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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
SANDEEP MOUDGIL
Hari Bhagwan – Appellant
Versus
Kulbir Singh – Respondent
SANDEEP MOUDGIL, J
1. Learned counsel for the appellant by filing the present appeal, under Section 378(4) Cr.P.C, has assailed the judgment dated 04.10.2012, passed by the Judicial Magistrate Ist Class, Ludhiana, dismissing the complaint and acquitting the respondent-accused therein of the charges framed against him under Section 138 of the Negotiable Instruments Act (for short ' the Act').
2. Factual Matrix of the case leading to the filing of present petition unfolds as that the complainant/appellant had friendly relation with each other on that account accused/respondent obtained a loan of Rs.2,00,000/- in the year 2006. In order to discharge his liability, the accused issued a cheque bearing No.118818 dated 18.08.2009 in favour of complainant. On presentation of the said cheque for encashment, the same got dishonoured with the remarks “return payment stopped by drawer” vide memo dated 29.08.2009. Thereafter, the accused was served upon legal notice dated 18.09.2009 to make the payment but he defaulted and therefore this present complaint was filed.
3. It is contended that the judgment passed by the trial Court suffers from grave illegality, perversity and the same is based upon s
Issuance of a cheque acknowledges a legally enforceable liability, making the drawer liable under Section 138 of the NI Act, even if the debt is time-barred.
The court affirmed that the applicant failed to establish a legally enforceable debt under Section 138 of the NI Act, leading to the dismissal of the appeal for leave.
The nature of the debt must be proven during trial, and there is a presumption in favor of the holder of the cheque.
The main legal point established in the judgment is the presumption under Section 139 of the NI Act, the burden of proof on the accused to rebut the presumption, and the requirement for the accused t....
Dishonour of cheque – When a cheque is issued towards a time-barred debt and is dishonoured, liability under Section 138 of N.I. Act squarely arises.
Dishonour of cheque – Accused had to prove by cogent evidence that there was no debt or liability.
A cheque issued for a time-barred debt does not constitute a legally enforceable debt under Section 138 of the Negotiable Instruments Act, leading to no offence being committed.
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