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SOPHY THOMAS
E. K. Kesavan S/o. Kunhiraman – Appellant
Versus
Thomas S/o. Joseph – Respondent
JUDGMENT :
(Sophy Thomas, J.)
This appeal is at the instance of the complainant in CC No.595 of 2001 on the file of Judicial First Class Magistrate Court-II, Sulthan Bathery, challenging acquittal of the accused under Section 138 of the Negotiable Instruments Act (hereinafter referred as ‘the NI Act’), vide judgment dated 03.05.2002.
2. The case of the complainant is that the accused purchased ginger from him for a sum of Rs.94,500/- during 1996. He failed to pay that amount, in spite of repeated demands. Finally, he issued Ext.P1 cheque for that amount, assuring that it would be honoured on presentation before the bank. But the cheque was returned dishonoured for the reason ‘funds insufficient’. Complainant sent registered lawyer notice to the accused intimating dishonour of the cheque, and demanding the cheque amount. In spite of receipt of notice, the amount has not been repaid, and hence the complaint.
3. On taking cognizance, and on appearance of the accused before the trial court, particulars of offence was read over and explained, to which he pleaded not guilty and claimed to be tried. PW1 was examined and Exts.P1 to P6 were marked from the side of complainant to prove his ca
Issuance of a cheque acknowledges a legally enforceable liability, making the drawer liable under Section 138 of the NI Act, even if the debt is time-barred.
The court upheld that a dishonored cheque creates a presumption of liability unless adequately rebutted, reinforcing the legal principles under Sections 118 and 139 of the Negotiable Instruments Act.
:DISHONOUR OF CHEQUE – ACQUITTAL UNDER - under Section 139 of the N.I. Act, there is a presumption that the holder of the cheque received it for the discharge of debt or liability, but the existence ....
A cheque issued acknowledges a legally enforceable liability, regardless of limitation periods.
Dishonor of a cheque for 'payment stopped by the drawer' constitutes an offense under Section 138 of the NI Act, reinforcing the presumption of liability.
Dishonour of cheque – When a cheque is issued towards a time-barred debt and is dishonoured, liability under Section 138 of N.I. Act squarely arises.
Issuing a cheque for a barred debt does not exempt the drawer from liability under Section 138 of the Negotiable Instruments Act.
The court clarified that for criminal liability under Section 138, a cheque must be presented to the drawee bank within six months from its date.
A cheque issued for a time-barred debt does not constitute a legally enforceable debt under Section 138 of the Negotiable Instruments Act, leading to no offence being committed.
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