IN THE HIGH COURT OF KERALA AT ERNAKULAM
P.V. Kunhikrishnan, J
Sajimon.K.A., - Petitioner
Versus
Kuruvilla Mani, S/o. Mani, Proprietor and Ors. – Respondents
Crl.Rev.Pet No. 793 of 2021
Decided On : 08-07-2025
(A) Negotiable Instruments Act, 1881 - Section 138 - Dishonour of cheque - The accused issued a cheque for Rs.12 lakhs which was dishonoured due to insufficient funds, leading to a conviction under Section 138 - The trial court's finding of guilt was confirmed by the appellate court. (Paras 2 , 3 , 9 )
(B) Presumption under Section 139 - The execution of the cheque was proved, and the accused failed to rebut the presumption of liability under Section 139 - The court stated that the jurisdiction in revisional matters is limited and does not extend to re-evaluating evidence unless there is a clear illegality. (Paras 7 , 8 , 10 )
Facts of the case:
The complainant alleged that the accused issued a cheque in discharge of a debt which was dishonoured for insufficient funds, leading to legal action.
Findings of Court:
The court upheld the conviction and sentence imposed by the trial court and the appellate court, confirming the evidence of cheque execution.
Issues: The main issues included the execution of the cheque and whether the presumption under Section 139 could be rebutted.
Ratio Decidendi: The court ruled that the execution was sufficiently proven, and the accused did not provide evidence to counter the presumption of liability.
Result: Criminal Revision Petition dismissed, confirming the conviction and sentence.
ORDER :
P.V. Kunhikrishnan, J
The revision petitioner is the accused in S.T. No.1488/2015 on the file of the Judicial First Class Magistrate Court-III, Kottayam. It is a prosecution initiated against the petitioner alleging offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (for short 'NI Act'). The revision petitioner is the accused and the 1st respondent herein is the complainant in the above case. (hereinafter parties are mentioned in accordance with their status before the trial court).
2. The case of the complainant is as follows:
The accused had money transaction with the complainant. The accused, in discharge of his legally enforceable debt towards the complainant, issued a cheque dated 16.66.2015 of HDFC Bank, ATPAR Branch, Kottayam for Rs.12 lakhs. The complainant presented the cheque through its bankers SBT, Manarcadu. The cheque was dishonoured for the reason "Funds Insufficient." On 05.09.2015, the Bank intimated the complainant on dishonouring of the cheque. On 15.09.2015, the complainant issued a registered Lawyer's Notice to the accused. On 01.10.2015, the accused received the notice. The accused, however, did not pay the cheque amount and therefore, committed an offence under section 138 of the Negotiable Instruments Act.
3. To substantiate the case, PW1 to PW4 were examined. Exts.P1 to P9 were marked on the side of the complainant. After going through the evidence and documents, the trial court found that the accused is guilty of the offence under Section 138 of the NI Act and he was directed to undergo simple imprisonment till the rising of the court and to pay a fine of Rs.12,50,000/- (Rupees Twelve lakh fifty thousand only). In default of payment of fine, the accused was directed to undergo simple imprisonment for five months. If the fine amount is realized, there was a direction to the accused to pay the same to the complainant as compensation. Aggrieved by the conviction and sentence, the accused filed an appeal before the Additional Sessions Court-V, Kottayam. The Additional Sessions Judge, after going through the evidence and documents confirmed the conviction and sentence. Aggrieved by the same, this Criminal Revision Petition is filed.
4. Heard the learned counsel appearing for the petitioner/accused, the learned counsel appearing for the 1st respondent/complainant and the learned Public Prosecutor.
5. Counsel for the petitioner/accused filed an argument note. The counsel submitted that the execution of the cheque is not proved in this case. It is also the case of the accused that, even if this Court found that the execution of the cheque is proved, the accused has rebutted the presumption under Section 138 of the NI Act by cross- examining the complainant. Several contentions were raised by the counsel for the petitioner/accused to support the above two grounds.
6. Counsel appearing for the 1st respondent/complainant supported the impugned judgments and submitted that there is nothing to interfere with the impugned judgments.
7. This Court considered the contentions of the accused, the complainant and the Public Prosecutor. The first point raised by the accused is that the execution of the cheque is not proved. According to the accused, PW2 is the witness relied on by the complainant to prove the execution of the cheque. It is submitted that, he is not a reliable witness. It is also submitted that PW2 is an interested witness and he is a friend of PW1. As far as the execution of a cheque is concerned, only the friends or relatives of PW1 will be available at that time. This Court cannot say that independent witness should be present at the time of execution of the cheque. The trial court and the appellate court concurrently found that the execution of the cheque is proved in the light of the evidence of PW1 and PW2. The jurisdiction of the revisional court is very limited. This Court need not re-appreciate the evidence unless there is illegality, irregularity and impropriety. Several
The execution of a cheque is proved, and the presumption of liability under Section 139 of the NI Act stands unless rebutted by the accused, which did not occur in this case.
The presumption under Section 139 of the N.I. Act regarding the issuance of a cheque remains unless rebutted by the accused, and failure to provide any evidence leads to conviction.
The statutory presumptions under Sections 138, 118, and 139 of the Negotiable Instruments Act are critical in dishonour cases, determining the burden of proof.
The court upheld the conviction under Section 138 of the Negotiable Instruments Act, affirming the presumption of a legally enforceable debt and allowing time for payment.
Admission of cheque issuance raises presumption of liability under NI Act Ss.118/139; rebuttal requires evidence beyond CrPC 313 denial. Revisional jurisdiction limited to patent errors, not evidence....
The main legal point established is the significance of the presumption under Sec. 139 of the N.I. Act and the accused's burden to raise a probable defence to rebut the presumption.
A cheque issued for a financial obligation creates a rebuttable presumption of debt under Sections 138 and 139 of the N.I. Act, which the accused failed to contradict.
The presumption of cheque issuance under Section 139 of the Negotiable Instruments Act shifts the evidential burden to the accused, who must rebut it to avoid conviction.
The court held that under Section 139 of the Negotiable Instruments Act, the accused bears the burden to rebut the presumption that a cheque was issued for a valid debt, which he failed to do.
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