IN THE HIGH COURT OF JUDICATURE AT MADRAS
RMT. TEEKAA RAMAN, J.
M. Thiyagarajan – Appellant
Versus
G. Pasupathy – Respondent
Crl. R.C. No. 145 of 2019
Decided On : 25-04-2023
Negotiable Instruments Act - Sale Agreement - Section 138 of NI Act - 138 - Summary: The court discussed the sale agreement, issuance of a cheque, stop payment, and burden of proof under Section 138 of the Negotiable Instruments Act. The respondent successfully rebutted the presumption under Section 139 of the NI Act, and the complainant failed to prove passing off consideration for the cheque. The court found the issuance of the cheque to be improbable and dismissed the revision petition.
Fact of the Case:
The petitioner filed a private complaint against the respondent for an offence under Section 138 of the Negotiable Instruments Act. The respondent had received an advance amount for the sale of property but failed to execute the sale deed. The petitioner presented a cheque issued by the respondent, which was returned unpaid. The trial court acquitted the respondent, and the judgment was confirmed in the appeal.
Finding of the Court:
The court found that the respondent successfully rebutted the presumption under Section 139 of the NI Act, and the petitioner failed to prove passing off consideration for the cheque. The court dismissed the revision petition.
Issues: The issues revolved around the validity of the cheque issued by the respondent, the burden of proof under Section 138 of the NI Act, and the credibility of the evidence presented by both parties.
Ratio Decidendi: The court held that the respondent successfully rebutted the presumption under Section 139 of the NI Act, and the petitioner failed to prove passing off consideration for the cheque. The court emphasized the importance of proving passing off consideration for a legally enforceable debt under Section 138 of the NI Act.
Final Decision: The court dismissed the Criminal Revision petition, upholding the judgment of acquittal passed by the trial court.
JUDGMENT
(Prayer: Criminal Revision Case filed under Sections 397 and 401 of Cr.P.C., to set aside the order passed by the learned Principal Sessions Judge, Chennai made in C.A.No.318 of 2017, dated 28.09.2018, confirming the judgment of acquittal passed by the learned Metropolitan Magistrate, Fast Track Court-III, Saidapet, Chennai in C.C.No.5804 of 2006, by judgment dated 05.09.2017.)
1. The complainant is the revision petitioner herein.
2. For the sake of convenience, the parties are referred to as per the ranking before the trial Court.
3. The brief facts of this case is as follows:-
(a) The petitioner herein had filed a private complaint as against the respondent for an offence under Section 138 of the Negotiable Instruments Act and the same had been taken on file by the learned XVII Metropolitan Magistrate in C.C.No.5804 of 2006 and later had been transferred to the learned Metropolitan Magistrate, Fast Track Court-III, Saidapet, Chennai.
(b) The petitioner and the respondent were good friends for quite a long time and the respondent had approached the petitioner and represented that he intend to sell his property situated at Thanjavur and the respondent had expressed his willingness to sell the said property to the petitioner, if the petitioner is interested to buy for which the petitioner had offered to purchase the same and the offer was accepted by the respondent and after negotiations, the respondent had agreed to sell the property for a sale consideration of Rs.10,00,000/- and the petitioner had paid an advance of Rs.9,00,000/- which was duly received by the respondent and the Sale Agreement Payment Receipt was executed by the respondent (Ex.P9).
(c) Later, the respondent having received the advance amount had not come forward to execute the sale deed and after much persuasion from the petitioner, the respondent assured to repay the advance amount by citing a reason that due to certain personal problems, he is not willing to sell the property and the petitioner had agreed, since the respondent was a good friend of the petitioner and the respondent had assured him that he shall repay the advance amount together with interest.
(d) The further case of the petitioner is that, the respondent has represented towards his liability to the petitioner for the return of the advance amount had issued a cheque (Ex.P1) dated 29.03.2006, bearing No.763825, drawn on City Union Bank Ltd, South Main Road, Tanjore Branch, for Rs.9,00,000/- (Rupees Nine Lakhs only), and when the petitioner as requested by the respondent, when presented the said cheque in his bank on 29.03.2006, i.e., Indian Bank, Kodambakkam Branch, Chennai, the same was returned unpaid for the reason "Account closed", and the same was intimated to the petitioner by his banker''s through their Return memo dated 13.04.2006 (Ex.P2) and Debit advice dated 19.04.2006 (Ex.P3)
(e)The petitioner had issued a legal notice on 09.05.2006 (Ex.P4) and the same was received by the respondent on 11.05.2006, and the acknowledgment card is Ex.P5. The respondent even after the expiry of fifteen days had not chosen to make the payment of the amount covered by the cheque and the respondent had chosen to issue a reply notice 24.05.2006 (Ex.P6) and the petitioner had duly send a rejoinder dated 07.06.2006 (Ex.P7) to the respondent and the Acknowledgment due card in respect of the rejoinder is Ex.P8. Thereafter the petitioner had filed the complaint on 14.06.2006.
4. The petitioner had examined himself as P.W.1 and marked Ex.P1 to Ex.P12, in support of his case and the respondent had examined himself as D.W.1 and further examined defense witnesses D.W.2 K.Baskaran and D.W.3 Manager, City Union Bank were examined and marked Exs.D1 to D11.
5. After conclusion of trial, the trial Court had found that, the respondent is not guilty of the offence under Section 138 of the Negotiable Instruments Act, and had acquitted the respondent by ju
The central legal point established in the judgment is the requirement to prove passing off consideration for a legally enforceable debt under Section 138 of the Negotiable Instruments Act.
Proper adherence to procedural requirements and principles of law in dismissing appeals and considering suspension of sentence under Section 138 of NI Act.
The burden of proof on the accused to disprove the existence of any legally recoverable debt or liability under the Negotiable Instruments Act.
Criminal Law - Dishonoured of Cheque - Appeal against conviction - Petitioner in this case, did not raise any probable defence which would create doubts in mind of Court. Court find no reason to inte....
The accused may rebut statutory presumptions of liability in cheque dishonor cases; once done, burden shifts back to the complainant to prove the case effectively.
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