IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
G. Sridevi, J.
B. Sunder – Petitioner
Versus
The State of AP Rep By Its PP Hyd., And Another – Respondents
CRL.R.C.No.1288 of 2007
Decided On : 28-01-2022
Code of Criminal Procedure, 1973 - Sections 200, 397 and 401 - Negotiable Instruments Act, 1881 - Section 138, 139 - Repayment of debt - Cheque was dishonoured - Case is filed against judgment passed in Crl.A. wherein learned Additional Metropolitan Sessions Judge confirmed judgment passed - Held, 2nd respondent/complainant (P.W.1) has admitted in his cross-examination that he has withdrawn Rs.30,000/- by depositing cheque of revision petitioner/accused which clearly proves contention of revision petitioner/accused that 2nd respondent/complainant had misused cheques issued by him for obtaining a bank loan - Finding recorded by learned trial Judge that 2nd respondent/complainant had established that cheque was issued towards discharge of legally enforceable debt, which was confirmed by appellate Court, is suffered from illegality and caused miscarriage of justice - Hence, conviction and sentence imposed against revision petitioner/ accused for offence punishable under Section 138 of N.I. Act is liable to be set aside - Case is allowed.
JUDGMENT :
1. The present Criminal Revision Case is filed under Sections 397 and 401 of the Code of Criminal Procedure, 1973 against the judgment, dated 13.09.2007, passed in Crl.A.No.25 of 2006, wherein the learned Additional Metropolitan Sessions Judge, Cyberabad, N.T.R. Nagar, Hyderabad, confirmed the judgment, dated 27.02.2006, passed in C.C.No.1886 of 2005 on the file of the IX Metropolitan Magistrate, Cyberabad, Kukatpally at Miyapur.
2. The facts of the case are as under:
3. The 2nd respondent/complainant filed a private complaint under Section 200 Cr.P.C. against the revision petitioner/accused for the offence punishable under Section 138 of the Negotiable Instruments Act, stating that the revision petitioner/accused borrowed an amount of Rs.1,10,000/- from him on 26.08.1999 and executed a promissory note agreeing to repay the same within one week from the date of demand made by the 2nd respondent/complainant. On repeated demands made by the 2nd respondent/complainant, the revision petitioner/accused issued a cheque bearing No.164596, dated 05.07.2002 for Rs.1,81,400/.- drawn on State Bank of Hyderabad, Ramachandrapuram towards repayment of the said debt and when the same was presented by the 2nd respondent/complainant in his bank i.e. Global Trust Bank, Chandanagar Branch, for realization, the same was returned with an endorsement ‘Account Closed’. Therefore, the 2nd respondent/complainant got issued a notice, which was not honoured by the revision petitioner/accused. As such, the 2nd respondent/complainant filed a complaint against the revision petitioner/accused for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881.
4. In support of his case, the 2nd respondent/complainant examined himself as PW.1 and got marked Exs.P.1 to P.6, whereas the revision petitioner/accused was examined himself as D.W.1 and got marked Ex.D1 on his behalf.
5. The trial Court, after considering both oral and documentary evidence available on record, found guilt of the revision petitioner/accused for the offence punishable under Section 138 of the Negotiable Instruments Act and accordingly convicted and sentenced him to undergo simple imprisonment for a period of one year and to pay compensation of Rs.2,00,000/- to the 2nd respondent/complainant, within a period of one month from the date of judgment. Aggrieved by the same, the revision petitioner/accused preferred Crl.A.No.25 of 2006 before the Additional Metropolitan Sessions Judge, Cyberabad, Hyderabad. Vide judgment, dated 13.09.2007, the learned Sessions Judge dismissed the appeal confirming the conviction and sentence imposed by the trial Court against the revision petitioner/accused.
6. Heard the learned Counsel appearing on either side and perused the record.
7. Learned Counsel for the revision petitioner/accused would submit that though the 2nd respondent/complainant (P.W.1) admitted in his cross-examination that he was an income tax assessee, he has not shown the alleged transaction amount in his Income Tax Returns during that period and the said aspect has not been considered by both the Courts below; that P.W.1 further admitted in his cross-examination that he has not issued any notice to the revision petitioner/accused demanding repayment of loan; that P.W.1 also admitted that he has withdrawn Rs.30,000/- by depositing the cheque of the revision petitioner/accused on 01.12.2000, which establishes that the 2nd respondent/complainant had misused the cheques for wrongful gain. It is further submitted that the revision petitioner/D.W.1 has admitted in his cross-examination that he had handed over one signed blank cheque and two unsigned blank cheques to the 2nd respondent/complainant as he promised to arrange a loan for him, which clearly proves the contention of the revision petitioner/accused that the 2nd respondent/complainant had misused the cheques by manipulating and fabricating the cheques. In support of his contentions, he relied upon the follow
Dalmia Cement (Bharat) Ltd Vs. Galaxy Traders & Agencies Ltd & Ors.
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The presumption of a legally enforceable debt under Sections 138 and 139 of the N.I. Act is strong and requires evidence to the contrary by the accused, which was not provided.
Admission of cheque issuance raises rebuttable presumption under Sections 118(a), 139 NI Act of discharge of debt; security cheques attract Section 138 liability if subsisting debt exists; revisional....
The accused's failure to raise a probable defense or contest the existence of a legally enforceable debt or liability triggers the statutory presumption under Section 139 of the Negotiable Instrument....
The presumption under Sections 118 and 139 of the Negotiable Instruments Act remains in favor of the holder unless the accused provides credible evidence to rebut it.
Dishonour of cheque – If cheque is drawn not on account maintained by accused but by some other person, same will not attract provisions of Section 138 of NI Act.
Admission of cheque issuance triggers presumption of debt under NI Act; security cheque liable for existing liability; unlicensed moneylender's NI complaint maintainable; revisional court defers to c....
Presumption under Sections 118/139 NI Act not rebutted by unsubstantiated security cheque claim; such cheques enforceable under Section 138 on dishonour for insufficient funds if liability undischarg....
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