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JUDGMENT :
Rajesh Sekhri, J.
1. This appeal has been directed against judgment dated 11.08.2014, passed by learned Special Railway Magistrate, Sub-Judge, Jammu [“the trial court”] in a complaint titled “Jagdish Raj Gupta vs. Parshotam Gupta”, vide which the complaint preferred by the appellant came to be dismissed and respondent came to be acquitted of the charge under Section 138 of the Negotiable Instruments Act, 1881 (“NI Act” for short).
2. Before a closer look at the grounds urged in the memo of appeal, it shall be apt to have an overview of the backgrounds facts.
FACTUAL BACKGROUND
3. The gravamen of charge against the respondent is that he borrowed an amount of Rs. 20.00 lacs from the appellant and in lieu, issued a cheque bearing no. 2225230 dated 03.05.2007, drawn on the Citizens Co-operative Bank Ltd., Vinayak Bazar, Jammu. The appellant presented the cheque to his banker, JCC Bank, Jammu for collection, which on presentation came to be dishonoured, with the endorsement, “Funds Insufficient”. Case of the appellant is that since respondent did not refund the loan amount despite due service of demand notice, dated 26.10.2007, upon him within the stipulated period of 30 days, he
The statutory presumptions under Sections 118 and 139 NI Act can be rebutted by the accused through evidence demonstrating non-existence of legal debt or liability, relying on preponderance of probab....
The presumption under Section 139 of the NI Act that a cheque is issued for discharge of a debt or liability unless proven otherwise, and the accused's burden to raise a probable defense to rebut the....
The presumption of liability under the NI Act is rebuttable, and the burden of proof lies on the complainant to establish the existence of a legally enforceable debt.
Dishonour of cheque – Whereas prosecution must prove guilt of an accused beyond all reasonable doubt, standard of proof so as to prove a defence on part of accused is preponderance of probabilities.
A presumption of debt exists under Sections 138 and 139 of the Negotiable Instruments Act, which the accused failed to rebut, affirming liability for dishonored cheques.
The presumption under Section 139 of the Negotiable Instruments Act is rebuttable, and the burden of proof lies on the accused to provide a probable defense.
Dishonour of cheque – As soon as complainant discharges burden to prove that instrument was issued by accused for discharge of debt, presumptive device under Section 139 of Act helps shifting burden ....
The presumption in favor of the complainant under the N.I. Act is rebuttable, and the standard of proof required to prove a defense in a criminal case is preponderance of probabilities.
The court upheld the acquittal as the complainant failed to prove the loan's existence or that the cheque was issued for legitimate debt, emphasizing the rebuttable nature of presumptions under the N....
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