Case Note & Summary
The petitioners, M/s Gold Field Steels Pvt Ltd and Sri Sundareshan, were convicted by the XXI Addl. Chief Metropolitan Magistrate, Bangalore, for the offence under Section 138 of the Negotiable Instruments Act, 1881, for dishonour of a cheque for Rs.1,62,600.98 issued to the respondent, M/s Sanjay Alloys Pvt Ltd. The Trial Court imposed a fine of Rs.1,82,600.98, with default simple imprisonment of six months. The conviction was confirmed by the XXXVI Addl. City Civil and Sessions Judge, Bangalore, in Criminal Appeal No.1753/2006. The petitioners filed a criminal revision petition under Section 401 Cr.P.C. before the High Court of Karnataka. The High Court, after hearing the parties, dismissed the revision petition, holding that the courts below had correctly applied the presumption under Section 139 of the N.I. Act and the petitioners failed to rebut it. The court found no illegality or perversity in the concurrent findings of fact. The revision petition was dismissed, and the conviction and sentence were upheld.
Headnote
A) Negotiable Instruments Act - Dishonour of Cheque - Section 138 - Legally Enforceable Debt - The petitioners were convicted for dishonour of a cheque issued for a sum of Rs.1,62,600.98 towards outstanding dues. The Trial Court and Appellate Court found the cheque was issued for a legally enforceable debt and the presumption under Section 139 of the N.I. Act was not rebutted. Held, the conviction is confirmed. (Paras 1-3)
Issue of Consideration
Whether the conviction of the petitioners under Section 138 of the Negotiable Instruments Act, 1881 for dishonour of a cheque issued for a sum of Rs.1,62,600.98 is sustainable in law.
Final Decision
The High Court dismissed the criminal revision petition, upholding the conviction and sentence imposed by the Trial Court and confirmed by the Appellate Court.
Law Points
- Presumption under Section 139 of Negotiable Instruments Act
- 1881
- Rebuttal of presumption
- Dishonour of cheque for legally enforceable debt
- Section 138 of Negotiable Instruments Act
Case Details
2013 LawText (KAR) (03) 33
T. KRISH for petitioners, YESHU MISHRA for respondent
M/s Gold Field Steels Pvt Ltd and Sri Sundareshan
M/s Sanjay Alloys Pvt Ltd
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Nature of Litigation
Criminal revision petition against conviction under Section 138 of Negotiable Instruments Act, 1881 for cheque dishonour.
Remedy Sought
Petitioners sought to set aside the conviction order dated 9.10.2006 in CC No.20646/97 passed by the XXI Addl. Chief Metropolitan Magistrate, Bangalore, and the judgment dated 14.11.2008 in Crl.Appeal No.1753/2006 passed by the XXXVI Addl. City Civil and Sessions Judge, Bangalore, dismissing the appeal.
Filing Reason
The petitioners were convicted for dishonour of a cheque for Rs.1,62,600.98 issued to the respondent, and the conviction was confirmed in appeal.
Previous Decisions
Trial Court convicted petitioners under Section 138 of N.I. Act and imposed fine of Rs.1,82,600.98 with default simple imprisonment of six months. Appellate Court confirmed the conviction and sentence.
Issues
Whether the conviction under Section 138 of the Negotiable Instruments Act, 1881 is sustainable.
Submissions/Arguments
Petitioners argued that the conviction was not sustainable.
Respondent supported the concurrent findings of the courts below.
Ratio Decidendi
The presumption under Section 139 of the Negotiable Instruments Act, 1881 that the cheque was issued for a legally enforceable debt applies, and the accused failed to rebut it. The concurrent findings of fact by the courts below were not perverse or illegal, warranting no interference in revision.
Judgment Excerpts
The petitioners have been convicted for the offence under Section 138 of N.I. Act for dishonour of the cheque issued by them for a sum of `1,62,600.98ps.
The Trial Court has convicted them. The District Court in appeal has confirmed the conviction and fine of `1,82,600.98ps imposed by the Trial Court and in default to pay the fine amount, to undergo simple imprisonment for a period of six months.
Procedural History
The petitioners were convicted by the XXI Addl. Chief Metropolitan Magistrate, Bangalore, on 9.10.2006 in CC No.20646/97. They appealed to the XXXVI Addl. City Civil and Sessions Judge, Bangalore, which dismissed the appeal on 14.11.2008 in Crl.Appeal No.1753/2006. The petitioners then filed a criminal revision petition under Section 401 Cr.P.C. before the High Court of Karnataka, which was dismissed on 11.3.2013.
Acts & Sections
- Negotiable Instruments Act, 1881: 138, 139
- Code of Criminal Procedure, 1973: 401
