IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
Jasjit Singh Bedi, J.
Orient Chem Ganga Sadan (M/s) – Appellant
Versus
Namo Forging P. Ltd. (M/s) & Anr. – Respondents
CRM-A No. 688 of 2019
Decided On : 24-04-2023
| Table of Content |
|---|
| 1. factual background and details of the case. (Para 1 , 2) |
| 2. court's analysis on presumption of debt and evidential burden. (Para 7 , 15) |
| 3. arguments regarding presumption under the negotiable instruments act. (Para 8 , 10) |
| 4. analysis of statutory presumptions and evidential burdens. (Para 11 , 12 , 14) |
| 5. final conclusion dismissing the appeal. (Para 18) |
Judgment
Mr. Jasjit Singh Bedi, J.
The applicant/appellant has filed the present application for grant of leave to appeal against the judgment of acquittal dated 20.12.2018 passed by Judicial Magistrate Ist Class, Faridabad whereby the accused-respondents have been acquitted of the charges under Section 138 of the Negotiable Instruments Act, 1881.
2. The brief facts of the case are that the instant complaint came to be filed by the complainant firm/applicant-appellant (hereinafter known as ‘the complainant’) through its proprietor Mr. Prabhu Dayal Thiran stating therein that the complainant was a firm dealing in various retail lubricants. The accused-respondents (hereinafter known as ‘the accused’) had purchased material from the complainant for which the complainant had a credit account of the accused firm in their account books. Towards payment to the complainant, the accused issued a cheque bearing no. 748541 dated 01.02.2017 for Rs.1,00,000/- drawn on “State Bank of India”, Faridabad”. When the complainant presented the said cheque for encashment through its banker, the same was returned as unpaid vide return memo dated 01.03.2017 with the remarks “Funds Insufficient”. The complainant sent a legal notice dated 09.03.2017 to the accused demanding the payment of the said cheque amount but the accused failed to make the payment, leading to the filing of the complaint.
2. In preliminary evidence, the proprietor of the complainant firm Sh. Prabhu Dayal stepped into the witness box as CW-1 and tendered his duly sworn affidavit Ex.CWI/A and placed on record the following documents:-
| Sr. No. | Exhibits | Detail of Documents |
| 1. | Ex.CI | Original cheque bearing no. 748541. |
| 2. | Ex.C2 | Return memo dated 01.03.2017. |
| 3. | Ex.C3 | Legal notice dated 09.03.2017. |
| 4. | Ex.C4-C5 | Courier receipts. |
3. Upon notice, the accused appeared along with his counsel and secured his bail. Notice of accusation was served upon the accused for having committed an offence under Section 138 of Negotiable Instrument Act, to which he pleaded not guilty and claimed trial. Thereafter, the plea of the defence of the accused was recorded under Section 263(g) Cr.P.C.
4. An application under Section 145(2) of NI Act was filed on behalf of the accused seeking to recall the complainant for his cross-examination and the cross-examination of complainant was conducted.
5. In defence evidence, the accused no. 2 (respondent No.2) himself stepped into witness box as DW-1 and tendered his duly sworn affidavit Ex DWI/A and tendered the following documents:
| Sr.No. | Exhibits | Detail of Documents |
| 1. | Ex D-1 | Statement of account with effect from 01.01.2016 to 10.03.2017. |
| 2. | Ex. D-1 (again): | Statement of account with effect from 25.01.2017 to 11.04.2017. |
| 3. | Ex. D-2 | Statement of account with effect from 01.01.2016 to 10.03.2017. |
| 4. | Ex.D-3 | Statement of account with effect from 25.01.2017 1 11.04.2017. |
| 5. | Mark X | Ledger account with effect from 01.04.2015 to 31.03.2017 |
| 6. | Mark Y: | Document regarding bills and VAT deduction. |
6. Thereafter, the accused closed his defence evidence vide a separately recorded statement dated 05.12.2018.
7. After hearing the learned counsel for the complainant and the accused, the Trial Court came to the conclusion that the amount of Rs.1 lac had already been transferred to the complainant by way of NEFT, and therefore, the cheque in question had wrongly been deposited and got dishonoured by the complainant since there was no remaining legally enforceable debt. Thus, the accused came to be acquitted.
8. The learned counsel
Aruvelu v. State (2009) 10 SCC 206
Atley v. State of U.P. AIR 1955 SC 807
Ajmer Singh v. State of Punjab
Balbir Singh v. State of Punjab AIR 1957 SC 216
Basalingappa Versus Mudibasappa
Bhagwan Singh v. State of M.P (2002) 4 SCC 85
Bhim Singh Rup Singh v. State of Maharashtra
Budh Singh v. State of U.P (2006) 9 SCC 731
C. Antony Versus K.G. Raghavan Nair
Chandrappa and Ors. v. State of Karnataka
Dhanpal v. State (2009) 10 SCC 401
Dharamdeo Singh & Ors. v. The State of Bihar 1976 1 SCC 610
Gamini Bala Koteswara Rao v. State of A.P. (2009) 10 SCC 636
Ghurey Lal v. State of U.P (2008) 10 SCC 450
Goa Plast (Pvt.) Ltd. v. Chico Ursula D’Souza
Goaplast (P) Ltd. v. Chico Ursula D’Souza and Another
Hiten P. Dalal v. Bratindranath Banerjee
Hiten P. Dalal v. Bratindranath Banerjee
Jaswant Singh v. State of Haryana
K. Ramakrishnan Unnithan v. State of Kerala (1999) 3 SCC 309
K.Gopal Reddy v. State of A.P. (1979) 1 SCC 355
Karan Anand Versus Kamal Bakshi
Khedu Mohton v. State of Bihar (1970) 2 SCC 450
Krishna Janardhan Bhat v. Dattatraya G. Hegde
Kuldeep Singh v. Commissioner of Police
Kundan Lal Rallaram v. Custodian, Evacuee Property, Bombay
Lunaram Versus Bhupat Singh & others
M.G. Aggarwal Versus State of Maharashtra
M.M.T.C. Ltd. and Anr. v. Medchl Chemicals & Pharma (P) Ltd.
M.S. Narayana Menon @ Mani Versus State of Kerala
M/s Kumar Exports Versus M/s Sharma Carpets
Mallavarapu Kasivisweswara Rao v. Thadikonda Ramulu Firm & Ors.
Nagbhushan V. State of Karnataka
Narendra Singh v. State of M.P (2004) 10 SCC 699
Nur Mohammad v. Emperor AIR 1945 PC 151
Perla Somasekhara Reddy v. State of A.P. (2009) 16 SCC 98
Raj Kishore Jha v. State of Bihar
Rajinder Kumar Kindra v. Delhi Admn. (1984) 4 SCC 635
Ram Singh v. State of H.P (2010) 2 SCC 445
Ramesh Babulal Doshi v. State of Gujarat
Rekha Versus State of Haryana & another
Sachchey Lal Tiwari v. State of U.P. 2004 (11) SCC 410
Sambasivan v. State of Karala (1998) 5 SCC 412
Shambhoo Missir v. State of Bihar
Sheo Swarup v. King Emperor AIR 1934 PC 227
Sheo Swarup v. The, King Emperor
Shivaji Sahabrao Bobade v. State of Maharashtra
State of Goa v. Sanjay Thakran (2007) 3 SCC 755
State of Punjab v. Karnail Singh
State of Punjab v. Phola Singh
State of Rajasthan v. Naresh (2009) 9 SCC 368
State of Rajasthan Versus Mohan Lal
State of U.P. v. Banne (2009) 4 SCC 271
State of U.P. v. Ram Veer Singh
Surajpal Singh v. State AIR 1952 SC 52
Tulsiram Kanu v. State AIR 1954 SC 1
Union of India (UOI) v. Pramod Gupta (D) by L.Rs. and Ors.
The presumption under Section 139 of the Negotiable Instruments Act is rebuttable and the accused can discharge the burden of proof by raising a probable defense.
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