IN THE HIGH COURT OF GAUHATI
Iqbal Ahmed Ansari, J.
Ambika Baishya - Appellants
Vs.
State of Assam and Anr. - Respondent
Decided On: 22.07.2008
Negotiable Instrument Act - Conviction under Section 138 - Summary of Acts and Sections: Section 138 of the Negotiable Instrument Act, 1881 - The court discussed the provisions of Section 139 of the NI Act, which presumes that the holder of the cheque received it for the discharge of a debt or liability. The court emphasized that this presumption is mandatory and shifts the burden to the accused to prove otherwise. The court also highlighted the distinction between presumption of fact and presumption of law, emphasizing that the burden on the accused to disprove a presumption of law is higher.
Fact of the Case:
The accused issued a cheque to the complainant, which was dishonored by the accused's bank. The accused claimed that the cheque was lost and that the complainant had fabricated the case. The trial court convicted the accused under Section 138 of the NI Act, and the appellate court upheld the conviction and modified the sentence.
Finding of the Court:
The court found the accused guilty under Section 138 of the NI Act based on the evidence presented, including the cheque and a forwarding letter from the accused. The court held that the accused failed to disprove the presumption under Section 139 of the NI Act and upheld the conviction.
Issues: The issues included the validity of the conviction and sentence under Section 138 of the NI Act, the burden of proof on the accused to disprove the presumption under Section 139, and the legality of the sentence and compensation imposed by the trial court.
Ratio Decidendi: The court held that the presumption under Section 139 of the NI Act is mandatory and shifts the burden to the accused to prove that the cheque was not issued for the discharge of a debt or liability. The court also emphasized the distinction between presumption of fact and presumption of law, highlighting the higher burden on the accused to disprove a presumption of law.
Final Decision: The court maintained the conviction and sentence of the accused under Section 138 of the NI Act but set aside the direction to pay compensation, remanding the matter to the trial court for a hearing on the question of compensation.
I.A. Ansari, J.
1. By judgment and order, dated 26.12.2006, passed, in complaint Case No. 3745C/2004, learned Sub-Divisional Judicial Magistrate No. 2, Guwahati, convicted the accused-petitioner under Section138 of the Negotiable Instrument Act, 1881 ('the NI Act') and sentenced him to undergo simple imprisonment for one year with further direction to pay to the complainant the cheque amount of Rs. 60,000 and another amount of Rs. 50,000, as compensation, under Section 357, Cr.PC and, in default of payment, so directed, suffer simple imprisonment for a further period of one year. Aggrieved by his conviction and the sentence, passed against him, as mentioned hereinbefore, the accused-petitioner preferred an appeal. By judgment and order, dated 16.11.2007, passed, in Criminal Appeal No. 05/2007, while the learned Additional Sessions Judge (FTC No. 4), Kamrup, Guwahati, has upheld the conviction of the accused-petitioner under Section 138, N.I. Act, it modified the sentence by directing the accused-petitioner to suffer simple imprisonment for a period of one year and to pay, in all, a sum of Rs. 90,000, as compensation, under Section 357 Cr.PC, and, in default, to undergo simple imprisonment for a period of three months. With such modification in the sentence, the appeal has been dismissed. Still dissatisfied, the accused-petitioner has presented, this revision.
2. I have heard Mr. P.K. Roychoudhury, Learned Counsel, appearing on behalf of the accused-petitioner, and Mr. K. Munir, learned Additional Public Prosecutor, Assam. None has appeared on behalf of the complainant-opposite party, though notice stands served on him.
3. Before entering into the question as to whether the order of conviction and sentence, passed, against the accused-petitioner, is sustainable in law or not, it is necessary to set out the respective cases of the parties concerned and the reasons, which led to the conviction of the accused-petitioner.
4. The case of the complainant, as unfolded at the trial, was thus: accused Ambika Baishya, in discharge of his liability towards the complainant, Nabajyoti Sharma, issued the cheque No. 494452, dated 4.9.2004, drawn, on the State Bank of India, Silpukhuri Branch, Guwahati, for a sum of Rs. 60,000, in favour of the complainant. The said cheque was deposited by the complainant in his account with his banker, namely, Canara Bank, Guwahati, for encashment, but, accused-person's banker, namely, State Bank of India, Silpukhuri Branch, Guwahati, returned, vide Memo, dated 19.9.2004, the cheque without payment on the ground that the payment had been stopped by the drawer. The complainant issued, on 13.9.2004, a notice, in writing, demanding payment of the cheque amount within fifteen days from the date of the receipt thereof by the accused. The accused did not pay the cheque amount within the period aforementioned, the complainant, then, presented the complaint, which gave rise to complaint Case No. 3745C/2004 aforementioned.
5. When the particulars of offence, under Section 138 of the NI Act, were read over and explained to the accused, he pleaded not guilty thereto. During trial, the complainant adduced evidence by examining four witnessed including himself. The accused was, then, examined under Section 313, Cr.PC, wherein he denied to have committed any offence at all/his defence being that the cheque, in question, had been lost and he accordingly informed his banker about the loss of the cheque, and stopped payment in respect thereof. This apart, according to the accused, the cheque was a 'self-cheque' and that having, somewhere, found the said cheque, the complainant struck off the word 'self', appearing on the cheque, and wrote his own name, as the payee, on the cheque. Thus, according to the defence, the whole case of the complainant was false and based, on fabrication of documents. In support of his case, the accused examined himself as a witness and further adduced evidence by examining one more witness.
6. Ha
State of Madras v. A. Vaidyanatha Iyer AIR 1958 SC 61
Hiten P. Dalal v. Bratindranath Banerjee (2001) 6 SCC 16
K. Bhaskaran v. Sankaran Vaidhyan Balan (1999) 7 SCC 510
Pankajbhai Nagjibhai Patel v. State of Gujarat AIR 2001 SC 567
Hari Singh v. Sukhbir Singh 1988 (4) SCC 551
Dilip S. Dahanukar v. Kotak Mahindra Co. Ltd. (2007) 6 SCC 528
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