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IN THE HIGH COURT OF GAUHATI, ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH
PARTHIVJYOTI SAIKIA
Rajib Steel Fabrication Bhadhara Krishi Pam Nigam – Appellant
Versus
Chandra Handique S/o Late Malbhog Handique – Respondent
JUDGMENT :
PARTHIVJYOTI SAIKIA, J.
1. Heard Mr. A.R. Shome, the learned counsel appearing for the petitioners. Also heard Mr. S. Nawaz, the learned counsel representing the sole respondent.
2. This is an application under Section 397 read with Section 401 of the CRIMINAL PROCEDURE CODE challenging the judgment and order dated 30.05.2022 passed by the learned Addl. Sessions Judge, Sivasagar in Criminal Appeal No.47(4)/2019 affirming the judgment dated 05.11.2019 passed by the learned Addl. Chief Judicial Magistrate, Sivasagar in C.R. (N.I.) Case No.27/2018.
3. In fact, the petitioners were convicted under Section 138 of the N.I. Act.
4. The petitioner No.2 Rajib Gogoi being the proprietor of M/S. Rajiv Steel Fabrication, borrowed a sum of Rs. 3,50,000/- from the respondent. On 27.02.2017, the money was paid accordingly.
5. Thereafter, on 15.02.2018, the present petitioner no.2 had issued a cheque bearing No.000759 for an amount of Rs. 3,50,000/- to the respondent. The cheque was presented to the Bank and on 17.03.2018, it was dishonoured on the ground “exceeds arrangement”. Therefore, the respondent issued a notice to the petitioner no.2 demanding the money. On 10.04.2018, a notice wa
A cheque issued as security still constitutes liability under the Negotiable Instruments Act, and failure to appear in court leads to an adverse inference against the accused.
A cheque issued as security falls under the ambit of Section 138 of the N.I. Act when backed by a legally enforceable debt, notwithstanding claims to the contrary.
The court upheld the conviction under Section 138 of the N.I. Act, emphasizing the petitioner's burden to rebut the presumption of liability, which he failed to do.
The court reaffirmed statutory presumptions under the NI Act regarding cheque liability, emphasizing the evidentiary burden on the accused.
The statutory presumptions under Sections 118 and 139 of the NI Act create a burden on the accused to disprove liability, which was not achieved.
The presumption of guilt under Section 139 of the Negotiable Instruments Act requires the accused to present credible evidence to rebut it; a failure to do so leads to affirmation of conviction.
Dishonour of cheque – When part payment has been made after debt was incurred and before cheque was encashed, entire cheque amount cannot be said to be legally enforceable debt.
The issuance of a cheque constitutes acknowledgment of liability; presumption of enforceability exists unless rebutted with credible evidence, reaffirming the validity of debts in commercial transact....
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