IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Jagmohan Bansal, J.
Deepak Sharma - Appellant
Versus
Satender Singh Rawat - Respondent
CRM-A-551-2022 (O&M)
Decided On : 15-11-2022
Delay Condonation - Criminal Law - Section 138 of Negotiable Instruments Act - [Section 138 of NI Act] - The court discussed the legal enforceability of debt or liability under Section 138 of the NI Act and emphasized that the cheque must be issued in discharge of a legally enforceable liability. The court also highlighted the appellate court's power to review, reappreciate, and reconsider the evidence upon which the order of acquittal is founded, with a double presumption of innocence in favor of the accused.
Fact of the Case:
The appellant sought special leave to appeal against the order of acquittal by the trial court in a case related to the dishonor of cheques issued under Section 138 of the Negotiable Instruments Act. The trial court acquitted the respondent based on the finding that the money advanced by the appellant for securing a government job was for illegal activities and did not constitute a legally enforceable debt.
Finding of the Court:
The court found that there was no infirmity or irregularity in the trial court's decision to acquit the respondent, as there was no legally enforceable debt or liability under Section 138 of the NI Act. The court also emphasized the discretionary power of granting special leave to appeal against acquittal and the need for judicious exercise of such power.
Issues: The issues revolved around the legal enforceability of the debt or liability under Section 138 of the NI Act, the power of the appellate court to review evidence in cases of acquittal, and the discretionary nature of granting special leave to appeal against acquittal.
Ratio Decidendi: The court's decision was based on the finding that there was no legally enforceable debt or liability under Section 138 of the NI Act, and the discretionary nature of granting special leave to appeal against acquittal, emphasizing the need for judicious exercise of such power.
Final Decision: The court rejected the application seeking special leave to appeal and dismissed the appeal, affirming the trial court's decision to acquit the respondent.
JUDGMENT
Jagmohan Bansal, J. (Oral) - CRM-35621-2022
1. Application is for condonation of delay of 239 days in filing the appeal.
2. Keeping in view the averments made in the application, the application is allowed and delay is condoned.
3. CRM stands disposed of.
CRM-A-551-2022
1. The appellant through instant application under Section 378(4) Cr.P.C. is seeking grant of special leave to appeal against order dated 12.11.2018 whereby learned Judicial Magistrate Ist Class, Yamuna Nagar has dismissed complaint of the appellant, filed under Section 138 of Negotiable Instruments Act (for short, 'NI Act') and further acquitted the accused/ respondent.
2. The brief facts emerging from record and argument of learned counsel for the appellant are that appellant paid a sum of Rs.1 lakh through banking channel on 21.02.2015 to the respondent and further paid in cash a sum of Rs.2 lakhs in two installments for getting his brother appointed in Railway Department. The respondent failed to get a job in the Department of Railway for the brother of the appellant, thus, appellant asked the respondent to return his money. The respondent agreed to return his (appellant) funds and accordingly issued two cheques of Rs.1.5 lakh each dated 11.02.2016 and 16.02.2016 respectively. The appellant presented the aforesaid cheque which came to be returned on account of 'insufficient funds'.
3. Learned Trial Court has dismissed complaint on the sole ground that rigour of Section 138 of N.I. Act can be invoked if only there is legally enforceable liability and it is admitted case of the appellant that he had paid a sum of Rs.3 lakhs to respondent for getting job in the Department of Railway which is a Government Department. The money even if accepted was paid, it was for illegal activities and it cannot be called as legally enforceable liability.
4. Learned trial Court has dismissed complaint of the appellant on the ground that complainant knew from the beginning that he was advancing money to the accused for procuring railway job for the brother of the complainant. Railway is a Government Department which has a mechanism of employment, thus, securing a Government job by giving money is an illegal agreement. Learned Trial Court has further held that complainant had knowledge at the time of advancing money that the same was going to be used for illegal purposes. Thus, there does not exist any legally enforceable debt for which the cheque in question was issued.
5. Learned counsel for the appellant pleaded that there exists a legally enforceable debt against the accused, however, learned trial Court has wrongly recorded finding that cheque was not issued in discharge of legally enforceable debt/liability.
6. I have perused the record and heard arguments of the appellant. The present application seeking special leave to appeal is bereft of merit and deserves to be dismissed.
7. Hon'ble Supreme Court in a catena of judgments while dealing with scope and powers of the appellate court in dealing with an appeal against an order of acquittal has elucidated:
(i) An appellate court has full power to review, reappreciate and reconsider the evidence upon which the order of acquittal is founded.
(ii) The Code of Criminal Procedure, 1973 puts no limitation, restriction or condition on exercise of such power and an appellate court on the evidence before it may reach its own conclusion, both on questions of fact and of law.
(iii) Various expressions, such as, 'substantial and compelling reasons', 'good and sufficient grounds', 'very strong circumstances', 'distorted conclusions', 'glaring mistakes', etc. are not intended to curtail extensive powers of an appellate court in an appeal against acquittal. Such phraseologies are more in the nature of 'flourishes of language' to emphasise the reluctance of an appellate court to interfere with acquittal than to curtail the power of the court to review the evidence and to come to its own conclusion.
(iv) An appellate court, however, must bear in mi
AI
The central legal point established in the judgment is the requirement of a legally enforceable debt or liability under Section 138 of the NI Act for invoking the rigor of the section, and the discre....
Compliance with the mandate of the law, discrepancies between legal notice and complaint, and the court's discretion in granting special leave to appeal against acquittal.
Proof of legally enforceable debt is essential under Section 138 of NI Act, and the court should favor the innocence of the accused when two views are possible.
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