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2024 Supreme(Ker) 206

K. BABU
Rahiya, W/o Shri. Ismail – Appellant
Versus
Jasna, W/o Shri Najeeb – Respondent


Advocates:
Advocate Appeared:
For the Appellant : MATHAI EAPPEN VETTATH, T.G.RAJAN, P.K. RAGHAVANJIMMY G
For the Respondent: NAVEEN THOMAS, SRI.G.SUDHEER

Judgement Key Points

Key Points: - The complainant proved the execution of the cheque and that the cheque was drawn from the accused’s account; presumption of consideration applies under sections 118(a) and 139; burden shifts to the accused to rebut the presumption (!) - The court may consider whether the accused successfully rebutted the presumption by raising a probable defence; the standard is what a prudent person would consider reasonably probable, not necessarily conclusive (!) (!) - On appeal, the court may re-appreciate the evidence and may overturn an acquittal if two reasonable conclusions are possible; however, double presumption of innocence in favor of the accused applies, and interference requires solid reasoning; if two reasonable conclusions are possible, the appellate court should not disturb the acquittal (!) (!) (!) (!) - The trial court’s conclusion that the complainant failed to prove the existence of consideration cannot be set aside if the evidence supports that conclusion; suspicion surrounding the transaction can justify acquittal if not satisfactorily explained (!) (!) - The complainant’s evidence included the alleged loan arrangement, mortgage of property, and the cheque’s issuance; inconsistencies in documentary evidence (Ext.P6) and testimony can impact credibility and the application of presumptions (!) (!) (!) (!)

What is the standard for rebutting the presumption of consideration under the Negotiable Instruments Act in a cheque bounce case?

What is the appellate court’s approach to reviewing an acquittal in a cheque dishonour case and the sufficiency of evidence to prove execution and consideration?

What are the evidentiary burdens and framework for proving the issuance of a cheque and the dishonour when the complainant relies on statutory presumptions?


JUDGMENT :

The challenge in this appeal is to the judgment dated 23.3.2022 in C.C.No.393/2017 passed by the Judicial First Class Magistrate-I, Aluva. The appellant is the compl ainant. Respondent No.1 is the accused.

2. The parties will be referred to hereinafter according to their position in the trial Court. The complainant filed a complaint alleging offence punishable under Section 138 of the Negotiable Instruments Act. The accused executed a cheque for Rs.10,00,000/-(Rupees ten lakhs only) drawn on the Federal Bank Ltd., Panangad Branch, in favour of the complainant. The cheque was dishonoured due to insufficient funds. The complainant caused to issue a lawyer’s notice, which the accused received but failed to pay the amount covered by the cheque.

3. The complainant has examined herself as PW1. A witness was examined as PW2. The complainant proved Exts.P1 to P7. The Court below acquitted the accused at the close of the trial.

4. Heard the learned counsel appearing for the complainant and the learned counsel appearing for the accused.

5. The learned counsel for the complainant submitted that the judgment of acquittal passed by the Court below is illegal and unsustainable in law. The

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