SupremeToday Landscape Ad
Back
Next
Judicial Analysis Court Copy Headnote Facts Arguments Court observation
Listen Audio Icon Pause Audio Icon
judgment-img

2024 Supreme(P&H) 1361

IN THE HIGH COURT OF PUNJAB AND HARYANA
MANISHA BATRA, J.
Sunder Lal & Anr. - Appellants
Versus
State of Punjab & Anr. - Respondents
Criminal Revision No. 681 of 2016
Decided On : 05-11-2024

Advocates:
Advocate Appeared:
For the Appearing Parties : Mr. Naresh Kumar Manchanda Adv., Mr. Amandeep Singh Samra AAG, Punjab, Mr. Avikaran Bansal Adv.

Presumptions under the Negotiable Instruments Act imply that once cheque issuance is admitted, it is presumed to discharge a legally enforceable debt, placing the burden on the accused to provide evidence to rebut this presumption.

Headnote:(A) Negotiable Instruments Act, 1881 - Section 138 - Criminal revision challenging conviction - Petitioners convicted for dishonour of cheque issued in discharge of legally enforceable debt - Courts found presumptions under Sections 118 and 139 applicable, shifting burden to accused to disprove debt - Courts held reasoning supported by evidence. (Paras 1, 3, 13, 15, 17)

(B) Burden of proof - Presumption of existence of legally enforceable debt once cheque execution admitted - The accused must establish any defence to rebut presumption (Paras 13, 15)

(C) Legal lending - Claim of money lending activity by complainant not substantiated - Mere assertion without documentary proof not sufficient to absolve liability (Paras 15, 16, 17)

Facts of the case:
Petitioners convicted under Section 138 for dishonour of a post-dated cheque of Rs.2,50,000/- issued as repayment of a loan. The cheque was dishonoured due to insufficient funds and legal notices sent were ignored.

Findings of Court:
Courts upheld the conviction based on the evidence of loan issuance and cheque dishonour, dismissing the argument that the cheque was a security without sufficient backing.

Issues: Whether the cheque was issued in discharge of a legally recoverable debt and whether the petitioners provided sufficient evidence to rebut the presumption of liability.

Ratio Decidendi: The presumptions under Sections 118 and 139 of the Act were well-applied, shifting the evidential burden to petitioners to disprove liability, which they failed to do.

Result: Petition dismissed.

Table of Content
1. allegations of loan borrowing and cheque issuance. (Para 3 , 4 , 5 , 7 , 8)
2. arguments on evidence and discrediting the complainant's claim. (Para 10 , 11)
3. court's application of presumptions under the act. (Para 12 , 14 , 15)

JUDGMENT :

Mrs. Manisha Batra, J.

The instant revision petition has been filed by the petitioners challenging the judgment of conviction and order on quantum of sentence both dated 16.02.2015 passed by the learned Judicial Magistrate 1st Class, Faridkot in Criminal Complaint bearing No. RT 717 of 2014 titled as Satwant Singh v. Sunder Lal and another whereby the petitioners had been held guilty under Section 138 of the Negotiable Instruments Act, 1881 (For short “Act”) and were sentenced to undergo imprisonment for a period of six months and to pay fine of Rs.2500/- each and in default of payment of fine, they were further sentenced to undergo imprisonment for fifteen days more and the judgment dated 04.02.2016 as passed by the Court of learned Additional Sessions Judge, Faridkot in Criminal Appeal bearing CIS No.CRA/45 of 2015 titled as Sunder Lal and another v. Satwant Singh thereby affirming the judgment/order dated 16.02.2015 passed by the Magistrate.

2. For the sake of continuity and coherence, parties shall be referred to hereinafter as per the same nomenclature as given before the trial Magistrate.

3. Brief facts relevant for the purpose of disposal of this petition are that the aforementioned complaint had been filed by the complainant Satwant Singh against the accused on the allegations that they had jointly borrowed an amount of Rs.2,50,000/- from him on 01.12.2012. To discharge their legal obligation, to repay the borrowed amount, they had issued a joint post dated cheque bearing No.0456031 dated 12.12.2012 for a sum of Rs.2,50,000/- out of their joint account in favour of the complainant. The said cheque when presented before the banker of the complainant was dishonoured and returned with the remarks “Insufficient Funds”. The complainant orally asked the accused to repay the amount of cheque but in vain. He was constrained to send legal notices to both the accused on 15.12.2012. The accused refused to receive notices and to make payment of the amount in question even after expiry of statutory period, thereby compelling the complainant to file the aforementioned complaint.

4. After considering the preliminary evidence led by the complainant, the learned Magistrate passed order dated 09.01.2013 thereby issuing process against the accused. On their appearance, they were admitted to bail and on finding a prima facie case, notice of accusation under Section 138 of the Act was served upon them. They pleaded not guilty to the notice and claimed trial.

5. The complainant produced oral as well as documentary evidence in support of the allegations as levelled in the complaint.

6. Statements of accused were recorded under Section 313 of Cr.P.C. wherein they abjured their guilt and pleaded false implication. It was pleaded by them that no amount of money had been borrowed by them from the complainant nor he was in a position to give the same and further that he had been playing fraud upon innocent persons and an FIR for commission of offence of cheating had been lodged against himself.

7. In defence evidence, the accused examined three witnesses. Several documents had also been adduced. After considering the evidence produced on record by both the parties and giving due deliberations to the contentions as raised by their respective counsel, the learned trial Magistrate held the accused guilty and convicted them in the manner as already indicated.

8. Feeling aggrieved, the accused filed an appeal before the Lower Appellate Court, which had been dismissed as mentioned above.

9. The present petition has been filed on the grounds and it is argued by learned counsel for the petitioners-accused that the impugned judgment of conviction and order on quantum of sentence as passed by learned trial

Click Here to Read the rest of this document
1
2
3
4
5
6
7
8
9
10
11
SupremeToday Portrait Ad
supreme today icon
logo-black

An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers

Please visit our Training & Support
Center or Contact Us for assistance

qr

Scan Me!

India’s Legal research and Law Firm App, Download now!

For Daily Legal Updates, Join us on :

whatsapp-icon Back to top