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IN THE HIGH COURT OF MADHYA PRADESH
Deepak Kumar Agarwal, J.
Bhagwat Prasad Parashar – Appellant
Versus
Ajendra Bais & Ors. – Respondents
Criminal Revision No. 4701 of 2022
Decided On : 24-01-2023
Negotiable Instruments Act - Conviction and Sentence - Cheque dishonour for existing liability
Fact of the Case:
The petitioner issued cheques in discharge of an existing liability, which were subsequently dishonoured, leading to a complaint under Section 138 of the Negotiable Instruments Act. The lower courts convicted and sentenced the petitioner, and the appeal against the judgment was dismissed.
Finding of the Court:
The court found that the cheques were issued by the petitioner in discharge of an existing liability and were subsequently dishonoured, which constituted an offence under Section 138 of the Negotiable Instruments Act. The court held that the findings of the lower courts were correct based on the evidence and law, and that the jurisdiction of the court in a criminal revision application is restricted.
Issues: The issues revolved around the dishonour of cheques issued for an existing liability, the correctness of the lower courts' findings, and the restricted jurisdiction of the court in a criminal revision application.
Ratio Decidendi: The court's decision was influenced by the fact that the cheques were issued in discharge of an existing liability and were subsequently dishonoured, which constituted an offence under Section 138 of the Negotiable Instruments Act. The court also relied on the restricted jurisdiction of the court in a criminal revision application, as established in previous judgments.
Final Decision: The court found no merit in the revision petition and dismissed it, upholding the impugned judgments and orders passed by the lower courts.
JUDGMENT
1. This criminal revision petition has been filed by the petitioner challenging the judgment of conviction and order of sentence dated 29.11.2018 passed by learend Judicial Magistrate First Class Guna, in Criminal Case No.901/2015, whereby the accused-petitioner was convicted and sentenced under Section 138 of the Negotiable Instruments Act and to undergo rigorous imprisonment for a period of six months and to pay compensation of 12 lacs and also challenging the judgment dated 29.10.2022 passed by Fifth Additional Sessions Judge Guna, vide which appeal filed by petitioner against the judgments dated 29.11.2018 was dismissed.
2. As per the facts of the case, respondent No.1/complainant had entered into an agreement to sale of land piece bearing survey Number Patwari Halka number 1209/1B total land 19575 sq. ft. with the petitioner and his business partner Chandra Bhan Raghuvanshi wife Hemlata Raghuvanshi. Agreement to sale of land was executed into two parts and consideration of sale was not given in cash by the petitioner and issued a cheque of Rs. 35,60,000/- dated 22.03.2013 of the Punjab National Bank. The petitioner/accused had taken back the said cheque and made cash payment of Rs.5,60,000/- and issued two another cheque of Rs.5 Lakhs and Rs.25 Lakhs on 24.03.2013. When both the cheques were presented by the complainant in the bank, it got dishonoured because of insufficiency of funds. Thereafter petitioner took back the said dishonoured cheques and issued fresh cheques of SBI Banks amounting to Rs.5 Lakhs, 9 Lakhs, 7 Lakhs total Rs.30,00,000/-. On 28.05.2013 and on 06.07.2013 petitioner paid Rs. 2 Lakhs and Rs.3 Lakhs in cash to the complainant and took back the cheque amounting to Rs.5 Lakhs. Thereafter petitioner took back three remaining cheques and Rs.14,50,000/- was paid to the complainant in cash and in regard to remaining amount i.e. Rs. 10,50,000/- two fresh cheques amounting to Rs.2,50,000/- and Rs.10,00,000/- were issued. When both the cheques were presented by the complainant in the bank, it also got dishonoured because of insufficiency of funds. A notice was sent by the complainant to the petitioner by registered A.D. On 18.10.2013 but despite that, petitioner had not paid the cheque amount, for which respondent No.1 had filed a complaint for the alleged offence under Section 138 of Negotiable Instruments Act against the accused.
3. After appreciating the evidence, learned JMFC, Guna, convicted and sentenced the accused-petitioner as stated above . Appeal against the judgment dated 29.11.2018 was filed, which was dismissed by learned Fifth Additional Sessions Judge Guna vide judgment dated 29.10.2022.
4. Aggrieved from the above-said judgment, the above- mentioned revision petitions has been filed by the petitioner.
Notice of motion was issued and learned counsel for respondent No.1 as well as learned State counsel appeared and contested the petitions.
5. On 22.12.2022 petitioner had given an undertaking before the coordinate Bench that she will deposit decreetal amount of Rs.12 lacs within 30 days from the date of passing of this order but could not fulfill the undertaking given by her and today again she is seeking extension of time to fulfill the said undertaking.
6. After hearing learned counsel for the parties as well as learned State counsel and after going through the record, this Court finds that the fact regarding existing liability and issuance of cheques by the petitioner is not disputed. Admittedly, the cheques were issued by the present revision petitioner, which were dishonoured and the cheques were issued in discharge of existing liability. The proceedings under Section 138 of the Act are criminal proceedings. The findings given by learned Courts below are correct, as per evidence and law. The offence under Section 138 of the Negotiable Instruments Act has been duly proved by the complainant by leading cogent evidence.
7. In the revision petition, this Court is not to re-appreciate the evidenc
Issuing cheques in discharge of an existing liability, which are subsequently dishonoured, constitutes an offence under Section 138 of the Negotiable Instruments Act. The jurisdiction of the court in....
Proper adherence to procedural requirements and principles of law in dismissing appeals and considering suspension of sentence under Section 138 of NI Act.
The presumption of issuance of a cheque for consideration under Section 139 of the Negotiable Instruments Act is not rebutted by mere denial of the transaction without evidence.
The legal enforcement of Section 138 of the Negotiable Instruments Act is affirmed with an emphasis on the sufficiency of evidence and statutory notice requirements.
The dishonor of cheque constitutes an offence under Section 138 of the Negotiable Instruments Act when the complainant presents sufficient evidence to support the liability.
The court has the discretion to alter the sentence under Section 138 of the Negotiable Instrument Act based on the circumstances and payment made by the accused.
The main legal point established in the judgment is the application of the presumption under Section 139 of the Negotiable Instruments Act and the importance of proving the contrary to rebut the pres....
Presumption in favor of the holder of the cheque under Section 139 of the Negotiable Instruments Act.
The court upheld conviction for cheque dishonor under the Negotiable Instruments Act, allowing time to remit the fine.
The court upheld the conviction under Section 138 of the NI Act, emphasizing that the revisional jurisdiction does not allow interference unless findings are grossly erroneous.
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