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E. V. VENUGOPAL
C. Harinath Goud – Appellant
Versus
M. Lalitha – Respondent
JUDGMENT :
(E.V. Venugopal, J.)
This appeal is preferred by the appellant aggrieved by the judgment dated 07.06.2017 in C.C.No.383 of 2016 on the file of the learned Special Judicial Magistrate Court-II, Rajendranagar, R.R.District (for short, “the trial Court”) wherein and whereunder the learned Magistrate acquitted respondent/accused for the offence under Section 138 of the Negotiable Instruments Act (for short, “the NI Act”).
2. Heard Mr.Dinesh Reddy Malli Reddy, learned Amicus Curiae appearing on behalf of the appellant and Mr.Rama Kotaiah, learned Assistant Public Prosecutor appearing for respondent.
3. The brief facts of the case are that on 14.02.2015, respondent/accused borrowed an amount of Rs.4,00,000/- from the appellant/complainant. After receiving the said amount, the accused voluntarily executed the promissory note in favour of the complainant. But he failed to repay the amount within the stipulated time. Instead of repaying the amount, she issued cheque bearing No.304071 dated 19.08.2016 for the sum of Rs.4,00,000/- towards discharge of the existing debt. On presentation, the said cheque was returned unpaid for the reason, “funds insufficient” in the account of the accu
In an appeal against acquittal, the appellate court may only interfere if the trial court's decision is perverse or illegal, reinforcing the presumption of innocence.
The cheque amount exceeding the borrowed amount negates the applicability of Section 138 of the Negotiable Instruments Act, requiring the Complainant to establish a legally enforceable debt.
The complainant must prove the existence of a legally enforceable debt in a Section 138 NI Act case, and discrepancies in testimony can undermine the presumption of consideration.
The cheque must represent a legally enforceable debt at the time of encashment; the burden to rebut the presumption of liability lies with the accused.
The court affirmed that the presumption under Section 139 of the NI Act can be rebutted, and the burden remains on the complainant to substantiate the existence of a legally enforceable debt, failing....
In acquittal appeals, the appellate court respects the presumption of innocence and can only overturn a trial court's acquittal if it is perverse or based on a misreading of evidence.
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