AI Overview...
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Presumption of Liability under Section 138 NI Act - When a cheque is issued, there is a legal presumption that it was issued for the discharge of a debt or liability. This presumption can only be rebutted with substantial evidence by the accused. The burden then shifts to the accused to prove that the cheque was not issued for any debt or liability T.G.MANI Vs M/S. K AND V METAL CRUSHING INDUSTRIES - Kerala, ASSAINAR Vs AKBAR TOUR & TRAVELS PVT.LTD - Kerala, Gurmail Singh VS Jagjit Singh - Punjab and Haryana, Gorantia Venkateswara Rao VS Kolla Veera Raghava Rao - Dishonour Of Cheque.
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Burden of Proof on the Accused - The accused must prove that the cheque was not issued in respect of a debt or liability, such as through cash payments or other evidence. Failure to do so results in the presumption of liability standing, and the accused may be held criminally liable for dishonor of the cheque ASSAINAR Vs AKBAR TOUR & TRAVELS PVT.LTD - Kerala, Gorantia Venkateswara Rao VS Kolla Veera Raghava Rao - Dishonour Of Cheque.
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Partial Discharge of Liability - Cheques issued for partial discharge of a debt are still presumed to be issued in discharge of a liability unless the accused proves otherwise. The courts emphasize that the initial presumption favors the complainant, and the accused must establish a probable defense to rebut this M. SHABEER
vs
ANITHA BAJEE - Kerala, Doshi Brothers VS State of Maharashtra - Bombay. -
Legal Proceedings and Evidence - The courts uphold that the complaint must specify the debt amount and liability. The accused can contest liability by producing evidence, but failure to do so results in conviction. The legal process involves balancing the presumption of liability with the evidence presented by the accused T.G.MANI Vs M/S. K AND V METAL CRUSHING INDUSTRIES - Kerala, Gorantia Venkateswara Rao VS Kolla Veera Raghava Rao - Dishonour Of Cheque.
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Nature of Offense - Offenses under Section 138 NI Act are quasi-criminal, with the burden on the accused to prove that the cheque was not issued for any enforceable debt. Courts require clear evidence to rebut the presumption, and failure to do so leads to conviction ASSAINAR Vs AKBAR TOUR & TRAVELS PVT.LTD - Kerala, Gorantia Venkateswara Rao VS Kolla Veera Raghava Rao - Dishonour Of Cheque.
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Additional Legal Principles - Releasing one joint promisor or co-surety does not discharge the liability of others, and the principle of joint liability applies. The courts maintain that the order of the Debt Recovery Tribunal (DRT) cannot be recalled to alter liability once established SSA Constructions VS Andra Bank Gandhi Nagar Branch - Karnataka.
Analysis and Conclusion:
Under Section 138 of the Negotiable Instruments Act, the issuance of a cheque creates a presumption that it was issued to discharge a debt or liability. The burden of proof shifts to the accused to rebut this presumption with substantial evidence. Partial payments or discharge do not automatically negate liability, but the accused can establish otherwise. The courts consistently uphold the initial presumption of liability unless convincingly rebutted, emphasizing the importance of clear evidence to challenge the presumption. Offenses under Section 138 are treated as quasi-criminal, with strict evidentiary requirements for the accused to escape liability.
Search Results for "Ni Act 138 5 Partial Discharge Liability 40"
2020 Supreme(Online)(KER) 930 • India - High Court of Kerala
N.ANIL KUMAR, J
Ratio Decidendi: The presumption that a cheque is issued to discharge a debt can only be rebutted by substantial evidence. ... Negotiable Instruments - Criminal Revision - Negotiable Instruments Act, 1881 - Section 138, 118, 139 - The court upheld the conviction ... Issues: Whether the conviction under Section 138 of the Negotiable Instruments Act is sustainable given the evidence, and ... Towards partial discharge of the liability, according to ....
2020 Supreme(Online)(KER) 31841 • India - High Court of Kerala
N.ANIL KUMAR, J
deemed as issued for a debt discharge unless disproved. ... Issues: Whether the accused discharged his burden to prove that the cheque issued was not in respect of a debt or liability ... Act implies that once a cheque is executed, it is presumed to be for discharging a liability until proven otherwise, placing the ... However, he contended that he had paid Rs.1.5 lakh in cash to the complainant in order to avoid delay in encashing the cheque. He further stated that the aforesaid amount of Rs.1.#HL_STA....
2022 0 Supreme(P&H) 931 • India - Punjab and Haryana
VIKAS BAHL
Act, arguing that the complaint did not specify the liability or original debt amount. ... the drawer of the cheque to pay interim compensation, and that the presumption of liability of the drawer of the cheque for the ... N.I. ... issued for payment of a debt or in discharge of a liability. ... The onus would still be on the accused to prove that the cheque was not in discharge of a debt or liability by adducing evidence. xxx xxx xxx 40. ... Learne....
2017 0 Supreme(Ker) 1473 • India - Kerala
ALEXANDER THOMAS
The Negotiable Instruments Act, Section 138, S.139, Section 5, Section 20, Section 87, sections 20, 49, 86 and 125, Sections 5, 6 ... and 7,, Section 138(b) - The Code of Criminal Procedure,Section 357 (3)- Section 397 and 401,Section 482, ... 19.
2022 Supreme(Online)(KER) 9933 • India - High Court of Kerala
A. BADHARUDEEN, J
Fact of the Case: The accused was convicted for dishonoring cheques issued in partial discharge of a liability. ... They emphasized the initial presumption of liability on the accused's part until rebutted. ... Revision - Criminal Procedure - Code of Criminal Procedure 397, 401; Negotiable Instruments Act 138, 142 - The Judiciary emphasized ... In these matters, the complainant launched prosecution alleging commission of offence punishable under Section 138 of the N....
• India - Dishonour Of Cheque
G.YETHIRAJULU
, 1881—Section 138—Dishonour of cheque—Complaint—Legally enforceable debt—Non-filing of civil suit ... Since the accused failed to discharge his burden, he cannot escape from criminal liability under Section 138 of the Act. ... Janakirama Naidu and another2 this Court while dealing with sections 138 and 139 of the Act held that whenever there is denial of liability under a cheque issued by the accused, the burden is on the said accused to prove that ....
• India - Dishonour Of Cheque
DAMA SESHADRI NAIDU
favour of a holder of cheque that same has been issued for discharge of any debt or other liability – Prosecution must prove guilt ... which he relies – If accused can raise a probable defence which creates doubts about existence of a legally enforceable debt or liability ... , courts regard offences under Section 138 of NI Act as quasi-criminal – NI Act contains certain non-obstante provisions barring ... Sial and another, on 16 January 2010, for an aggregate of Rs.6 lakh, towards #HL....
2019 0 Supreme(Bom) 874 • India - Bombay
DAMA SESHADRI NAIDU
– Partial discharge of the Companys debt – Dishonour of a cheque – Appellant Brothers is a proprietary concern – Through its proprietor ... Criminal Procedure Code, 1973 – Sections 313, 200, 385 – Negotiable Instruments Act – Sections 138, 142 ... their continued business transactions, he supplied goods to the Company and received cheques, signed by Sial and another, for the partial ... Sial and another, on 16 January 2010, for an aggregate of Rs.6 lakh, towards partial disch....
2021 7 Supreme 305 • India - Supreme Court
D. Y. CHANDRACHUD, VIKRAM NATH, B. V. NAGARATHNA
of NI Act – Breach of deed of compromise has arisen due to dishonour of cheques which were issued by accused towards discharge of ... of a liability – Question as to whether liability exists or not is clearly a matter of trial – There was a serious error on part ... (Paras 34, 36, 37, 38 and 40) (C) Negotiable Instruments Act, 1881 – Sections 138 and 147 – Criminal Procedure ... of two sets of cheques – both issued for the discharge of the same #HL_S....
2024 0 Supreme(Kar) 598 • India - Karnataka
HEMANT CHANDANGOUDAR
the others, affirming the principle of joint liability among sureties. ... estoppel - The court held that the DRT lacks plenary powers to recall its orders and that the release of one co-surety does not discharge ... ) ... ... Ratio Decidendi: The court ruled that the DRT cannot recall its orders and that the release of one co-surety does not discharge ... Section 138 of the Indian Contract Act extends the principle in Section 44: 138. ... Releasing one joint promisor does not #HL_S....
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