2022 (6) TMI 199 - HC - Indian Laws

Dishonor of Cheque - misuse of blank signed cheque of the petitioner - Section 138 of the Act of 1881 - HELD THAT - With respect to the defence raised by the petitioner of blank signed cheque being misused, on suggestion put to CW1 as well as defence in statement recorded under Section 313 Cr.P.C. are not in consonance with evidence of DW2- Jitender Singh. It was observed that the suggestion given to CW1 was to the effect that by pressurizing DW2-Jitender Singh, the complainant had taken cheque of the petitioner and then filled the amount of Rs.5,00,000/- on his own and misused the same. It was further noticed that on the other hand, when DW2 was examined, he had stated that he alongwith complainant came to the house of the present petitioner and the petitioner was not present in the house and in his absence, the complainant took away two blank signed cheques of his brother including the cheque in question from the almirah of his brother i.e. Surender and it is the said cheque which has been misused. It was observed that version given by the DW2 to the effect that theft had been committed from almirah of the house was not mentioned in statement recorded under Section 313 Cr.P.C. nor suggested to CW1 in his cross-examination. The Hon'ble Supreme Court of India in a case titled as BIR SINGH VERSUS MUKESH KUMAR 2019 (2) TMI 547 - SUPREME COURT , had held that the Court shall presume the liability of the drawer of the cheques for the amount for which the cheques are drawn. Even in the aforesaid case, the cheque was a signed blank cheque which had been subsequently filled up by the complainant. The Hon'ble Supreme Court in the said case had also held that the revisional Court should not interfere in the absence of jurisdictional error - In the said case, it has been held that the Revisional Court is not to interfere in the absence of jurisdictional error. In the present case, it is admitted case of the petitioner himself that the signatures on the cheque are his and his only defence to the effect that a blank signed cheque was kept by him has been held to be a concocted defence. The present Criminal Revision being sans merit, is accordingly dismissed.

Summary

Issues:
Challenge to conviction under Section 138 of the Negotiable Instruments Act, 1881 based on misuse of blank signed cheque and lack of liability.

Analysis:
The petitioner challenged the judgment convicting him under Section 138 of the Act based on misuse of a blank signed cheque. The Appellate Court found that the necessary ingredients under Section 138 were met, invoking the presumption under Section 139. The complainant testified to lending money to the petitioner for a fruit business, supported by evidence of the cheque, return memo, legal notice, and account statements. The defense of misuse was contradicted by the petitioner's brother's statement, which lacked corroboration and credibility. The courts held the petitioner liable, as per the statutory presumption under the Act.

The judgment referenced the Supreme Court's ruling in "Bir Singh vs. Mukesh Kumar," emphasizing the presumption of liability under Sections 138 and 139 of the Act. The Court highlighted that the burden to rebut this presumption lies with the accused. Even if a cheque is post-dated or filled by someone other than the drawer, the penal consequences of Section 138 apply if duly signed. The Court reiterated that a signed blank cheque, voluntarily presented for payment, attracts the presumption under Section 139 unless evidence proves otherwise. The judgment emphasized the importance of adducing evidence to rebut the presumption of debt or liability associated with the cheque.

Ultimately, the Court dismissed the Criminal Revision, deeming it meritless due to the petitioner's admitted signatures on the cheque and the concocted nature of his defense. The judgment reinforced the principle that the Revisional Court should not interfere without a jurisdictional error. Consequently, the application for suspension of the petitioner's sentence was rendered infructuous. All pending miscellaneous applications were disposed of in light of the judgment, concluding the legal proceedings related to the case.