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2021 (11) TMI 586

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..... anian [ 2021 (2) TMI 505 - SUPREME COURT ] has held that once signature is established, it is to be presumed that the cheque was issued in consideration for a legally enforceable debt. At any rate, the complainant has chosen to produce the statement of accounts showing the transaction between the complainant and the accused as well as the resolution authorising PW1 to represent the company - this is a fit case where an opportunity has to be granted to the complainant to prove the said documents in order to prove its case. Hence, the impugned judgment is liable to be set aside and the matter is to be remanded to the court below for fresh disposal. Appeal allowed by way of remand. - Crl. A. No. 1492 of 2012 - - - Dated:- 10-8-2021 - Dr .....

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..... l the accused appeared before the court below. When the particulars of the invoice were read over and explained to them, they pleaded not guilty. 3. Before the court below, the Branch Head of Area Sales Office of the company was examined as PW1 and Exts. P1 to P12 series were marked. On the side of the defence, one witness was examined as DW1 and Exts. D1 to D6 were marked. After trial, the court below found that the accused are not guilty and accordingly they were acquitted u/s. 255(1) of Cr.P.C. as per the impugned judgment. Challenging the said judgment, the appellant has preferred this appeal. 4. Even though notice has been served to the accused, there is no appearance. Heard Sri. A.V.M. Salahuddeen, the learned counsel for the ap .....

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..... ccount relating to the transaction between it and the accused. It has also come out in evidence that a sum of ₹ 7,10,000/- was received by the complainant from the first accused as security at the time of giving dealership. According to PW1, the said amount was adjusted towards the liability of the accused. PW1 admitted that there are documents to show the adjustment of the said amount. But the said document has also not been produced. 6. The accused have admitted the signature in the cheque. But their case is that the cheques were issued in blank as security which were misused by the complainant company. In the absence of the document showing the business transaction between the complainant and the accused pertaining to the issuan .....

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..... on of the complainant company authorising PW1 to represent the company. 9. I have perused these documents and I am of the view that these documents are very relevant to prove the case of the complainant. When the cheque is issued, there is a presumption under Sections 118 and 139 of the Act that it was drawn for consideration. It is settled that when the accused admits the signature in the cheque and takes a plea that it was issued as security, the burden is upon him to establish the same. The Apex Court in Kalamani Textiles (M/s.) Another v. P. Balasubramanian (2021 (2) KHC 517) has held that once signature is established, it is to be presumed that the cheque was issued in consideration for a legally enforceable debt. At any rate, the .....

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