Cheque Dishonour | Onus On Accused To Prove Cheque Issued Towards Repayment Of Loan Was Misused By Complainant: Karnataka High Court
1 year, 3 months ago

Cheque Dishonour | Onus On Accused To Prove Cheque Issued Towards Repayment Of Loan Was Misused By Complainant: Karnataka High Court

Live Law  

The Karnataka High Court has held that in a cheque bounce case, the onus is on the accused to prove that the cheque was misused after it was issued to another person in lieu of a loan borrowed from them and thus did not amount to a legally enforceable debt. The primary contention of the accused was that the complainant failed to prove beyond reasonable doubt that the cheque was issued towards legally enforceable debt or liability to attract Section 138 of the Act. "The accused never made any efforts to examine the mother of the complainant and he has not placed any material to show that the cheque was not issued towards legally enforceable debt. On the contrary, the complainant has proved that the cheque was issued by the accused towards the discharge of legally enforceable debt i.e., towards hand loan received by him.

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History of this topic

Cheque Dishonour: Rajasthan High Court Sets Aside Conviction After Compromise, But Imposes 15% Cost On Drawer Citing Failed Appeal
2 months, 2 weeks ago

Cheque Dishonour: Rajasthan High Court Sets Aside Conviction After Compromise, But Imposes 15% Cost On Drawer Citing Failed Appeal

Live Law  

Rajasthan High Court set aside conviction and sentence in a cheque dishonour case in light of settlement reached between the parties while imposing a cost of 15% of the cheque value on the petitioner since the compromise was reached at after rejection of appeal filed by the convict and pending revision petition. The bench of Justice Manoj Kumar Garg was …

Complainant's Burden Shifting Under Section 139 of the Negotiable Instruments Act: High Court Observation
4 months, 3 weeks ago

Complainant's Burden Shifting Under Section 139 of the Negotiable Instruments Act: High Court Observation

Live Law  

The Jammu and Kashmir and Ladakh High Court has observed that once the complainant proves that a cheque was issued by the accused to discharge a debt, Section 139 mandates that the burden of proof shifts to the accused. The court dismissed an appeal filed by one Choudhary Piara Singh against an acquittal order issued by the Trial Court in …

High Court Rejects Plea to Dismiss Cheque Bounce Complaint
4 months, 3 weeks ago

High Court Rejects Plea to Dismiss Cheque Bounce Complaint

Live Law  

The Karnataka High Court has ruled that a complaint for an offence punishable under Section 138 of the Negotiable Instruments Act would be maintainable, even if a civil suit for recovery of the money is instituted. The court relied on the Apex court judgment in the case of D.PURUSHOTAMA REDDY v. K.SATEESH, (2008) 8 SCC 505, which held that two …

Discharge Of Debt By Drawer To Be Determined At Trial, Can't Be Ground For Quashing Cheque Bounce Case U/S 138 NI Act: Jharkhand HC
8 months, 2 weeks ago

Discharge Of Debt By Drawer To Be Determined At Trial, Can't Be Ground For Quashing Cheque Bounce Case U/S 138 NI Act: Jharkhand HC

Live Law  

The Jharkhand High Court has dismissed a petition to quash a cheque bounce case, emphasizing that determining whether the petitioner had settled the debt for which the cheques were issued is a factual matter requiring a full trial. Justice Anil Kumar Choudhary, presiding over the case, observed, “Now whether or not the petitioner has discharged the debt for which the …

[Cheque Dishonour] Complainant Failed To Prove Cheque Was Issued Against Legally Enforceable Debt: Kerala High Court Acquits Accused
1 year ago

[Cheque Dishonour] Complainant Failed To Prove Cheque Was Issued Against Legally Enforceable Debt: Kerala High Court Acquits Accused

Live Law  

The Kerala High Court has held that a complainant under the Negotiable Instruments Act cannot rely on the presumption that the holder of a negotiable instrument has paid consideration for it when his claim is inconsistent.It upheld the acquittal of the accused upon noting that the complainant in the present case had failed to prove that the cheque had been …

[S.138 NI Act] Must Examine Those With Direct Knowledge Of Transaction To Prove Allegations Of Cheque Dishonour: Kerala High Court Sets Aside Conviction
1 year, 1 month ago

[S.138 NI Act] Must Examine Those With Direct Knowledge Of Transaction To Prove Allegations Of Cheque Dishonour: Kerala High Court Sets Aside Conviction

Live Law  

The Kerala High Court has stated that the prosecution has to examine a witness who had direct knowledge regarding the transaction, issuance and execution of the cheque to prove dishonour of the cheque. Justice A. Badharudeen observed that the examination of a witness who had no direct knowledge regarding the transaction or issuance of the cheque would be insufficient to …

S.138 NI Act | Single Complaint For Dishonour Of Multiple Cheques Issued Qua Same Transaction Maintainable: Karnataka High Court
1 year, 1 month ago

S.138 NI Act | Single Complaint For Dishonour Of Multiple Cheques Issued Qua Same Transaction Maintainable: Karnataka High Court

Live Law  

The Karnataka High Court has held that a single complaint made under Section 138 of the Negotiable Instruments Act, is maintainable for multiple cheques issued by the respondent/accused on the same cause of action. A single judge bench of Justice K Natarajan allowed the petition filed by complainant A Adinarayana Reddy and set aside the order dismissing the complaint filed …

Cheque Dishonour | Wife Not Signatory, Cannot Be Held Liable For Cheque Signed & Given By Husband From Joint Account: Bombay High Court
1 year, 3 months ago

Cheque Dishonour | Wife Not Signatory, Cannot Be Held Liable For Cheque Signed & Given By Husband From Joint Account: Bombay High Court

Live Law  

The Bombay High Court recently quashed and set aside process and summons issued to a woman by the Magistrate's court in a cheque bounce case, noting that only her husband was a signatory to the cheque. The woman approached the High Court after the Magistrate issued process against her and her husband on November 27, 2019 u/s 138 of the …

[Cheque Dishonour] Accused Must Take 'Probable Defence' To Rebut Adverse Presumption U/S 139 NI Act: Karnataka High Court Reiterates
1 year, 4 months ago

[Cheque Dishonour] Accused Must Take 'Probable Defence' To Rebut Adverse Presumption U/S 139 NI Act: Karnataka High Court Reiterates

Live Law  

The Karnataka High Court has reiterated that to rebut the presumption under Section 139 Negotiable Instruments Act that cheque has been issued in discharge of a debt or liability, the accused must raise 'probable defence'. Faced with accused's mere denial regarding the existence of debt, Justice S Rachaiah remarked, “If the defence taken by the accused is not acceptable obviously …

Cheque Dishonour Cases - What Should Courts Ask Accused Once Presumption Under S.139 NI Act Is Applicable? Supreme Court Explains
1 year, 5 months ago

Cheque Dishonour Cases - What Should Courts Ask Accused Once Presumption Under S.139 NI Act Is Applicable? Supreme Court Explains

Live Law  

Reiterating the principles relating to the presumption under Section 139 of the Negotiable Instruments Act 1881, the Supreme Court reversed the acquittal of an accused in a case for cheque dishonour.A bench comprising Justices Aravind Kumar and SVN Bhatti observed that there was a "fundamental flaw" in the approach taken by both the Trial Court and the High Court.Summarising the …

Illegal Fee Of Advocate Is Not A Legal Claim: Madras High Court Quashes Proceedings Against Client For Dishonour Of Cheque Paid To Advocate
1 year, 6 months ago

Illegal Fee Of Advocate Is Not A Legal Claim: Madras High Court Quashes Proceedings Against Client For Dishonour Of Cheque Paid To Advocate

Live Law  

The Madras High Court recently came to the rescue of a client who had been proceeded against the Negotiable Instruments Act based on a complaint by a lawyer for dishonor of cheque by observing that a fee, which is per se illegal as per the Legal Practitioners Rules, will not be a legal claim and a legal liability could not …

Wife Cannot Be Made Accused in NI Act Case For Cheque Issued By Her Husband: Karnataka High Court
2 years, 4 months ago

Wife Cannot Be Made Accused in NI Act Case For Cheque Issued By Her Husband: Karnataka High Court

Live Law  

The Karnataka High Court has said proceedings under Section 138 of the Negotiable Instruments Act cannot be initiated against the wife for "dishonor of the cheque issued by her husband". A single judge bench of Justice M I Arun while allowing the petition filed by petitioner Veenashri and quashing the proceedings against her, said, "Petitioner cannot be made accused for …

S.138 NI Act | Director Cannot Be Prosecuted For Cheque Dishonour Without Arraying Company As Accused: Kerala High Court Reiterates
2 years, 4 months ago

S.138 NI Act | Director Cannot Be Prosecuted For Cheque Dishonour Without Arraying Company As Accused: Kerala High Court Reiterates

Live Law  

The Kerala High Court has reiterated that when a cheque issued by a company is dishonored, prosecution under Section 138 of the Negotiable Instruments Act against its Director shall not sustain if the company is not arrayed as an accused. Justice A. Badharudeen relying on the law laid down by the Apex Court, observed that prosecution against the director of …

Cheque Dishonour Case Convict Agrees To Pay After 10 Yrs Litigation; Supreme Court Imposes Rs 5 Lakh Cost For Wasting Judicial Time
2 years, 5 months ago

Cheque Dishonour Case Convict Agrees To Pay After 10 Yrs Litigation; Supreme Court Imposes Rs 5 Lakh Cost For Wasting Judicial Time

Live Law  

A party faced the ire of the Supreme Court for taking a cheque dishonour dispute to the level of apex level before agreeing to settle the matter with the complainant. The appellant had approached the Supreme Court challenging the concurrent orders of conviction passed by three courts against him for the offence of cheque dishonour under Section 138 of the …

No Offence Under Section 138 NI Act If Cheque Is Presented For Full Amount Without Endorsing Part Payment Made By Borrower : Supreme Court
2 years, 5 months ago

No Offence Under Section 138 NI Act If Cheque Is Presented For Full Amount Without Endorsing Part Payment Made By Borrower : Supreme Court

Live Law  

In a significant judgment, the Supreme Court on Tuesday held that no offence for dishonour of cheque under Section 138 of the Negotiable Instruments Act is made out if the cheque is presented for the full amount without endorsing the part-payment made by the borrower after the issuance of the cheque.The Court held that the sum reflected on the cheque …

Failure To Raise 'Probable Defence' Or Deny Issuance Of Cheque & Signature Thereupon Strengthens Presumption U/S 139 NI Act: Himachal Pradesh HC
2 years, 7 months ago

Failure To Raise 'Probable Defence' Or Deny Issuance Of Cheque & Signature Thereupon Strengthens Presumption U/S 139 NI Act: Himachal Pradesh HC

Live Law  

The Himachal Pradesh High Court has observed that if the drawer of a cheque fails to raise a "probable defence" or to contest the existence of a legally enforceable debt or to deny the issuance of the cheque and signatures thereupon, the statutory presumption in favour of cheque holder under Section 139 of Negotiable Instruments Act comes into play. "Interestingly, …

Dishonour Of Cheque | S.27 General Clauses Act Presumes Service Of Statutory Notice In Favour Of Complainant: Punjab & Haryana High Court
2 years, 8 months ago

Dishonour Of Cheque | S.27 General Clauses Act Presumes Service Of Statutory Notice In Favour Of Complainant: Punjab & Haryana High Court

Live Law  

The Punjab and Haryana High Court recently held that the service of notice upon the accused in cheque dishonour case cannot be denied in light of Section 27 of the General Clauses Act, which provides a presumption in favour of the complainant that the notice had been delivered.The bench comprising Justice Jasjit Singh Bedi was dealing with a revision petition …

Joint Account Holder Who Is Not A Signatory To Cheque Shall Not Be Prosecuted Under Section 138 Of NI Act: Telangana High Court
3 years, 2 months ago

Joint Account Holder Who Is Not A Signatory To Cheque Shall Not Be Prosecuted Under Section 138 Of NI Act: Telangana High Court

Live Law  

In a case pertaining to dishonor of cheque, the Telangana High Court recently ruled that a joint account holder who is not a signatory to the disputed cheque shall not be prosecuted under Section 138 of Negotiable Instrument Act, 1981. Relying on the Supreme Court ruling in Alka Khandu Avhad vs. Amar Syamprasad Mishra, Justice Shameem Akhtar held that a …

Gandhian offers to pay up his share of State debt
3 years, 7 months ago

Gandhian offers to pay up his share of State debt

The Hindu  

T. Ramesh wrote a cheque for ₹2.63 lakh, a precise amount targeted at ensuring that his component of Tamil Nadu’s debt burden was at least repaid. Computing each family’s share of the public debt burden of Tamil Nadu, the Finance Minister put it at ₹2.63 lakh per family. Mr. Ramesh, who is from Bommaikuttaimedu, said his cheque was from a …

Dishonour Of Cheque: Specific Averments To Be Mentioned, Not Enough To Allege That the Accused Was CEO Or Director Of Company: Delhi High Court
4 years, 3 months ago

Dishonour Of Cheque: Specific Averments To Be Mentioned, Not Enough To Allege That the Accused Was CEO Or Director Of Company: Delhi High Court

Live Law  

The Delhi High Court has passed an order quashing criminal proceedings against the former CEO of a company in a cheque dishonour case, holding that as no specific allegations or averments against the former CEO, regarding her alleged role either in the transaction or in the conduct of business of the company were made out, the complaint against her was …

Dishonour Of Cheques: 14 Latest Supreme Court Judgments
5 years, 9 months ago

Dishonour Of Cheques: 14 Latest Supreme Court Judgments

Live Law  

Section 148 NI Act Retrospective In this case, the Supreme Court held that Section 148 of the Negotiable Instruments Act as amended, shall be applicable in respect of the appeals against the order of conviction and sentence for the offence under Section 138 of the N.I. Complainant Need Not Prove Source Of Fund, Once Section 139 Presumption Is Drawn The …

Complaint Under Section 138 NI Act Maintainable Against Dishonour Of Cheques Issued In Pursuance Of Agreement For Sale: SC [Read Judgment]
6 years ago

Complaint Under Section 138 NI Act Maintainable Against Dishonour Of Cheques Issued In Pursuance Of Agreement For Sale: SC [Read Judgment]

Live Law  

The Supreme Court has observed that a complaint under Section 138 of the Negotiable Instruments Act is maintainable when there is dishonour of cheques issued under and in pursuance of the agreement to sell. The accused moved the High Court which quashed the complaint holding that cheques had not been issued for creating any liability or debt but for the …

S.138 NI Act Offence Attracted Even If Cheque Issued For Sale Consideration Not Disclosed in Sale Deed:Delhi HC [Read Judgment]
6 years, 8 months ago

S.138 NI Act Offence Attracted Even If Cheque Issued For Sale Consideration Not Disclosed in Sale Deed:Delhi HC [Read Judgment]

Live Law  

The Delhi High Court has held that offence of dishonour of cheque under Section 138 of the Negotiable Instruments Act is attracted even if the cheque was issued in respect of sale consideration which was not disclosed in the sale deed. The trial court noted that even though the complainant stated the sale consideration to be Rs.20 lakhs, the value …

Dishonour Of Cheque-Presumption U/S 139 Of NI Act Can’t Be Rebutted By Mere Denial: SC Reiterates [Read Judgment]
6 years, 8 months ago

Dishonour Of Cheque-Presumption U/S 139 Of NI Act Can’t Be Rebutted By Mere Denial: SC Reiterates [Read Judgment]

Live Law  

The Supreme Court on Monday reiterated that mere denial of a debt or liability cannot shift the burden of proof from the accused in a case of dishounor of the cheque.A bench of Justice A K Sikri and Justice Ashok Bhushan once again made it clear that Section 139 of the Negotiable Instruments Act, 1881, provides for drawing the presumption …

Just Handing Over The Cheque To The Complainant Does Not Make The Person Liable Under NI Act: Rajasthan HC [Read Order]
7 years, 5 months ago

Just Handing Over The Cheque To The Complainant Does Not Make The Person Liable Under NI Act: Rajasthan HC [Read Order]

Live Law  

The Rajasthan High Court has held that the mere fact of handing over the cheque that was later dishonored would not be enough to make out a case under Section 138 of the Negotiable Instrument Act.The Court was hearing a Petition filed under Section 482 of the Code of Criminal Procedure, seeking quashing of proceedings initiated against the Petitioner under …

Dishonour Of Cheque Issued As Security For Repayment Of Loan Covered U/S 138 Of NI Act: SC [Read Judgment]
8 years, 6 months ago

Dishonour Of Cheque Issued As Security For Repayment Of Loan Covered U/S 138 Of NI Act: SC [Read Judgment]

Live Law  

Crucial question to determine applicability of Section 138 of the Act is whether the cheque represents discharge of existing enforceable debt or liability or whether it represents advance payment without there being subsisting debt or liability, the Bench said. The Supreme Court on Monday held the dishonour of a post-dated cheque given for repayment of loan installment, which is also …

Dishonour of Cheque; Complaint against officials of Company cannot be quashed merely on the ground that apart from the basic averment no particulars are given in the complaint about their role: SC...
8 years, 11 months ago

Dishonour of Cheque; Complaint against officials of Company cannot be quashed merely on the ground that apart from the basic averment no particulars are given in the complaint about their role: SC...

Live Law  

The Supreme Court in Standard Chartered Bank vs. State of Maharashtra has reiterated that a Director cannot get a Section 138 Negotiable Instruments Act complaint against him quashed under Section 482 of Code of Criminal Procedure, merely on the ground that apart from the basic averment no particulars are given in the complaint about his roleIn this case, the High …

Breaking; Dishonour of Cheque Cases can only be filed before the Court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment is situated;...
9 years, 11 months ago

Breaking; Dishonour of Cheque Cases can only be filed before the Court within whose local jurisdiction the bank branch of the payee, where the payee presents the cheque for payment is situated;...

Live Law  

The Union Cabinet, chaired by the Prime Minister Shri Narendra Modi, has approved the proposal to introduce the Negotiable Instruments Bill, 2015 in Parliament. The main amendment included in this is the stipulation that the offence of rejection/return of cheque u/s 138 of NI Act will be enquired into and tried only by a Court within whose local jurisdiction the …

Dis-honour of Cheque; When it is proved that Complainant had no source of income to lend the amount to the accused, accused is entitled to acquittal: SC [Read the Judgment]
10 years, 4 months ago

Dis-honour of Cheque; When it is proved that Complainant had no source of income to lend the amount to the accused, accused is entitled to acquittal: SC [Read the Judgment]

Live Law  

A two Judge Bench of the Supreme Court comprising of Justice Gopal Gowda and Justice Nagappan in K. Subramani Vs.K. Damodara Naidu acquitted the accused by accepting the trial Court verdict which held that that the complainant had no source of income to lend a sum of Rs.14 lakhs to the accused and he failed. Damodara Naidu acquitted the accused …

Dis-honour of Cheque; When it is proved that Complainant had no source of income to lend the amount to the accused, accused is entitled to acquittal: SC [Read the Judgment]
10 years, 4 months ago

Dis-honour of Cheque; When it is proved that Complainant had no source of income to lend the amount to the accused, accused is entitled to acquittal: SC [Read the Judgment]

Live Law  

A two Judge Bench of the Supreme Court comprising of Justice Gopal Gowda and Justice Nagappan in K. Subramani Vs.K. Damodara Naidu acquitted the accused by accepting the trial Court verdict which held that that the complainant had no source of income to lend a sum of Rs.14 lakhs to the accused and he failed. Damodara Naidu acquitted the accused …

Cheque Bouncing Case Against Director Raj Kumar Santoshi
12 years, 11 months ago

Cheque Bouncing Case Against Director Raj Kumar Santoshi

India TV News  

Mumbai, March 31: A cheque bouncing case was filed against director Rajkumar Santoshi at the Metropolitan Magistrates Court in Vikhroli by Reliance Capital Ltd this week. The director who gave such hits as Ghayal,Damini,Andaz Apna Apna and Ajab Prem ki Ghazab Kahani allegedly gave a cheque for Rs 25 lakh while repaying a loan, reports Mumbai Mirror.Reliance Capital,which has one …

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