2016 (8) TMI 1553 - HC - Indian Laws

Dishonor of Cheque - insufficiency of funds - misuse of blank cheque - HELD THAT - The arguments of the learned counsel for the revision petitioner, that the petitioner issued blank cheque to one Perumal was misused by the complainant and foisted criminal case is liable to be rejected. The complainant has sufficient funds to give money under the disputed cheque and this Court is of the view that the cheque was issued for consideration by the present revision petitioner to the complainant. On entire perusal of the records, this Court finds no illegality or infirmity in the order passed by the Court below and the same does not warrant any interference by this Court. The criminal revision stands dismissed.

Summary

Issues:
Conviction under Section 138 of the Negotiable Instruments Act, Misuse of blank cheque, Failure to prove issuance of cheque to Perumal, Contradictions in evidence, Presumption under section 139 of the Negotiable Instruments Act.

Analysis:
The case involves a criminal revision petition challenging a judgment of conviction and sentence under Section 138 of the Negotiable Instruments Act. The petitioner borrowed a sum and issued a cheque which was dishonored twice due to insufficient funds. The petitioner argued that the cheque was not presented within the prescribed time and that the complainant failed to prove the borrowing of the sum. The petitioner contended that the blank cheque was signed without consideration and was misused by the complainant, urging the dismissal of the case. The respondent, on the other hand, argued that the trial court's decision was correct, emphasizing the petitioner's admission regarding the issuance of the cheque. The court examined the evidence, including the petitioner's failure to prove the issuance of the cheque to Perumal and the contradictions in the evidence presented.

The petitioner admitted the signature on the dishonored cheque but failed to provide sufficient evidence that it was issued to Perumal. The court rejected the argument that the blank cheque was misused, as the petitioner could not substantiate the claim. Additionally, the petitioner's contention regarding the complainant's source of funds was dismissed, as the evidence did not support the claim. The court highlighted the presumption under section 139 of the Negotiable Instruments Act, placing the burden on the accused to rebut it. The court also addressed discrepancies in the names mentioned in the complaint and evidence presented.

The court analyzed the petitioner's submission regarding the issuance of the cheque to Perumal, noting inconsistencies in the evidence and the lack of examination of key witnesses. The court dismissed the petitioner's reliance on certain notices and records, deeming them created for the case. The court referenced a judgment that was deemed inapplicable to the present case. The respondent cited relevant judgments to support their contention, emphasizing the sufficiency of funds with the complainant and the consideration behind the issuance of the cheque by the petitioner.

Ultimately, the court upheld the lower courts' decisions, dismissing the criminal revision petition. The court found no illegality or infirmity in the orders passed by the lower courts and concluded that the cheque was issued for consideration. The judgment highlights the importance of substantiating claims, addressing contradictions in evidence, and the burden of proof in cases under the Negotiable Instruments Act.