IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/CRIMINAL MISC.APPLICATION (FOR LEAVE TO APPEAL)
NO. 6345 of 2025 In F/CRIMINAL APPEAL NO. 11692 of 2025 =============================================
GUJARAT LAGHU UDYOG SAHKARI SOCIETY LTD. THRO KRISHNAKANT SAHU Versus STATE OF GUJARAT & ORS.
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Appearance:
MR VINOD B GUPTA(1904) for the Applicant(s) No. 1 MR YASH V GUPTA(11814) for the Applicant(s) No. 1 MR ROHAN RAVAL, APP for the Respondent(s) No. 1 =============================================
CORAM: HONOURABLE MS. JUSTICE S.V. PINTO Date : 28/03/2025
ORDER :
1. Heard learned advocate Mr.Yash Gupta for the applicant and learned APP Mr.Rohan Raval for the respondent – State.
2. By way of the present application, the applicant has prayed to grant leave to appeal against the judgment and order dated 22.01.2025 passed by the learned Chief Judicial Magistrate, Ahmedabad City (hereinafter referred to as “the learned Trial Court”) in Criminal Case No. 13973 of 2019.
3. Learned advocate Mr.Yash Gupta for the applicant submits that the applicant and the respondent Nos. 2 and 3 had business relations and the accused Nos.2 and 3 had purchased Pig Iron from the applicant and accordingly, they had some transactions between them, towards which, cheque No.000200 dated 14.11.2018 for an amount of Rs.4,00,000/- of The Ahmedabad Mercantile Co-op. Bank Ltd., New Cloth Market Branch was issued. The cheque was deposited by the applicant in his account with A.D.C. Bank, Dariyapur Branch and the said cheque returned unpaid with the endorsement “Funds Insufficient”. The demand statutory notice was given which was duly served to the respondent Nos.2 and 3 and no reply was given and the amount was not paid and hence, the applicant had filed the complaint under Section 138 of the N.I.Act before the Court learned Chief Metropolitan Magistrate, Ahmedabad. After the respondent Nos.2 and 3 were served with the summons and they appeared and entire evidence of the applicant was taken on record. The applicant produced bills for the transactions and proved the legally enforceable debt and it is the say of the learned advocate for the applicant that the amount was given towards the outstanding amount of Rs.3,94,268/- and some advance amount as there were also talks between the parties that respondent Nos.2 and 3 would purchase more Pig Iorn from the applicant. By the impugned judgment and order dated 22.01.2025, the learned Trial Court has acquitted the respondent Nos.2 and 3 from the offence under Section 138 of the N.I.Act without considering the facts of the cases of the applicant. Learned advocate for the applicant submits that the learned Trial Court has not appreciated the documentary evidence in proper perspective and has passed the impugned judgment and order. The applicant has a good case on merits, and therefore, the present leave to appeal may be allowed.
4. Learned APP Mr. Rohan Raval for the respondent – State submits that the learned Trial Court has appreciated all the documents in proper perspective and therefore, no interference of this Court is required in the impugned judgment and order of acquittal passed by the learned Trial Court and the present application may be rejected.
5. Having heard advocates for the respective parties and considering the submission made by both the parties as also the documentary evidence produced by the applicant, prima-facie, it appears that the learned Trial Court has not appreciated the oral and documentary evidence in proper perspective, and hence, the present application requires consideration and accordingly, is allowed.
The failure of the Trial Court to appreciate evidence properly necessitates reconsideration of an acquittal under Section 138 of the Negotiable Instruments Act.
The court emphasized the necessity for proper appreciation of evidence and documents in cases involving cheque dishonor under Section 138 of the NI Act.
The trial court's failure to properly appreciate evidence warrants reconsideration of the acquittal under Section 138 of the NI Act.
The court emphasized the necessity for proper appreciation of evidence in business transactions under the Negotiable Instrument Act, leading to the granting of leave to appeal against acquittal.
The court emphasized the necessity for the Trial Court to properly appreciate all evidence and documents, leading to the granting of leave to appeal against acquittal under Section 378(4) of the Code....
The court emphasized the necessity for proper evaluation of evidence in cases involving acquittal under the Negotiable Instrument Act.
The presumption under Section 139 of the Negotiable Instruments Act must be drawn in favor of the holder unless rebutted, and misinterpretation of evidence by the Trial Court can lead to a successful....
The trial court's failure to properly appreciate evidence can lead to a successful challenge against an acquittal under Section 138 of the Negotiable Instruments Act.
The interpretation of Section 56 of the Negotiable Instrument Act must be correctly applied to determine the enforceability of a cheque, especially in light of prior payments.
The statutory presumption under Section 139 of the Negotiable Instruments Act must be applied in favor of the holder in due course unless effectively rebutted by the accused.
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