IN THE HIGH COURT OF HIMACHAL PRADESH AT SHIMLA
VIRENDER SINGH, J.
Dinesh Negi - Petitioner
Versus
Sahil Sood - Respondent
Cr. Revision No. 54 of 2022
Decided On : 16-05-2025
(A) Negotiable Instruments Act - Section 138 - Criminal Revision Petition - Conviction and sentence upheld by Appellate Court - Petitioner convicted for issuing a dishonored cheque and sentenced to two months imprisonment and compensation of Rs. 5,50,000/- - Evidence misappreciated by lower courts - Entire compensation deposited by accused - Court modifies sentence to 'till the rising of the Court' based on justice considerations. (Paras 3, 23, 27)
(B) Presumption in favor of holder of cheque - Once the cheque is issued, the complainant is entitled to a presumption in his favor under Section 142 of the NI Act, which the accused failed to rebut. (Paras 19, 21)
Facts of the case:
The petitioner was convicted for issuing a cheque for Rs. 5,20,000/- which was dishonored. The complainant filed a complaint after the cheque was returned unpaid, and the petitioner was sentenced by the trial court. (Paras 3, 5.1)
Findings of Court:
The trial court's findings were upheld, but the sentence was modified due to the deposit of the entire compensation amount by the accused. (Paras 23, 27)
Issues: Whether the evidence was misread and if the sentence should be modified considering the deposit of compensation. (Paras 12, 23)
Ratio Decidendi: The court emphasized that the presumption in favor of the complainant under Section 142 of the NI Act was not rebutted by the accused, and the sentence was modified based on the principle of justice. (Paras 19, 23)
Result: The judgment of conviction is upheld, but the sentence is modified.
JUDGMENT :
Virender Singh, J.
Petitioner-Dinesh Negi has preferred the present Criminal Revision Petition, against the judgment, dated 29th December, 2021, passed by the Court of learned Sessions Judge, Solan, District Solan, H.P. (hereinafter referred to as ‘the Appellate Court’), passed in Criminal Appeal No. 29-S/10 of 2020, titled as Dinesh Negi versus Sahil Sood.
2. Vide judgment, dated 29th December, 2021, the learned Appellate Court has dismissed the appeal, filed by the petitioner against the judgment of conviction and order of sentence, dated 29th February, 2020, passed by the Court of learned Judicial Magistrate First Class, Court No. 1, Solan, District Solan, H.P. (hereinafter referred to as ‘the trial Court’) in Criminal Case No. 538-3 of 2012, titled as Sahil Sood versus Dinesh Negi.
3. By virtue of the said judgment of conviction and order of sentence, the learned trial Court has convicted the petitioner, for the offence, punishable under Section 138 of the Negotiable Instruments Act (hereinafter referred to as ‘NI Act’) and sentenced him to undergo simple imprisonment for two months and to pay a compensation of Rs. 5,50,000/-.
4. For the sake of convenience, the parties, to the lis, are, hereinafter, referred to, in the same manner, in which, they were referred to, by the learned trial Court.
5. Brief facts, leading to the filing of the present revision petition, before this Court, as borne out from the record, may be summed up, as under:
5.1. Complainant-Sahil Sood filed a complaint under Section 138 of the NI Act, against the accused, on the ground that the accused had issued cheque No. 897915, dated 18th September, 2012 (hereinafter referred to as‘cheque in question’), amounting toRs. 5,20,000/-, in favour of the complainant, as part payment of his liability, towards the complainant. The cheque, thereafter, was presented for encashment by the complainant to his banker, i.e. Syndicate Bank, Solan Branch. The banker of the complainant forwarded the cheque in question to the drawee bank, i.e. Punjab National Bank, Balag, through its Branch at The Mall, Solan Branch, but, the same was dishonoured and was returned alongwith the memo, dated 20th September, 2012, on account of insu Intimation of the same was received by the complainant, through his banker, alongwith the memo of the banker of the accused.
5.2. Thereafter, the requisite legal notice was issued, calling upon the accused, to make the payment of the amount of the cheque in question, with fifteen days, after the receipt of the said notice, but, despite the receipt of notice, neither the same was replied, nor the payment was made. Subsequently, the complaint was filed before the learned trial Court.
5.3. The learned trial Court found a prima facie case for commission of the offence, under Section 138 of the NI Act, as such, the otices were issued to the accused, vide order dated 21st November, 2012.
5.4. After securing the presence of the accused, the learned trial Court found a sufficient ground for proceeding against the accused, for the commission of the offence, punishable under Section 138 of the NI Act, Notice of Accusation, was put to him, vide order, dated 12th February, 2014. When the Notice of Accusation was put to the accused, he pleaded not guilty.
5.5. Thereafter, the complainant was directed to adduce evidence in order to substantiate the Notice of Accusation, put to the accused. Consequently, the complainant appeared in the witness box on 21st May, 2014, and closed his evidence. Thereafter, the statement of the accused was recorded, under Section 313 CrPC, on 29th May, 2014. The accused has not led any defence evidence. As such, his evidence was ordered to be closed, vide order, dated 9th July, 2014.
5.6. Subsequently, due to the non-appearance of the accused, he was declared Proclaimed Offender, vide order, dated 21st June, 2017.
5.7. Thereafter, the complainant had moved an application, under Section 311 CrPC, which was allowed by the learned trial Cou
AI
The court modified the sentence for the offence under Section 138 of the NI Act from imprisonment to 'till the rising of the Court' based on the deposit of compensation and principles of justice.
The presumption of a debt under Sec. 139 of the N.I. Act is a significant legal principle, which places the burden on the accused to prove the contrary when a cheque is dishonored.
The court confirmed that the burden of proof shifts to the accused to rebut the statutory presumptions once the complainant establishes a prima facie case under the N.I. Act.
Admission of cheque signature raises presumption under NI Act ss.118(a),139 of debt discharge; accused must rebut with evidence, not mere denial. Revisional jurisdiction bars reappreciation absent pe....
Revisional jurisdiction limited; no interference with concurrent conviction under NI Act S.138 absent perversity; presumption of debt under S.139 holds on signature admission unless rebutted by proba....
Revisional jurisdiction limited to patent errors, no reappreciation absent perversity; presumption of debt under NI Act holds post cheque admission unless robustly rebutted; security cheques attract ....
The presumption of liability under Section 139 of the Negotiable Instruments Act requires the accused to provide credible evidence to rebut the claim of dishonor of a cheque.
Signature admission on cheque triggers Sections 118(a),139 NI Act presumption of debt discharge; accused must rebut by evidence, mere denial insufficient; revisional jurisdiction limited, no interfer....
The presumption of liability under Section 139 of the N.I. Act requires the accused to rebut the presumption once the issuance of the cheque is established.
The compensatory nature of proceedings under Section 138 of NI Act and the court's authority to modify the sentence and compensation amount based on relevant legal provisions.
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