Cheque bounce case -- Advocate Client relationship – Complaint u/s 138 of NI Act -- Mere issuance of cheque by the client may not debar him from contesting the liability -- If liability is disputed, the advocate has to independently prove the contract.

(SC) Decided on: 05.12.2017

Cheque bounce case -- Issuance of cheque by client as percentage – Dishonour of – Complaint u/s 138 of NI Act – Maintainability of -- Claim based on percentage of subject matter in litigation cannot be the basis of a complaint u/s 138 of the Act -- Claim of the respondent advocate being against public policy and being an act of professional misconduct, proceedings in the complaint filed by him have to be held to be abuse of the process of law and have to be quashed -- Issue of professional misconduct is left to be dealt with at the appropriate forum.

(SC) Decided on: 05.12.2017

Presumption of consideration -- Accused had already admitted his signatures and date put by him -- Story that the accused had misplaced the cheque was a false defence -- Accused was not able to raise even a probable defence and the statutory presumption comes into play -- So far as the security cheque is concerned, the law is clear that it is an acknowledgment of liability on the part of the drawer that the cheque holder may use the security as an alternate mode of discharging his liability -- Complainant was only supposed to prove that the cheque issued by the respondent was dishonored -- Onus had shifted upon the respondent when he admitted his signatures and it was for him to explain -- Order of acquittal is set aside and the accused is convicted for four months.

(P&H HC) Decided on: 21.12.2015