High Court of Karnataka Upholds Conviction in Cheque Dishonour Case — Presentation Beyond Agreed Period Not a Bar Under Section 138 of Negotiable Instruments Act, 1881. The court held that the cheque was presented within its validity period and the accused failed to rebut the presumption of legally enforceable debt.

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

The case arises from a complaint under Section 138 of the Negotiable Instruments Act, 1881. The complainant, P.S. Poovaiah, alleged that the accused, P.K. Bopanna, borrowed Rs. 1,50,000 and issued a post-dated cheque dated 13.06.2018, agreeing to repay within 15 days. The complainant did not present the cheque immediately but presented it on 05.12.2018, when it was dishonoured due to insufficient funds. A legal notice was issued, but the accused did not reply. The Trial Court convicted the accused, and the Appellate Court confirmed the conviction. The accused filed a revision petition before the High Court. The main contention was that the cheque was not presented within the agreed 15-day period. The High Court held that Section 138 does not require presentation within any agreed period; it only requires presentation within the validity period of the cheque. Since the cheque was presented within six months from its date, the presentation was valid. The court also noted that the accused failed to rebut the presumption under Section 139. The concurrent findings of fact were not perverse, and the revision was dismissed.

Headnote

A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Presentation of Cheque - The complainant presented the cheque on 05.12.2018, which was dated 13.06.2018, i.e., within six months from the date of the cheque. The accused contended that the cheque was not presented within 15 days as agreed. The court held that there is no requirement under Section 138 that the cheque must be presented within the period agreed between the parties; it is sufficient if presented within its validity period. The conviction was upheld. (Paras 3-5)

B) Criminal Procedure - Revision - Scope - Section 438 BNSS - The revision petition challenged concurrent findings of fact. The court held that in revision, it cannot re-appreciate evidence unless there is a perversity or illegality. No such error was found, and the petition was dismissed. (Para 5)

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Issue of Consideration

Whether the conviction under Section 138 of the Negotiable Instruments Act, 1881 is sustainable when the cheque was presented beyond the period agreed between the parties but within the validity period of the cheque?

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Final Decision

The revision petition is dismissed. The judgments of the Trial Court and Appellate Court are confirmed. The conviction under Section 138 of the Negotiable Instruments Act, 1881 is upheld.

Law Points

  • Section 138 Negotiable Instruments Act
  • 1881
  • presentation of cheque within validity period
  • dishonour due to insufficient funds
  • presumption under Section 139
  • failure to reply to legal notice
  • concurrent findings of fact
  • scope of revision under Section 438 BNSS
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Case Details

2026 LawText (KAR) (06) 62

CRL.RP No. 411 of 2026

2026-06-23

H.P.Sandesh

Sri Vinod Kumar M

Sri P K Bopanna

Sri P S Poovaiah

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Nature of Litigation

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

Remedy Sought

Petitioner (accused) sought to set aside the judgments of the Trial Court and Appellate Court convicting him for cheque dishonour

Filing Reason

The petitioner was convicted for dishonour of a cheque issued for repayment of a loan of Rs. 1,50,000

Previous Decisions

Trial Court convicted the accused in C.C.No.444/2019 on 28.06.2023; Appellate Court confirmed the conviction in Crl.A.No.62/2023 on 17.02.2026

Issues

Whether the cheque was presented within the validity period under Section 138 of the NI Act? Whether the failure to present the cheque within the agreed 15-day period vitiates the prosecution? Whether the concurrent findings of fact are perverse or illegal?

Submissions/Arguments

Petitioner argued that the cheque was not presented within 15 days as agreed, and therefore the prosecution is not maintainable. Respondent (complainant) contended that the cheque was presented within its validity period and the accused failed to reply to the legal notice.

Ratio Decidendi

Under Section 138 of the Negotiable Instruments Act, 1881, a cheque must be presented within its validity period (six months from the date of the cheque). There is no requirement that the cheque be presented within any period agreed between the parties. The presumption under Section 139 of the Act applies, and the accused failed to rebut it. Concurrent findings of fact cannot be interfered with in revision unless perverse.

Judgment Excerpts

The case of the complainant before the Trial Court is that the complainant and the accused were well known to each other since several years. The complainant presented the said Cheque and the same was dishonoured as 'funds insufficient'. Hence, issue the legal notice but the accused failed to reply.

Procedural History

The complainant filed a complaint under Section 138 of the NI Act in C.C.No.444/2019. The Trial Court convicted the accused on 28.06.2023. The accused appealed to the Sessions Court in Crl.A.No.62/2023, which was dismissed on 17.02.2026. The accused then filed the present revision petition under Section 438 r/w 442 of BNSS before the High Court.

Acts & Sections

  • Negotiable Instruments Act, 1881: 138, 139
  • Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS): 438, 442
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