s138 NI Act | Complainant Had No Right Over Property, Misused Cheques Issued To Grandfather: Karnataka High Court Upholds Accused's Acquittal
1 year, 3 months ago

s138 NI Act | Complainant Had No Right Over Property, Misused Cheques Issued To Grandfather: Karnataka High Court Upholds Accused's Acquittal

Live Law  

It held: It is admitted that neither her grandfather nor her maternal uncle has promised her to give. It appears that the cheques said to have been issued as security in respect of the sale transaction of property with Sri.H.V.Venkatappa Reddy have been misused by the complainant. The Karnataka High Court has dismissed an appeal upon noting that the appellant/complainant under the Negotiable Instruments Act did not possess any right over the property which had been purchased by the accused using the cheques which were dishonoured. It was argued that the complainant had filed a partition suit claiming her share in the properties for which the accused had issued the cheques. It was also admitted that neither her grandfather nor her maternal uncle had promised her "Rs.30 lakhs or six sites.” On considering the admissions of the complainant in her cross-examination, the Court observed that the cheques had been issued as security in respect of the sale transaction of the property in question, to the appellant's grandfather, and had been misused by her.

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History of this topic

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 …

Cheques Dishonored With Endorsements 'Insufficient Fund', 'Account Closed', 'Signature Mismatch' Attract S. 138 NI Act: Allahabad HC
9 months, 3 weeks ago

Cheques Dishonored With Endorsements 'Insufficient Fund', 'Account Closed', 'Signature Mismatch' Attract S. 138 NI Act: Allahabad HC

Live Law  

The Allahabad High Court has observed that if the cheque is dishonoured and returned with the endorsements - case referred to drawer, instruction for stoppage of payment, exceeds arrangement, insufficient fund, signature differed or mismatch or account closed - then it will be sufficient for prima facie case for issuing process under Section 138 NI Act. A bench of Justice …

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 …

S.138 NI Act | Availability Of Funds In Other Bank Accounts Not A Defence; Cheque Dishonour Relates To Specific Account: Supreme Court
1 year, 3 months ago

S.138 NI Act | Availability Of Funds In Other Bank Accounts Not A Defence; Cheque Dishonour Relates To Specific Account: Supreme Court

Live Law  

Recently, the Supreme Court categorically held that in proceedings initiated for bounced cheques, the defence that there are sufficient funds in the other bank accounts cannot be appreciated.“In a proceeding under Section 138 of the Negotiable Instruments Act, the accused cannot rely upon other bank accounts for. Recently, the Supreme Court categorically held that in proceedings initiated for bounced cheques, …

NI Act | Complainant Can't Seek To Prosecute Company's Former Directors For Cheque Issued To Repay Amount Invested When They Held Office: Karnataka HC
2 years, 4 months ago

NI Act | Complainant Can't Seek To Prosecute Company's Former Directors For Cheque Issued To Repay Amount Invested When They Held Office: Karnataka HC

Live Law  

The Karnataka High Court has quashed the proceedings initiated against two former directors of a company under Section 138 of the Negotiable Instruments Act by the complainant claiming that when he invested the money in the company they were directors. A private complaint was filed under Section 200 of the Code of Criminal Procedure, 1973 for the offence punishable under …

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 …

NI Act- Once The Presumption Under Sec.139 Is Drawn, Complainant Need Not Prove Source Of Fund Till Accused Discharges His Burden [Read Judgment]
6 years ago

NI Act- Once The Presumption Under Sec.139 Is Drawn, Complainant Need Not Prove Source Of Fund Till Accused Discharges His Burden [Read Judgment]

Live Law  

The Supreme Court has held that once the court has drawn presumption of existence of legally enforceable debt as per Section 139 of the Negotiable Instruments Act, factors like source of funds are not relevant if the accused has not been able to rebut the presumption. "When such a presumption is drawn, the factors relating to the want of documentary …

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