455.
(UK HC) 03-03-2021
A. Negotiable Instruments Act, 1881 (26 of 1881), Section 138 – Cheque bounce complaint -- Following ingredients are required to be satisfied for making out a case under Section 138 of the Act, 1881:
(i) that a person must have drawn a cheque on an account maintained by him in a bank for payment of a certain amount of money to another person from out of that account for the discharge of any legally enforceable debt or other liability;
(ii) that cheque has been presented to the bank within a period of six months from the date on which it is drawn or within the period of its validity, whichever is earlier;
(iii) that cheque is returned by the bank unpaid, either because the amount of money standing to the credit of the account is insufficient to honour the cheque or that it exceeds the amount arranged to be paid from that account by an agreement made with the bank;
(iv) the payee or the holder in due course of the cheque makes a demand for the payment of the said amount of money by giving a notice in writing, to the drawer of the cheque, within thirty days of the receipt of information by him from the bank regarding the return of the cheque as unpaid;
(v) the drawer of such cheque fails to make payment of the said amount of money to the payee or the holder in due course of the cheque within 15 days of the receipt of the said notice.
(Para 7)
B. Negotiable Instruments Act, 1881 (26 of 1881), Section 138 – Cheque bounce complaint – Legally enforceable debt or liability -- Presumption – Rebuttal -- Once a cheque has been signed and issued in favour of the holder, there is statutory presumption that it is issued in discharge of a legally enforceable debt or liability -- However, this presumption is a rebuttable one -- If the accused will able to raise a probable defence which creates doubts about the existence of a legally enforceable debt or liability, the prosecution can fail -- Onus is upon the accused to rebut the presumption and to establish that the cheque in question was not given in respect of any debt or liability, however, for which it is not necessary for the accused to disprove the existence of consideration by way of direct evidence, even the evidence adduced on behalf of the complainant can be relied upon.
(Para 23)
C. Negotiable Instruments Act, 1881 (26 of 1881), Section 138 – Code of Criminal Procedure, 1973 (2 of 1974), Section 313 -- Cheque bounce complaint – Legally enforceable debt or liability -- Presumption – Rebuttal -- Respondent-accused denied his signature on the cheque -- Accused has not led any evidence in support of this plea -- Accused even did not come in the witness box to support his case -- Statement of the accused u/s 313 of the Code of Criminal Procedure is not a substantive evidence of defence of the accused but only an opportunity to the accused to explain the incriminating circumstances appearing in the prosecution case -- Mere statement of the accused may not be sufficient to rebut the presumption.
(Para 24, 25)
D. Negotiable Instruments Act, 1881 (26 of 1881), Section 138 – Code of Criminal Procedure, 1973 (2 of 1974), Section 378(4) – Acquittal – Leave to appeal -- Complaint against partner -- Partnership Firm not arrayed as accused – Effect of -- For the purpose of Section 141 of the Act, 1881, a firm comes within the ambit of a company – Cheque had been issued by the firm which was subsequently dishonoured, a partner of the firm would not be liable for prosecution u/s 138 of the Act, 1881 without the firm being arraigned as an accused – Ld. Trail court acquitted the accused -- Appeal, by special leave, preferred by the appellant-complainant dismissed.
(Para 1, 30-34)