2018 (8) TMI 2018 - DSC - Indian Laws

Dishonor of Cheque - enforceable debt or not - fine payable as compensation to the respondent company as per provisions of Section 143(1) (Provisio) of NI Act r/w Section 357(1)(3) of Cr.P.C - HELD THAT - This court is of the considered opinion that three cheques in question, qua this matter, were issued by appellant in favour of respondent side towards legally enforeable debt, due to respondent side. In the further considered view of this court, Ld. Trial Court correctly appreciated the facts and circumstances of this case in the right perspective before coming to the conclusion that the appellant was liable for commission of offence under section 138 of NI Act. The appellant did not produce relevant/satisfactory evidence before Ld. Trial Court in support of the fact that he was not responsible towards respondent side for any amount of money qua this matter as per relevant provisions of NI Act. There is no merit in this appeal so as to set aside or modify, to any extent, the impugned judgment of conviction and the same is hereby upheld - Appeal dismissed.

Summary

Issues: Appeal against conviction under section 138 of NI Act and challenge to the order on point of sentence.

Analysis:
1. The appellant challenged the judgment of conviction under section 138 of the Negotiable Instruments Act, 1881, and the order on point of sentence. The appellant argued that the Trial Court did not properly appreciate the facts and circumstances of the case, and there was no legally enforceable debt against him. The appellant contended that the Trial Court did not correctly interpret sections 138 and 139 of the NI Act, seeking acquittal.

2. The respondent opposed the appeal orally, emphasizing that the Trial Court correctly assessed the facts and circumstances. The respondent argued that the cheques issued by the appellant were towards a legally enforceable liability, and upon dishonor, the Trial Court's decision was justified. The respondent urged the Court to dismiss the appeal with costs.

3. After hearing both parties and examining the judicial record, the Court found that the cheques were issued by the appellant towards a legally enforceable debt to the respondent. The Court held that the Trial Court correctly evaluated the case and concluded that the appellant was liable under section 138 of the NI Act. The appellant failed to provide satisfactory evidence to refute his liability as per the relevant provisions of the NI Act.

4. The Court upheld the judgment of conviction and the order on the point of sentence. It determined that there was no merit in the appeal to set aside or modify the Trial Court's decision. The Court considered the punishment of imprisonment and the compensation amount fair and reasonable in the given circumstances. The Court found no grounds to interfere with the Trial Court's decision.

5. Consequently, the appeal petition was dismissed for lacking merit, and any interim protection granted to the appellant was withdrawn. Both parties were directed to appear before the Trial Court for further proceedings. The Trial Court was instructed to proceed with the matter according to the law. The appeal petition file was to be sent back to the Trial Court for necessary action and formalities.