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2026 Supreme(HP) 434

IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
RAKESH KAINTHLA, J.
Santokh Singh - Petitioner
Versus
Baldeep Singh - Respondent
Cr. Revision No.34 of 2026 
Decided On : 25-02-2026
 

Advocates Appeared:
For the Petitioner:Mr. Suneet Goel, Senior Adv. with Mr. Vivek Negi, Advocate.

Revisional jurisdiction limited; no reappreciation of evidence absent perversity. NI Act presumptions u/ss 118,139 arise on cheque admission; accused must rebut with evidence. No initial complainant burden for debt, capacity or corroboration. Signed blank cheque attracts presumption.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Cr.P.C. - Sections 397, 401, 313, 357(3) - Cheque dishonour - Ingredients: drawing cheque for discharge of debt, presentation, dishonour for insufficient funds, demand notice within 15 days, failure to pay within 15 days of notice - Accused admitted issuance and signature - Presumption u/s 118(a) that for consideration and u/s 139 of legally enforceable debt/liability arises - Rebuttable by accused leading evidence, mere denial u/s 313 insufficient - No need for complainant to aver subsisting liability in complaint or prove initially - Even signed blank cheque or filled by another attracts presumption - Financial capacity proved by unchallenged testimony, non-production of ITR/non-examination of witness does not rebut - Bank memo presumed correct u/s 146 - Revisional jurisdiction supervisory, not appellate; no interference absent perversity, jurisdictional error or patent defect - Conviction and sentence upheld. (Paras 11-47)

(B) Sentence - Simple imprisonment 6 months and compensation up to twice cheque amount with 9% interest advisable - Default imprisonment for non-payment valid u/s 357(3) - Deterrent nature to promote cheque credibility. (Paras 39-45)

Facts of the case:
Complainant advanced Rs.2,70,000/- to accused for transport business. Accused issued post-dated cheque, dishonoured for insufficient funds. Demand notice served, no payment within 15 days. Trial court convicted u/s 138 NI Act, sentenced to 6 months SI and Rs.4,00,000/- compensation (default 1 month SI). Appeal dismissed by sessions court. Revision challenging existence of debt, discrepancies, financial capacity.

Findings of Court:
All ingredients satisfied, presumptions not rebutted, no perversity in lower courts' findings. Revision dismissed, conviction and sentence upheld.

Issues: Whether legally enforceable debt proved; effect of discrepancies in complaint/evidence, non-examination of witness, non-production of ITR, different handwriting on cheque; scope of revisional jurisdiction; adequacy of sentence/compensation.

Ratio Decidendi: On admission of cheque execution, presumptions u/ss 118,139 mandatory; accused bears onus to rebut probabilistically with evidence. Revisional court examines only legality/propriety, not reappreciates evidence sans glaring perversity. No initial burden on complainant for debt proof, capacity or corroboration.

Result: Revision petition dismissed.

Table of Content
1. factual background of cheque issuance and dishonour (Para 1 , 2)
2. trial proceedings and lower courts' convictions upheld (Para 4 , 5 , 6 , 7)
3. accused challenges proof of legally enforceable debt (Para 8 , 9)
4. revisional jurisdiction limited to patent errors (Para 10 , 11 , 12 , 13 , 14 , 15)
5. presumptions under sections 118 and 139 ni act (Para 16 , 17 , 18 , 19 , 20)
6. no need for specific liability details in complaint (Para 21 , 22 , 23 , 24 , 25)
7. presumption obviates corroboration; accused must rebut (Para 26 , 27 , 28 , 29 , 30 , 31)
8. itr non-production does not rebut presumption (Para 32 , 33 , 34)
9. dishonour and notice proved; s138 ingredients satisfied (Para 35 , 36 , 37 , 38)
10. deterrent sentence and compensation upheld appropriate (Para 39 , 40 , 41 , 42 , 43 , 45)
11. revision petition dismissed confirming conviction (Para 46 , 47)

JUDGMENT :

Rakesh Kainthla, J.

The present revision is directed against the judgment dated 27.11.2025 passed by learned Additional Sessions Judge, Nalagarh, District Solan, H.P. (learned Appellate Court) vide which judgment of conviction dated 14.12.2023 and order of sentence dated 19.12.2023 passed by learned Additional Chief Judicial Magistrate, Nalagarh, District Solan, H.P. (learned Trial Court) were upheld. (Parties shall hereinafter be referred to in the same manner as they were arrayed before the learned Trial Court for convenience.)

2. Briefly stated, the facts giving rise to the present revision are that the complainant filed a complaint before the learned Trial Court against the accused for the commission of an offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (in short, 'NI Act'). It was asserted that the parties had good relations. The accused needed money to run his transport business. He sought financial help from the complainant. The complainant advanced Rs.2,70,000/- to the accused. The accused issued a post-dated cheque for Rs.2,70,000/- drawn on Punjab National Bank, Nalagarh, to discharge his debt. The complainant deposited the cheque at his bank, and it was dishonoured with an endorsement “insufficient funds'. The complainant issued a demand notice to the accused asking him to pay the amount of Rs.2,70,000/-within 15 days. Notice was served upon the accused on 3.7.2019, but he failed to pay the money. Hence, a complaint was filed before the learned Trial Court against the accused for taking action as per law.

3. Learned Trial Court found sufficient reasons to summon the accused. When the accused appeared, a notice of accusation was put to him for the commission of an offence punishable under of the NI Act, to which he pleaded not guilty and claimed to be tried.

4. The complainant examined himself (CW1) to prove his complaint.

5. The accused, in his statement recorded under Section 313 Cr. P.C., did not dispute his signature on the cheque and the service of notice upon him. He did not produce any evidence in defence.

6. Learned Trial Court held that the issuance of the cheque was not disputed, and a presumption arose that the cheque was issued for consideration to discharge the debt/liability. The accused failed to produce any evidence to rebut the presumption. It was suggested by the accused to the complainant that the accused had paid Rs.20,000/- to the complainant against liability, which corroborated the complainant's version that the accused had a subsisting liability towards the complainant. The cheque was dishonoured with an endorsement “insufficient funds”, and the notice was duly served upon the accused. All the ingredients of the commission of an offence punishable under Section 138 of the NI Act were duly satisfied. Hence, the learned Trial Court convicted the accused of the commission of an offence punishable under of the NI Act, and sentenced him to undergo simple imprisonment for six months, pay a compensation of Rs.4,00,000/- and, in default of payment of compensation, to undergo simple imprisonment for on

































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