Case Note & Summary
The appellant, Mr. Ashfaq Rasheed Shaik, filed six criminal appeals under Section 378(4) Cr.P.C. against the judgment of acquittal dated 07.06.2018 passed by the VI Additional Small Causes Judge and XXXI Addl. C.M.M., Bengaluru in C.C.Nos.11652/2017, 12227/2017, 13040/2017, 12629/2017, 13047/2017, and 12527/2017. The trial court had acquitted the respondent, Smt. Meena Ullas, of the offence punishable under Section 138 of the Negotiable Instruments Act, 1881. The brief facts are that the respondent is the wife of one Ullas K. The appellant alleged that the respondent issued cheques towards repayment of a loan, which were dishonoured. The trial court acquitted the accused on the ground that the complainant failed to prove the existence of a legally enforceable debt. The High Court, however, held that once the signature and issuance of the cheque are admitted, the presumption under Section 139 of the NI Act arises, and the burden shifts to the accused to rebut the same. The accused failed to rebut the presumption. Therefore, the appeals were allowed, the impugned judgment of acquittal was set aside, and the accused was convicted for the offence under Section 138 of the NI Act. The court directed the accused to pay the cheque amount as compensation within a specified period, failing which she would undergo simple imprisonment.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Presumption under Section 139 - Rebuttal - The trial court acquitted the accused on the ground that the complainant failed to prove the existence of legally enforceable debt. However, the High Court held that once the signature and issuance of cheque are admitted, the presumption under Section 139 arises, and the burden shifts to the accused to rebut the same. The accused failed to rebut the presumption, and the acquittal was set aside. (Paras 2-5)
Issue of Consideration
Whether the trial court was justified in acquitting the accused under Section 138 of the Negotiable Instruments Act, 1881, despite the presumption under Section 139 of the Act.
Final Decision
Appeals allowed. Impugned judgment of acquittal set aside. Accused convicted for offence under Section 138 of NI Act. Accused directed to pay the cheque amount as compensation within a specified period, failing which she shall undergo simple imprisonment.
Law Points
- Presumption under Section 139 NI Act
- Rebuttal of presumption
- Standard of proof in cheque dishonour cases
- Section 138 NI Act
- Section 118 NI Act
