2018 (10) TMI 106 - HC - Indian Laws

Dishonor of Cheque - offence punishable under Section 138 of the Act - acquittal of accused - Principles of Natural Justice - Held that - This Court holds that the learned trial Court has not appraised the entire evidence on record in a wholesome and harmonious manner and the analysis of the learned trial Court hence suffers from a perversity or absurdity of mis-appreciation and non-appreciation of evidence on record. There is merit in the appeal, and the same is allowed. The impugned judgment is quashed and set aside. The accused/respondent be produced before this Court, for his being heard on quantum of sentence, on 22.10.2018.

Summary

Issues:
1. Appeal against acquittal under Section 138 of the Negotiable Instruments Act.

Analysis:
The appeal was directed against the verdict of acquittal by the Chief Judicial Magistrate in a criminal case under Section 138 of the Negotiable Instruments Act. The complainant, an agriculturist, sold seed potatoes to the accused, a businessman, who issued a cheque that was dishonored. The complainant sought payment through legal notice, leading to the trial magistrate summoning the accused. The trial court acquitted the accused after examining witnesses and the accused's defense statement.

The complainant challenged the acquittal, arguing that the trial court misappreciated the evidence. The appellant contended that the findings of acquittal should be reversed, and a conviction should be pronounced. On the other hand, the respondent's counsel defended the acquittal, claiming it was based on a balanced appreciation of the evidence and should not be interfered with.

The High Court evaluated the evidence, focusing on the issuance of the cheque by the accused to the complainant. The cheque was issued against a specific account for the purchase of peas and potatoes. The complainant's testimony and cross-examination indicated the transaction details and delivery of goods. The court discussed the presumption in favor of the holder under Section 139 of the Act, emphasizing the statutory right of the holder unless rebutted by cogent evidence.

The court found that the trial court failed to properly analyze the evidence, leading to a flawed conclusion of acquittal. The respondent's attempts to rebut the statutory presumption were deemed insufficient, including allegations of a false complaint. The lack of expert opinion on handwriting and signatures on the cheque further weakened the respondent's defense. Consequently, the High Court held that the appeal had merit, quashed the acquittal judgment, and scheduled a hearing for the quantum of sentence for the accused.

In conclusion, the High Court's detailed analysis highlighted the misappreciation of evidence by the trial court, the significance of statutory presumptions, and the insufficiency of the respondent's defense. The decision to allow the appeal and set aside the acquittal demonstrated a thorough review of the legal and factual aspects of the case.