transactions in timber. DW.7 a watchman of the accused was examined to disprove the contention that the accused was evading the notice addressed to his residential address.

6. The learned Magistrate on an anxious consideration of t



































































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