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2011 Supreme(Ker) 579

High Court of Kerala
K. HEMA
C. Santhi
Versus
Mary Sherly & Another
CRL.A.No. 996 of 2011
Decided on : 30-06-2011

Advocates Appeared:
For the Petitioner:M. Sreekumar, Advocate.
For the Respondent: P.A. Salim, Public Prosecutor.

Headnote:

Negotiable Instruments Act, 1881 - Section 138 - Dishonored of cheque - Contention that he received only a lesser amount from complainant and as security, he handed over cheque in blank form to complainant - The transaction took place on a different date and not any date alleged by complainant - The blank cheque was misused, to file a false complaint - mere allegation made by PW1 is to effect that cheque was given by accused - Learned Magistrate acquitted the accused - Order of Acquittal - Challenged - Whether accused has drawn cheque or not - Whether each of circumstances is proved by prosecution, as per law and whether those proved circumstances lead to an irresistible conclusion that cheque was drawn by accused, as alleged by prosecution - Held, There is no allegation or proof of the fact that cheque was "drawn" or "executed" by accused - Only fact alleged in complaint and stated in evidence by sole witness, PW1 is that accused "gave" cheque to complainant - From such evidence alone, it cannot be concluded that cheque was "drawn" by accused - Trial court rightly acquitted accused, in absence of proof of "drawing" of cheque, which is most essential ingredient of the offence under section138 of the Act - Learned Magistrate rightly held that "execution" is different from "issuance" of cheque "Issue" means, to "give something to somebody" issuance of cheque does not mean drawing of cheque - Impugned order or findings therein suffer from any perversity, illegality, error or infirmity which calls for interference - Appeal is dismissed.

JUDGMENT

1. On a complaint filed by appellant before Magistrate court, first respondent stood trial for offence under Section 138 of the Negotiable Instruments Act ('the Act' for short). To prove complainant's case, PW1 was examined and Exts.P1 to P6 were marked. The accused did not adduce any evidence, but took up a contention that he received only a lesser amount from complainant and as security, he handed over a cheque in blank form to complainant. The transaction took place on a different date and not any date alleged by complainant. The blank cheque was misused, to file a false complaint, it is further contended.

2. Learned Magistrate, after consideration of evidence and materials on record, acquitted the accused, mainly on the following observations and findings in paragraphs 11 and 12 of the impugned order:

"Accused is not admitting either the signature in Ext.P1 or the execution of Ext.P1. So, it is the duty of the complainant to prove the execution of Ext.P1. Only when the execution of Ext.P1 is proved, the offence u/s 138 of the Negotiable Instruments Act will be attracted.

12. The mere allegation made by PW1 is to the effect that Ext.P1 cheque was given by the accused. It will not prove the execution of the Ext.P1 because issuance and execution are different. The term 'issuance' is not equivalent to 'execution'. There is nothing in the testimony of PW1 to the effect that Ext.P1 cheque was executed by the accused. There is absolutely no other evidence to prove the execution of Ext.P1. So, the execution of Ext.P1 is not proved and the offence u/s 138 of the Negotiable Instruments Act is not admitted."

3. Challenging the order of acquittal, this appeal is filed. When the appeal came up for admission, I heard learned counsel for appellant and he strongly argued that accused admitted execution in the reply notice and hence, the order of acquittal passed on the premise that there is no proof for execution of cheque is illegal. He read out the reply notice in court but it is quite clear from the reply that accused denied execution and specifically contended that a signed blank cheque was handed over by him to appellant, in connection with another transaction.

4. On consideration of the various aspects and provisions of the Act, I am of view that the contention raised by an accused in a prosecution under Section 138 of the Act that he issued a blank signed cheque will not amount to admission of execution of cheque. A signed blank cheque leaf is very often referred to as a blank "cheque", but, strictly speaking, it is not a "cheque", as defined under the Act. It can be treated only as a "cheque leaf" containing admitted signature of accused. The admission of signature in a cheque leaf alone will not constitute admission of execution of the cheque. The argument that accused admitted "execution" of the cheque in the reply notice etc., cannot therefore, be accepted.

5. Learned counsel for appellant also argued that no where in the Negotiable Instruments Act, it is stated that execution is to be proved by complainant in a case involving offence under Section 138 of the Act. He also argued that what is meant by "execution" is not stated in the Act, but most of the courts insist that complainant must prove execution and accused are illegally acquitted, on the ground that "execution" is not proved. According to learned counsel for appellant, it is illegal to cast any burden on complainant to prove "execution", in a prosecution for offence under Section 138 of the Act, since the said provision does not even refer to the word, "execution".

6. True, the expression, "execution" is not used in Section 138 of the Act. A reading of Section 138 of the Act however, shows that to prove the offence under the said section, prosecution shall inevitably prove that the cheque was "drawn" by accused. The only overt act which makes a person liable for the offence under section 138 of the Act is "drawing" of cheque by him. So, the main factor t




















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