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IN THE HIGH COURT AT CALCUTTA
CHAITALI CHATTERJEE DAS
Ram Narayan Guchait – Appellant
Versus
State Of West Bengal – Respondent
Judgement :
CHAITALI CHATTERJEE DAS, J.
1. This is an application under Section 401 read with Section 397 and Section 482 of the Code of Criminal Procedure,1973 filed by the petitioner against an judgement and order dated September 4, 2008 passed by the Learned Additional Sessions Judge, 4th Court, Purba Medinipur in connection with criminal appeal no 23 of 2008, dismissing the appeal filed by the petitioner upholding the judgement and order passed by the Learned Judicial Magistrate, 3rd Court, Purba Medinipur in C.R. case no 230 of 2006 passed on April 7, 2008 ,convicting the petitioner under Section 138 of Negotiable Instrument Act 1881 and sentencing the petitioner to suffer simple imprisonment for 2 years and to pay a fine of Rs. 10 thousand in default to go further simple imprisonment for 6 months.
2. The case of the petitioner emanated from the complaint lodged by the Opposite Party no. 2 under Section 138 of the Negotiable Instrument Act 1881, on May 8, 2006 alleging inter alia that the petitioner used to do business on credit from Opposite Party no 2 and in order to discharge his liability had issued a cheque amounting Rs. 18, 35,000 to the Opposite Party no. 2 and the same
The issuance of a cheque establishes liability under Section 138 of the Negotiable Instrument Act, requiring the accused to rebut the presumption of its validity, which he failed to do.
The case established the importance of specific allegations and the requirement to arraign the company as an accused in matters of vicarious liability under Section 138 of the Negotiable Instruments ....
Dishonour of cheque – Company/Firm is a necessary party where offence has been committed on behalf of Company/Firm.
A drawer of a cheque may incur liability under Section 138 of the Negotiable Instruments Act unless they can sufficiently rebut the statutory presumptions of consideration and debt.
The court determined that under Sections 138 and 139 of the Negotiable Instruments Act, the presumption that a cheque was issued to discharge a debt is rebuttable, placing the burden on the accused t....
A corporate entity and its directors are vicariously liable for dishonored cheques under the Negotiable Instruments Act, with the presumption of liability shifting to the accused to prove otherwise.
The court upheld the conviction under Section 138 of the Negotiable Instruments Act, emphasizing the presumption of liability and the validity of the complaint filed by an authorized agent.
A person who is not a signatory to the cheque cannot be prosecuted under Section 138 of the Negotiable Instruments Act, 1881, for the offence of dishonour of cheque for insufficiency of funds.
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