Case Note & Summary
The case involved an appeal against a judgment by the High Court of Himachal Pradesh, which convicted the appellant under Section 138 of the Negotiable Instruments Act, 1881, after reversing a trial court's acquittal. The appellant had purchased nonwoven fabric from the complainant, issuing two cheques in payment, which were later dishonoured due to insufficient funds. The complainant sent legal notices, which the appellant ignored, leading to the filing of complaints under Section 138. The trial court acquitted the appellant, finding that the complainant did not prove delivery of goods. However, the High Court found that the complainant had established the issuance of cheques in relation to the goods supplied, and the appellant failed to provide evidence to rebut the presumption of consideration under Section 139. The court noted that the appellant's statement under Section 313 of the Code of Criminal Procedure was not substantive evidence. The Supreme Court upheld the High Court's decision, emphasizing the quasicriminal nature of proceedings under Section 138 and the burden of proof on the accused to rebut the presumption. The appeals were dismissed, and the appellant was ordered to pay the fine or serve the sentence as per the High Court's judgment.
Headnote
A) Negotiable Instruments - Dishonour of Cheque - Offence under Section 138 - Burden of Proof - The High Court affirmed the trial court's reversal of acquittal, holding that the complainant discharged the burden of proof that the cheques were issued in lieu of goods supplied, and the appellant failed to rebut the presumption under Section 139. The court emphasized that the appellant's mere denial was insufficient to discharge the burden of proof (Paras 7-12).
Issue of Consideration
Whether the appellant was guilty of the offence under Section 138 of the Negotiable Instruments Act, 1881.
Final Decision
The Supreme Court dismissed the appeals, upholding the High Court's conviction of the appellant under Section 138 of the Negotiable Instruments Act, 1881, and ordered compliance with the High Court's judgment regarding payment of fine or serving the sentence.
Law Points
- Negotiable Instruments Act
- 1881
- Section 138
- Section 139
- Code of Criminal Procedure
- 1973
- Section 313
- presumption of consideration
- burden of proof
- quasicriminal nature of proceedings
