AI Overview...
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Purpose of Cheque Not Proved - The courts have found that the complainant failed to establish the purpose for which the cheque was issued, such as confirming a loan or debt. In several cases, the absence of clear evidence regarding the purpose led to acquittals or reversals of conviction, emphasizing that the purpose behind issuing the cheque must be proved to sustain a case under Section 138 of the Negotiable Instruments Act Patricio DSouza VS Oscar DSouza - Bombay, Vijayraj VS Githeyon Raj - Dishonour Of Cheque, Karan Anand VS Kamal Bakshi - Punjab and Haryana.
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Issue of Due Execution - Signing a blank cheque or one not properly executed does not amount to due execution. Courts have held that mere signing of a cheque without proper issuance or without establishing the intent and purpose does not create a presumption of liability. The issuance must be proven, and the cheque must be shown to have been issued for a specific purpose, such as a debt or security P. Krishnasamy VS Delta Knit Wearables, Rep. By its Partners, R. Thiruvengadam & R. Balaji, Devi Nilayam - Madras, P. Krishnasamy VS Delta Knit Wearables - Current Civil Cases.
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Material Alteration and Validity - Material alterations, such as changing dates on the cheque, can invalidate the cheque and affect the proof of liability. The courts have scrutinized such alterations, and if they are proved to be material, they can lead to the conclusion that the cheque was not validly issued for the claimed purpose Amaravathi Chits Investments VS T. M. Vaidyanathan - Dishonour Of Cheque.
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Evidence of Loan and Purpose - The failure to prove that the cheque was issued as a loan or for a specific purpose, such as security or repayment, weakens the case against the drawer. Courts have emphasized the importance of establishing the purpose of issuance, and without such proof, the liability under Section 138 is not established Karan Anand VS Kamal Bakshi - Punjab and Haryana, Vijayraj VS Githeyon Raj - Dishonour Of Cheque.
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Signature Verification and Disputed Cheques - When the signature on a cheque is disputed or the cheque is alleged to have been filled improperly, the courts may send the cheque for expert opinion. The verification of signatures and the purpose of issuance are crucial in establishing the validity of the cheque Barakath vs Sajitha Banu - Madras.
Analysis and Conclusion:
The primary reason the purpose of a cheque is not proved in many cases is the failure of the complainant to establish the specific purpose for which the cheque was issued, such as a loan, security, or settlement of debt. Courts consistently require clear evidence linking the cheque to a particular transaction or liability. Without such proof, the presumption of liability under Section 138 of the Negotiable Instruments Act does not hold. Moreover, issues like signing a blank cheque, material alterations, or disputed signatures further complicate the proof of due execution and purpose, often leading to acquittals or judgments in favor of the accused.
Search Results for "Purpose of Cheque is Not Proved"
2008 0 Supreme(Bom) 1526 • India - Bombay
A.P.LAVANDE
proved that he had given loan of Rs. 5 Lakhs to the accused and that the accused had proved that the amount of the cheque was not ... of issuance of cheque - Not proved - Conviction by Court below but reversed by Sessions Judge - Challenged - Held - It had to be ... ... Negotiable Instruments Act, 1881 - Sections 138 and 139 - Purpose ... Upon a close scrutiny of the evidence led by the complainant and the accused, the findings given by the lower Ap....
• India - Dishonour Of Cheque
S.SARDAR ZACKRIA HUSSAIN
of limitation—Complainant not proved the liability in respect of cheque issued—Magistrate rightly acquitted the accused. ... alteration—Appeal against acquittal—Material alteration in the date of cheque by adding ‘1’ before ‘2’ in the month for the purpose ... The accused also pleaded that cheque was materially altered. ... cheque within the validity period for the purpose of limitation. ... P.1 issued by the accused and the complainant has #HL_START....
2015 0 Supreme(P&H) 1429 • India - Punjab and Haryana
JITENDRA CHAUHAN
Negotiable Instruments Act, 1881, S.138--Leave to defend--Dishonour of Cheque--Acquittal--Giving of Loan not proved--Payment has ... been stopped by drawer--Cheque issued and signed by accused--Held; purpose of advancing friendly loan by petitioner-complainant to ... accused-respondent not came forth--Contention of petitioner having taken money from his father for advancement to accused not corroborated ... Even the date on which the alleged transaction took place has....
2016 0 Supreme(Mad) 2071 • India - Madras
G.CHOCKALINGAM
the cheque amount. ... for the cheque amount. ... for the cheque amount under Section 138 of the Negotiable Instruments Act. ... The complainant was not able to establish for what purpose the cheque was issued by the accused and the notice issued by the complainant was also not proved. The appellate Court ought to have disbelieved the evidence of the complainant and dismissed the appeal. ... On perusal of Ex.P1-Cheque, both the Cour....
2019 0 Supreme(Chh) 865 • India - Chhattisgarh
RAJANI DUBEY
Negotiable Instrument Act, 1881- Section 138 – Criminal procedure code, 1973 Section 397 - Bank - Dishonored of Cheque ... complainant sought for his amount of Rs. 6,50,000/- back from applicant/accused and to satisfy complainant, applicant gave blank cheque ... which was dishonoured by Bank – Held, It has been clearly stated that the signing of cheque by the applicant indicates that he admitted ... He submits that the blank cheque was admittedly given with a purpose of security and it has not....
2025 Supreme(Online)(Mad) 63155 • India - IN THE HIGH COURT OF JUDICATURE AT MADRAS
K.MURALI SHANKAR, J
The main issue framed is whether the petitioner's signature on the disputed cheque can be verified. ... The petitioner contends that a disputed cheque was filled improperly, asserting he didn't give it for any enforceable debt while ... The Court highlights that the petitioner did not previously dispute the signature, concluding that the petition was merely an attempt ... and for that purpose, it has become just and necessary to send the disputed cheque to the handwriting expert and to get opinion. ... ....
• India - Dishonour Of Cheque
R.BANUMATHI
The Magistrate acquitted the accused as the element of ‘debt’ has not been proved. ... On the other hand, the accused contended that Ex-A1 cheque was given as a security for collateral purposes. ... ... B)Nowhere in the complaint, the purpose/nature of loan advanced ... Where a cheque is issued -not for the purpose of discharge of any debt or other liability, return of such cheque unpaid will not meet with the pen....
• India - Current Civil Cases
S.NAGAMUTHU
due execution of cheque by respondent was to be proved—Defence plea was that cheque was never issued to complainant and a blank ... and all its cheque leafs were utilized in 1998 except cheque in question—Cheque in question was used in year 2000—Complainant could ... Negotiable Instruments Act, 1881—Section 138—Dishonour of cheque—Cheque for Rs.3,00,000 was alleged to have been drawn by respondent ... But here in this case, it is the case of the thir....
2011 0 Supreme(Mad) 3015 • India - Madras
S.NAGAMUTHU
raised if the issuance of the cheque is proved. ... in favor of the holder can only be raised if the issuance of the cheque is proved. ... The court also emphasized that signing a blank cheque does not amount to due execution and that the presumption of authorization ... But here in this case, it is the case of the third respondent that the said blank cheque was not issued to the complainant but issued to one Mr.Chellappan for some other pu....
• India - Current Civil Cases
S.NAGAMUTHU
Negotiable Instrument Act, 1881—Section 138—Dishonour of cheque—Blank cheques—Signing of a blank cheque not amounts to due execution—Due ... execution means to give a cheque in its complete form—Issuance of a blank cheque with signature alone—Presumption of authorisation ... But here in this case, it is the case of the third respondent that the said blank cheque was not issued to the complainant but issued to one Mr. Chellappan for some other #HL_STA....
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