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2021 (2) TMI 199 - HC - Indian Laws


Issues Involved:
1. Whether the accused-respondent issued the cheques in question in discharge of a legally enforceable debt or liability.
2. Whether the complainant-appellant successfully proved the case beyond a reasonable doubt.
3. Whether the presumption under Sections 138 and 139 of the Negotiable Instruments Act was rebutted by the accused-respondent.

Issue-wise Detailed Analysis:

1. Legally Enforceable Debt or Liability:
The complainant-appellant and the accused-respondent were professional contractors who executed a government work under the license of a third party. The complainant alleged that the accused owed him ?9,79,294, part of which was paid by cheque. The remaining amount was to be paid via two post-dated cheques, which were dishonored due to the account being closed. The complainant filed a case under Section 138 of the Negotiable Instruments Act, 1881, seeking remedy for the dishonored cheques.

2. Proof Beyond Reasonable Doubt:
The trial court found that the complainant failed to prove his case beyond a reasonable doubt. The complainant did not provide sufficient documentary evidence to prove the existence of a legally enforceable debt. Key witnesses, including Suman Bhattacharjee, in whose name the work was executed, were not produced. The complainant also failed to produce any documents to show his source of income or capital investment, which further weakened his case.

3. Rebuttal of Presumption under Sections 138 and 139:
The accused-respondent denied issuing the cheques and claimed that the signatures were not his. The trial court noted that the presumption under Sections 138 and 139 is rebuttable. The accused-respondent successfully rebutted the presumption by highlighting the lack of evidence from the complainant. The court emphasized that the mere fact of issuing and dishonoring a cheque is insufficient for criminal liability under Section 138 unless it is proven that the cheque was issued to discharge a legally enforceable debt.

Conclusion:
The appellate court upheld the trial court's judgment, affirming the acquittal of the accused-respondent. The court concluded that the complainant failed to establish the existence of a legally enforceable debt and the accused successfully rebutted the presumption under Sections 138 and 139 of the Negotiable Instruments Act. Consequently, the appeal was dismissed, and the trial court's judgment was affirmed.

 

 

 

 

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