2018 (10) TMI 410 - HC - Indian Laws

Dishonor of Cheque - Section 138 of the Negotiable Instruments Act - judgment of acquittal, recorded by the learned trial Court - appellants/complainants, has concertedly and vigorously contended qua the findings of acquittal, recorded by the learned trial Court standing, not, based on a proper appreciation, by it, of the evidence on record, rather, theirs standing sequelled by gross mis-appreciation, by it, of the material on record - statutory presumption, borne in Section 139, of, the Negotiable Instrument Act. 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. The impugned judgment is quashed and set aside - appeal allowed.

Summary

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

Analysis:
1. The complainant alleged that the accused, a businessman, purchased seed potatoes from him but failed to make the full payment of ?2,72,000. The accused issued a cheque of ?1,92,000 towards the payment, which was dishonored for "stop payment." The complainant led evidence, and the accused pleaded innocence and false implication. The trial court acquitted the accused.

2. The complainant challenged the acquittal, arguing that the trial court misappreciated the evidence. The appellant contended that the findings of acquittal were not based on a proper appreciation of the evidence and sought a reversal of the decision to convict the accused.

3. The respondent issued a cheque against the complainant for the sale price of peas and potatoes. The complainant's evidence, supported by an affidavit, established the transaction. The trial court, however, concluded that the statutory presumption under Section 139 of the Negotiable Instruments Act was rebutted, leading to the acquittal of the accused.

4. The court noted that the trial court failed to evaluate the evidence properly, leading to a perverse or absurd misappreciation. The respondent's attempts to rebut the statutory presumption were deemed insufficient, and the defense's contentions were not supported by substantial evidence.

5. Consequently, the High Court found merit in the appeal and allowed it. The trial court's judgment was quashed, and the accused was directed to appear before the court for sentencing on a specified date.

This detailed analysis covers the issues involved in the appeal against the acquittal under Section 138 of the Negotiable Instruments Act, highlighting the arguments presented by both parties and the court's evaluation of the evidence leading to the decision to set aside the trial court's judgment.