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VIKRAM AGGARWAL
Bahadur Singh – Appellant
Versus
Jai Kumar Garg – Respondent
JUDGMENT :
Vikram Aggarwal, J.
This is defendant’s second appeal against the judgment and decree dated 05.07.2016, passed by the Court of learned Additional District Judge, Kaithal, dismissing the appeal filed by the defendant against the judgment and decree dated 30.01.2016, passed by the Court of learned Civil Judge (Junior Division), Kaithal, vide which the suit for recovery filed by the plaintiff was decreed.
2. For the sake of convenience and clarity, parties shall be referred as per their original status.
3. The plaintiff filed a suit for recovery of Rs. 58,500/- (Rs. 45,000/- as Principal amount and Rs. 13,500/- as interest). The case set up was that the defendant had taken a friendly loan of 45,000/- from the plaintiff and had issued a cheque bearing No.623616 dated 18.09.2009 for Rs. 45,000/- in favour of the plaintiff in discharge of his legally enforceable liability. The cheque issuing slip in his hand writing duly signed by the defendant was also issued. On presentation, the cheque was dishonoured vide memo dated 19.09.2009 on the grounds of ‘insufficient funds’. A registered notice dated 29.09.2009 was issued to the defendant but despite the same, the payment was not made
A cheque issued in discharge of a legally enforceable liability constitutes basis for recovery under Section 138 of the N.I. Act, irrespective of prior acquittals in criminal cases.
An admission of signature on a negotiable instrument creates a legal presumption of consideration, which must be rebutted effectively by the defendant.
The presumption under Section 139 of the N.I. Act is attracted when the accused admits the issuance of the cheque and his signature upon the same. The accused can rebut this presumption either by eff....
The burden of proof, legal presumptions, and the accused's admission of debt in the issuance of the cheque are crucial in determining liability under the Negotiable Instrument Act.
The presumption under Section 139 of the Negotiable Instruments Act is rebuttable, and the accused must raise a probable defense to contest the existence of a legally enforceable debt.
The issuance of a cheque signifies a legally enforceable debt under Section 138 of the N.I. Act, and the burden to prove otherwise lies with the accused, not the complainant.
The presumption under Section 139 of the Negotiable Instruments Act must be drawn in favor of the holder of the cheque, and misinterpretation of evidence by the Trial Court warrants leave to appeal.
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