The statutory presumption of a legally enforceable debt under Sections 118 and 139 of the Negotiable Instruments Act applies once the foundational fact of borrowing is established, shifting the burden to the accused to rebut this presumption.

ORDER :

This Criminal Revision Petition has been filed to call for the records pursuant to judgment made in Crl.A.No.216 of 2024 and to set aside the judgement dated 28.01.2025 passed in Crl.A.No.216 of 2024 on the file of the XXI Additional Sessions Judge, XXI Additional City Civil Court, Allikulam, Chennai, confirming the judgment dated 19.02.2024 passed in STC.No.10211 of 2022 on the file of the XXV Metropolitan Magistrate, Egmore, Chennai.

2. Heard the learned counsel appearing for the petitioner and perused the materials available on record.

3. The respondent/complainant filed a complaint as against the petitioner/accused for the alleged offence under Section 138 of the Negotiable Instruments Act in STC.No.10211 of 2022 on the file of the XXV Metropolitan Magistrate, Egmore, Chennai. After completion of enquiry, the learned Magistrate found the petitioner/accused guilty of the offence under Section 138 of the Negotiable Instruments Act and sentenced him to undergo simple imprisonment for one year and to pay cheque amount of Rs.38,47,179/- as compensation under Section 357(3) Cr.P.C., to the respondent/complainant, in default, to undergo simple imprisonment for one month. Challenging the same, the petitioner herein/accused has filed appeal in Crl.A.No.216 of 2024 on the file of the XXI Additional City Civil Court, Allikulam. The learned Appellate Judge, after hearing the arguments, dismissed the appeal and confirmed the conviction and sentence passed by the learned Magistrate. Aggrieved by the same, the petitioner/accused has filed this criminal revision petition.

4. The petitioner/accused was running a Gym by name “Fitness Zone”, in which, the respondent is a regular customer. The petitioner used to borrow money as hand loan from the respondent. Likewise, the petitioner borrowed a sum of Rs.38,47,179/- from the respondent during the period from 25.12.2013 to 22.01.2018. The petitioner agreed to repay the amount with interest at the rate of 12% per annum. When the respondent made a demand, the petitioner evading to repay the said borrowed amount. In order to discharge the amount, the petitioner issued a cheque bearing No.101657 dated 20.09.2019 for a sum of Rs.38,47,179/- drawn on IndusInd Bank, Nelson Manickam Road Branch, Chennai. The respondent presented the cheque with his banker, namely Indian Overseas Bank, MMDA Colony Branch, Chennai on 20.09.2019 and the same was dishonoured and returned with an endorsement “insufficient funds”. Immediately, the respondent sent a statutory notice to the petitioner herein on 09.12.2019 and the same was received by the petitioner on 10.12.2019. The petitioner sent a reply notice on 11.12.2019. Since the petitioner did not make payment within the stipulated time as mentioned in the statutory notice, the respondent was constrained to file a private complaint before the jurisdictional Magistrate. Accordingly he filed the complaint.

5. The defence taken by the petitioner as per his reply statement is that he borrowed Rs.8,00,000/- on various dates. Further, he issued a blank cheque only for security purpose. He repaid the entire amount. Hence, there is no legally enforceable debt or liability. Even after payment of the said amount, the respondent did not return back the discharged cheque. Further, during the evidence, the petitioner has taken another defence that he borrowed only Rs.8,00,000/- on various dates and repaid the said amount through his bank account, whereas, the respondent filed a false complaint as against the petitioner. Further, he has also stated that he has not made any endorsement on the reverse side of the cheque towards part payment. Hence, the complaint is hit by Section 56 of the Negotiable Instruments Act.

6. Learned counsel for the revision petitioner further submitted that though the respondent/complainant is the regular customer to his Gym, he borrowed small amounts on various occasions and the same were repaid by him. At the time of borrowal of small amounts, he iss