Finding that the presumption under Section 139 of the Negotiable Instruments Act regarding the existence of legally enforceable debt was rebutted, the Supreme Court acquitted an accused in a case filed under Section 138 NI Act.
The case pertained to the dishonour of a cheque for Rs.15 lakhs, which was allegedly issued by the accused in discharge of a loan taken for the said amount from the complainant. The accused had denied the transaction in the reply given to the statutory demand notice issued by the complainant and stated that the blank cheques, which were issued in relation to an earlier sale transaction, was misused by the complainant. The trial court initially acquitted the accused. This was later reversed by the appellate court, which remitted the matter for fresh trial. In the second round, the trial court convicted the accused. In the appeal against conviction, the first appellate court set aside trial court's order and acquitted the accused. In the revision filed by the complainant against this, the High Court restored the trial court's conviction. Against the High Court's judgment, the accused approached the Supreme Court.
Based on these facts, the SC observed: "On a totality of the facts and circumstances and based on the evidence on the record, the first appellate court held that the presumption under Section 139 of the Act stood rebutted and that the defence stood probabalised. From the judgment of the High Court, the significant aspect of the case which stands out is that there has been no appreciation of the evidence or even a reference to the reasons furnished by the first appellate court". The SC termed the HC judgment "unsatisfactory" for not making any reference to evidence on record. "There was absolutely no valid basis to displace the findings of fact which were arrived at by the first appellate court,while acquitting the accused", observed the apex court. The accused was acquitting holding that his "defence that there was an absence of a legally enforceable debt was rendered probable on the basis of the material on record".
Courtesy/By: Sakshi Shukla
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19 Mar 2019
