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IN THE HIGH COURT OF MADHYA PRADESH AT GWALIOR
G.S.Ahluwalia
Suresh Singh Sikarwar – Appellant
Versus
Radheshyam Sharma – Respondent
JUDGMENT :
G. S. Ahluwalia, J.
This criminal appeal, under Section 378 of Cr.P.C, has been filed against the judgment of acquittal dated 28.01.2011 passed by JMFC, Gwalior in Case Number 5103/2009, by which respondent has been acquitted of the charge under Section 138 of the Negotiable Instruments Act.
2. Challenging the judgment of acquittal passed by trial Court, it is submitted by counsel for appellant that the respondent had issued a cheque No. 90299 of Rs.1,35,000 in discharge of his legal liability. The said cheque was presented and the same was returned by the Bank with an endorsement "Insufficient Funds and drawers signature differ". When an information was given to respondent, he again instructed to re-deposit the cheque which was once again returned back with an endorsement "Insufficient funds and alteration requires full signature". The applicant issued a statutory notice on 15.05.2009. However, respondent did not pay the cheque amount within the stipulated period, and accordingly, a complaint under Section 138 of the Negotiable Instruments Act was filed. The trial Court, by order dated 28.1.2011 held that respondent had given a cheque of Rs.1,35,000/- in discharge of h
A dishonored cheque primarily for insufficient funds establishes liability under Section 138, while secondary reasons like signature discrepancies are irrelevant unless intent to defraud is proven.
A cheque issued from an account not held by the issuer fails to satisfy the basic requirements under Section 138 of the Negotiable Instruments Act, leading to acquittal.
A mandatory presumption applies in dishonour cases under Section 138 of the Negotiable Instruments Act, requiring the accused to provide evidence to rebut the lawful liability for which a cheque was ....
Dishonour of cheque – Criminal prosecution against accused in such cases should be allowed to proceed where incomplete signature is appearing on cheque.
Insufficient funds for a cheque issued to discharge a lawful liability establishes an offence under Section 138 of the Negotiable Instruments Act, which includes a statutory presumption that must be ....
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