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2021 (11) TMI 444 - HC - Indian Laws


Issues:
- Appeal against the reversal of conviction under Section 138 of the Negotiable Instruments Act.
- Dispute over the existence of a legally enforceable debt between the complainant and the accused.

Analysis:
1. The appellant, a private complainant, filed a complaint under Section 138 of the Negotiable Instruments Act against the accused for a dishonored cheque. The accused was convicted by the Metropolitan Magistrate but later acquitted by the Sessions Court. The appeal challenges this acquittal.

2. The defense claimed that the cheques were given as security in a business transaction and were not meant for payment. The accused, being the proprietor of the Firm, argued that the complaint was not maintainable. However, the Court held that the complainant was entitled to the presumption under Section 138, which the accused needed to rebut.

3. The defense contended that the cheques were handed over as security to the complainant's husband, who then passed them on. The accused argued that the complaint was initiated at the behest of the husband. The complainant, in her testimony, detailed the amounts owed and the issuance of the cheques, including interest amounts.

4. The Court noted discrepancies in the complainant's testimony, such as the lack of production of company accounts to prove the debt and interest calculations. The complainant's lack of awareness of business transactions and failure to provide evidence supporting the debt weakened the case.

5. The Court found that the complainant failed to prove the existence of a legally enforceable debt, especially in the absence of concrete evidence and proper documentation. As a result, the appeal was dismissed, confirming the lower court's decision to acquit the accused based on the lack of evidence supporting the debt claim.

6. The judgment emphasized the importance of establishing a legally enforceable debt in cases under Section 138 of the Negotiable Instruments Act. Without sufficient evidence and documentation, the burden of proof falls on the complainant, and failure to substantiate the claim can lead to an acquittal, as seen in this case.

 

 

 

 

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