IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD
B. SIVA SANKARA RAO, J.
C. Anuradha – Appellant
Versus
State of Andhra Pradesh – Respondent
Criminal Appeal No. 1253 of 2009
Decided On : 07-09-2022
Negotiable Instruments Act - Section 138 - Code of Criminal Procedure - Section 251 and 357 - Cheque dishonoured – Appeal against Acquittal - Whether accused did not issue cheque in favour of complainant for discharge of legally enforceable debt to make liable for the offence under Section 138 of the NI Act and if so, Trial Court’s acquittal judgment is unsustainable– Held, complainant be compensated and that ‘unlike for other forms of crime, punishment here (insofar as complainant is concerned) is not a means of seeking retribution, but is more a means to ensure payment of money - Complainant’s interest lies primarily in recovering money rather than seeing drawer of cheque in jail - Threat of jail is only a mode to ensure recovery - As against accused who is willing to undergo a jail term, there is little available as remedy for holder of cheque - Submission by appellant/complainant of endeavour is to recover amount of compensation from out of fine or otherwise, rather than sentencing accused to jail, accused is at present taken to judicial custody and is sentenced to undergo Simple Imprisonment till rising of the day and to pay a fine with default sentence of three months simple imprisonment - Criminal Appeal is allowed
JUDGMENT :
B. SIVA SANKARA RAO, J.
1. The appellant-complainant seeks to assail the judgment of acquittal dated 16.03.2009 passed by the learned Principal Junior Civil Judge, Markapur, in private complaint case C.C. No. 160 of 2007 filed by said complainant against the accused Dodda Surya Narayana (2nd respondent herein), for an offence under Section 138 of the Negotiable Instruments Act (for brevity ‘the Act’).
2. The facts before the Trial Court are that the accused borrowed Rs. 1,49,623 from the complainant but failed to repay despite demands, ultimately the accused issued Ex.P.1 cheque from his account in favour of the complainant for said amount, dated 04.10.2006 drawn in State Bank of India, Markapur, presented for collection in Syndicate Bank, Markapur, on 01.03.2007, returned dishonoured on the reason of ‘insufficiency of the funds’ covered by Ex.P.2 cheque return memo, and Ex.P.3 is returned cheque and the same is intimated to the accused through legal notice, dated 05.03.2007 covered by Ex.P.4, issued by the complainant to the accused, and though the accused received notice not paid the amount, hence the complainant is constrained to file the private complaint case.
3. The accused appeared before the Court pursuant to the summons and after supply of case copies under Section 207 of the Code of Criminal Procedure, when questioned on substance of accusation under Section 251 of the Code of Criminal Procedure (for brevity, “The Cr.P.C.”) he pleaded not guilty.
4. On behalf of the complainant during the course of trial besides himself as PW1 cause examined PW2 K.V.S. Siva and got marked Exs. P.1 to P.4, as mentioned above and the accused also cross-examined the PWs. 1 and 2 and on defence side the accused examined himself as DW-1 only and got marked Ex.D.1 calculation memo.
5. After closure of evidence, the accused was examined under Section 313 of the Cr.P.C. who denied the incriminating material put to him and stated no defence.
6. Appreciating the evidence, both oral and documentary, the Court below ultimately held that the complainant could not prove guilt of the accused for the offence under Section 138 of the N.I. Act and thereby not found guilty in acquitting the accused with findings that in view of the principles of law laid down by the Apex Court in Krishna Janardhan Bhat vs. Dattatraya G. Hegde, (2008) 1 SLT 593 : (2008) 1 CCR 199 (SC) : (2008) 2 BC 44 (SC) : (2008) 1 DLT (Crl.) 449 (SC), it should be held that the complainant has failed to discharge his initial burden that the accused had given Ex.P.1 cheque towards discharge of existing legally enforceable debt and held the accused is not guilty.
7. It is attacking the said findings, the present appeal is filed with the contentions in the grounds that the acquittal judgment of Trial Magistrate is contrary to law, that the Trial Magistrate erred in holding the complainant failed to discharge his initial burden that the accused has given Ex.P.1 cheque towards discharge of existing legal enforceable debt in spite of the legal position as contemplated under Section 139 of the N.I. Act, that the Court below ought to have noticed that the accused issued cheque dated 04.10.2006 for a sum of Rs. 1,49,623/- drawn on the State Bank of India, Markapur and therefore ought to have drawn presumption in favour of the complainant, that the Trial Magistrate erred in holding that the burden lies on the complainant to prove that there was a legal enforceable liability between the complainant and accused and the cheque was issued towards the discharge of the said liability, that the Court below ought to have disbelieved the unimaginable version of the accused that the complainant obtained his signature when he has taken the prize money in the chit transaction and later filed it with counter interest, that the Court below totally erred in acquitting the accused on the presumption that the burden lies on the complainant to prove that there was a legally enforceable debt in spite of the f
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The presumption of debt under Section 139 of the Negotiable Instruments Act is not rebutted by mere denial; the accused must provide credible evidence to support their defense.
The presumptions under sections 138 and 139 of the NI Act favor the holder, shifting the burden to the accused to rebut the claims of liability.
The issuance of a cheque under the Negotiable Instruments Act creates a statutory presumption of debt, which the accused must rebut to avoid liability; mere claims of illegality without evidence do n....
The presumption of liability under the NI Act is rebuttable, and the burden of proof lies on the complainant to establish the existence of a legally enforceable debt.
Presumption under Section 139 of the Negotiable Instruments Act requires the accused to present credible evidence to rebut the holder's claim of legal liability regarding the cheque issued.
The judgment established the principle that the presumption of debt and liability under Sec. 139 of N.I. Act can only be rebutted by probabalising a defence, and the standard of proof required is pre....
The presumption under Section 139 of N.I. Act is a presumption of law, as distinguished from the presumption of facts. Presumptions are rules of evidence and do not conflict with the presumption of i....
The issuance of a cheque signifies a legally enforceable debt under Section 138 of the N.I. Act, and the burden to prove otherwise lies with the accused, not the complainant.
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