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BEFORE THE MADURAI BENCH OF MADRAS HIGH COURT
K.MURALI SHANKAR
A. Arun – Appellant
Versus
New Everest Traders, Rep. By its Proprietor, M. Kathiresan – Respondent
| Table of Content |
|---|
| 1. overview of the facts of the case. (Para 1 , 2 , 4 , 5 , 6) |
| 2. discussion of the statutory presumption under ni act. (Para 8 , 12 , 18) |
| 3. defendant's claims regarding the cheque and its implications. (Para 10 , 23) |
| 4. establishing presumption and burden of proof. (Para 36) |
| 5. final ruling and penalties imposed. (Para 38 , 39 , 40) |
JUDGMENT :
This Criminal Appeal is directed against the judgment made in S.T.C.No.48 of 2022, dated 07.10.2022 on the file of the Fast Track Court (Magisterial Level), Uthamapalayam, in acquitting the respondent/accused for the offence under Section 138 of Negotiable Instruments Act .
3. For the sake of convenience and brevity, the parties hereinafter will be referred as per their ranking/status before the trial Court.
a) The second accused is the owner of the first accused concern. The second accused had good acquaintance with the complainant for several years. He approached the complainant and requested for a hand loan of Rs.6 lakhs for development of his business and for urgent family expenses, agreeing to repay the same within a period of three months.
5. The learned Judicial Magistrate, upon receiving the complaint, recorded the sworn stat
The statutory presumption under Sections 138 and 139 of the Negotiable Instruments Act establishes that the accused must rebut the existence of a debt with credible evidence; mere denial is insuffici....
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.
A drawer of a cheque is presumed liable unless they provide evidence to rebut the presumption of issuance for debt repayment, established under Sections 138 and 139 of the Negotiable Instruments Act.
Presumption under Section 139 of the Negotiable Instruments Act requires the accused to present credible evidence to rebut the holder's claim of legal liability regarding the cheque issued.
The court determined that under Sections 138 and 139 of the Negotiable Instruments Act, the presumption that a cheque was issued to discharge a debt is rebuttable, placing the burden on the accused t....
The burden is on the complainant to prove financial capacity when questioned; a mere presumption does not suffice if evidence is lacking.
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