PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH
MANJARI NEHRU KAUL, J.
Surinder Singh - Appellant
Vs.
Ram Dev - Respondent
CRM-A-233-2021
Decided On : 15-10-2024
JUDGMENT :
Manjari Nehru Kauu, J.
The present appeal has been filed for setting aside the impugned judgment dated 15.01.2020 passed by JMIC Ferozepur, whereby the accused-respondent had been acquitted of the charges in a complaint filed under Sections 138/142 of the Negotiable Instruments Act, 1881 (hereinafter referred to as 'the NI Act')
2. The learned counsel for the complainant (hereinafter referred to as the appellant) contends that the trial Court gravely erred in failing to appreciate the evidence adduced during the trial, thereby rendering the judgment liable to be set aside. It is argued that the accused (hereinafter referred to as the respondent), in collusion with his brother-in-law Amandeep and certain other individuals, intentionally deceived the petitioner by providing false assurances; the respondent, gave an undertaking, and assured the appellant that if a sum of Rs. 1,20,000,00/- was paid to the respondent's brother-in-law, he would secure employment for certain individuals in the Punjab Police. Acting upon this fraudulent assurance, an amount of Rs. 1,20,000,00/- was given to the respondent's brother-in-law. However, it soon became apparent that no such appointments were secured, and the petitioner realized that a fraud had been committed. Consequently, FIR No. 08, dated January 29, 2016, was registered under Sections 420 and 120-B of the Indian Penal Code (IPC) against the respondent's brother-in-law and other accomplices for the offences of cheating and criminal conspiracy.
3. Following the registration of the FIR, the respondent approached the appellant and proposed a settlement, acknowledging the deceitful conduct. As part of this compromise, an affidavit dated April 05, 2016, was executed by the respondent. In furtherance of this settlement, the respondent issued a cheque dated October 05, 2016, for the sum of ? 1,00,000 in favour of the appellant, ostensibly to discharge his legal liability. However, when the appellant presented the cheque for encashment, it was dishonoured on November 02, 2016, with the bank noting that the respondent's account had been closed. Despite the issuance of a legal notice on November 28, 2016, the respondent failed to remit the cheque amount within the statutory period, leading the appellant to pursue legal action.
4 The counsel for the appellant further argues that the trial Court erred in acquitting the respondent based on the premise that the appellant, while deposing as CW-1, admitted that the amount in question had been paid as a bribe to the respondent for securing employment in the Punjab Police. The trial Court held that, since the cheque amount represented a bribe, there was no legally enforceable debt or liability under Section 138 of the NI Act. The learned counsel vehemently contends that once the respondent admitted to having taken a bribe and subsequently compromised the matter, it should have been construed as a legally enforceable debt or liability, given the respondent's acknowledgment of receiving the sum. Moreover, the respondent did not dispute the execution of the cheque, nor did he deny his signature or handwriting on the instrument, thus raising a presumption that the cheque was issued to discharge a legally enforceable debt.
5. I have heard learned counsel for the parties and have perused the relevant material placed on record.
6. Upon careful examination of the evidence and the submissions made by the parties, it is pertinent to note that the appellant himself unequivocally admitted during his cross-examination before the trial Court that the cheque amount was paid as a bribe to the respondent for securing Government employment in the Punjab Police by certain job aspirants. Given this admission, it is imperative to clarify that the cheque amount cannot, under any circumstances, be deemed to have been issued in discharge of a legally enforceable debt or liability.
7. Under Section 138 of the NI Act, the mere issuance of a cheque does not constitute an offence
The court emphasized that under Section 138 of the Negotiable Instruments Act, there is a presumption that cheques are issued for discharging legal liabilities, which the accused must rebut.
(1) Dishonour of cheque – Where complainant’s case is based on a specific claim that money was given for securing a TNSTC job and cheque was issued to repay this amount, there is no legally enforceab....
:DISHONOUR OF CHEQUE – ACQUITTAL UNDER - under Section 139 of the N.I. Act, there is a presumption that the holder of the cheque received it for the discharge of debt or liability, but the existence ....
Burden of proving that a chqeue has not been issued for debt or liability is on the accused, after the initial burden is discharged.
The court upheld that a dishonored cheque creates a presumption of liability unless adequately rebutted, reinforcing the legal principles under Sections 118 and 139 of the Negotiable Instruments Act.
The presumption of issuance for repayment under Section 139 of the N.I. Act can be rebutted by the accused with sufficient evidence.
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