High Court of Karnataka Dismisses Revision Petition in Cheque Bounce Case — Conviction Under Section 138 NI Act Upheld. Presumption of Legally Enforceable Debt Under Sections 118 and 139 NI Act Not Rebutted by Accused.

High Court: Karnataka High Court Bench: BENGALURU In Favour of Prosecution
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Case Note & Summary

The present criminal revision petition was filed by the accused-petitioner, Sri R. Rajappa, challenging the judgment of conviction and order on sentence dated 01-07-2016 passed by the XIX Additional Chief Metropolitan Magistrate, Bengaluru, in C.C.No.26605/2014, and the appellate judgment dated 01-09-2017 passed by the LIX Additional City Civil and Sessions Judge, Bengaluru, in Criminal Appeal No.786/2016, both convicting the petitioner for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881. The complainant-respondent, Sri K. Ashok Rai, alleged that the petitioner had borrowed a loan of Rs.3,00,000/- and issued a cheque for the same amount, which was dishonoured upon presentation. The trial court convicted the petitioner, and the appellate court confirmed the conviction. The petitioner contended that the courts below erred in appreciating the evidence and that the presumption under Sections 118 and 139 of the N.I. Act was rebutted. The High Court, after hearing both sides, held that the concurrent findings of fact were based on proper appreciation of evidence and that the petitioner failed to rebut the presumption of a legally enforceable debt. The revision petition was dismissed, upholding the conviction and sentence.

Headnote

A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Presumption of Legally Enforceable Debt - The accused was convicted for dishonour of a cheque issued towards repayment of a loan. The courts below held that the presumption under Sections 118 and 139 of the N.I. Act that the cheque was issued for a legally enforceable debt stood unrebutted. The revision petition challenging the concurrent findings was dismissed as no perversity or illegality was found. (Paras 1-10)

B) Criminal Procedure Code - Revision - Section 397 - Scope of Interference - The revisional court's jurisdiction is limited to examining the legality, correctness, or propriety of the findings. Concurrent findings of fact cannot be interfered with unless they are perverse or based on no evidence. The High Court found no such infirmity. (Paras 1-10)

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Issue of Consideration

Whether the concurrent findings of conviction under Section 138 of the Negotiable Instruments Act, 1881, are perverse or illegal warranting interference in revision.

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Final Decision

The High Court dismissed the criminal revision petition, upholding the conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881.

Law Points

  • Presumption of legally enforceable debt under Sections 118 and 139 of Negotiable Instruments Act
  • 1881
  • Rebuttal of presumption by accused
  • Standard of proof in cheque dishonour cases
  • Concurrent findings of fact not interfered in revision
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Case Details

2021 LawText (KAR) (06) 42

Criminal Revision Petition No.1008 of 2017

2021-06-11

Dr. Justice H.B. Prabhakara Sastry

Sri. Kiran Kumar D.K. for petitioner, Sri. K. Chadranath Ariga for respondent

Sri. R. Rajappa

Sri. K. Ashok Rai

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Nature of Litigation

Criminal revision petition against conviction under Section 138 of Negotiable Instruments Act, 1881

Remedy Sought

Petitioner sought to set aside the conviction and sentence imposed by the trial court and confirmed by the appellate court

Filing Reason

Petitioner was convicted for dishonour of cheque issued towards repayment of loan

Previous Decisions

Trial court convicted the accused on 01-07-2016; appellate court dismissed the appeal on 01-09-2017

Issues

Whether the concurrent findings of conviction under Section 138 NI Act are perverse or illegal? Whether the presumption under Sections 118 and 139 NI Act was rebutted by the accused?

Submissions/Arguments

Petitioner argued that the courts below erred in appreciating evidence and that the presumption was rebutted. Respondent supported the concurrent findings and argued that the revision petition lacked merit.

Ratio Decidendi

The presumption under Sections 118 and 139 of the Negotiable Instruments Act, 1881, that a cheque was issued for a legally enforceable debt, stands unless rebutted by the accused. The accused failed to rebut the presumption, and the concurrent findings of fact were not perverse or illegal, hence no interference in revision.

Judgment Excerpts

The present petitioner as the accused was tried by the Court of the learned XIX Additional Chief Metropolitan Magistrate at Bangalore City ... in C.C.No.26605/2014 for the offence punishable under Section 138 of the Negotiable Instruments Act, 1881 and was convicted for the said offence by its judgment of conviction and order on sentence dated 01-07-2016. The Sessions Judge’s Court in its order dated 01-09-2017 dismissed the appeal, confirming the judgment of conviction and order on sentence passed by the Trial Court dated 01-07-2016.

Procedural History

The petitioner was tried and convicted by the XIX Additional Chief Metropolitan Magistrate, Bengaluru, on 01-07-2016. He appealed to the LIX Additional City Civil and Sessions Judge, Bengaluru, which dismissed the appeal on 01-09-2017. The petitioner then filed the present criminal revision petition under Section 397 Cr.P.C. before the High Court of Karnataka.

Acts & Sections

  • Negotiable Instruments Act, 1881: 138, 118, 139
  • Code of Criminal Procedure, 1973: 397
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High Court High Court of Karnataka Dismisses Revision Petition in Cheque Bounce Case — Conviction Under Section 138 NI Act Upheld. Presumption of Legally Enforceable Debt Under Sections 118 and 139 NI Act Not Rebutted by Accused.
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