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Search Results Judgments > Act:NEGOTIABLE INSTRUMENTS ACT, 1881 Section 139 Court:Supreme

May 07 2010

Rangappa Vs. Sri Mohan

  • Decided on : 07-May-2010

Court : Supreme Court of India

Reported in : AIR2010SC1898

... granted.2. In the present case, the trial court had acquitted the appellant-accused in a case related to the dishonour of a cheque under Section 138 of the Negotiable Instruments Act, 1881 [Hereinafter `Act']. This finding of acquittal had been made by the Addl. JMFC at Ranebennur, Karnataka in Criminal Case No. 993/2001, by way of a judgment dated 30 ... and he accepts and admits the signatures on the said cheque, then initial presumption as contemplated under Section 139 of the Negotiable Instruments Act has to be raised by the Court in favour of the complainant. The presumption referred to in Section 139 of the N.I. Act is a mandatory presumption and not a general presumption, but the accused is entitled to rebut ... -claimant has also referred to the decision reported as Mallavarapu Kasivisweswara Rao v. Thadikonda Ramulu Firm & Ors., 2008 (8) SCALE 680, wherein it was observed: "Under Section 118(a) of the Negotiable Instruments Act, the court is obliged to presume, until the contrary is proved, that the promissory note was made for consideration. It is also a settled position that ... presumption which favours the complainant. Section 139 of the Act is an example of a reverse onus clause that has been included in furtherance of the legislative objective of improving the credibility of negotiable instruments. While Section 138 of the Act specifies a strong criminal remedy in relation to the dishonour of cheques, the rebuttable presumption under Section 139 is a device to prevent undue ...

Nov 19 2001

M.M.T.C. Ltd. and Anr. Vs. Medchl Chemicals & Pharma (P) Ltd. and Anr. ...

  • Decided on : 19-Nov-2001

Court : Supreme Court of India

Reported in : AIR2002SC182,2002(1)ALD(Cri)585,2002(1)ALT(Cri)230,2002(1)AWC80(SC),IV(2005)BC59(SC),2002(1)BomCR218,[2002]108CompCas48(SC),(2002)1CompLJ58(SC),2002CriLJ266,2002(1

... by this Court in the case of : 2001CriLJ4745 : 2001CriLJ4745 v. (SIC) reported in : 2001CriLJ4745 : 2001CriLJ4745 , wherein again it has been held hat under Section 139 of the Negotiable Instruments Act the Court has to presume, in a complaint under Section 138, that the cheque had been issued of a debt or liability.17. There is therefore no requirement that the Complainant must specifically allege ... vital allegation, considerably impairs the maintainability.'15. In the case of Maruti Udyog Ltd. v. Narander reported in : (1999)1SCC113 , this Court has held that by virtue of Section 139 of the Negotiable Instruments Act, the Court has to draw a presumption that the holder of the cheque received the cheque for discharge of a debt or liability until the contrary is proved. ... cognizance of the said complaints ought not to have been taken by the Magistrate.'10. In our view the reasoning given above cannot be sustained. Section 142 of the Negotiable Instruments Act provides that a complaint under Section 138 can be made by the payee or the holder in due course of the said cheque. The two complaints, in question are by ... are against a Judgment dated 18th December, 1998. By this common, Judgment two complaints, filed by the appellants under Section 138 of the Negotiable Instruments Act have been quashed.4. The appellant is a Government of India Company incorporated under the Companies Act. The appellant has a Regional Office at Chennai. The 1st respondent is also a Company. The 2nd and 3nd ...

Jan 11 2008

Krishna Janardhan Bhat Vs. Dattatraya G. Hegde

  • Decided on : 11-Jan-2008

Court : Supreme Court of India

Reported in : AIR2008SC1325; 2008(1)ALD(Cri)485; 2008(2)ALT(Cri)170; 2008(5)BomCR470; [2008]141CompCas665(SC); 2008CriLJ1172; 2008(1)CTC433; JT2008(1)SC485; 2008(1)KLT425(SC); 2008AIRSCW738; AIR2008SC1325; 2008(4)SCC54; (2008)2SCC(Cri)166; 2008CriLJ1172; 2008(1)KLT425(SC); 2008(1)Crimes227; 2008(1)AICLR834; 2008(1)SCALE421; 2008(1)LH(SC)631; 2008(6)KLJ538; 2008(2)AIRKarR219; (2008)4SCC54

... Trial Judge, the Sessions Court as also the High Court committed a serious illegality insofar as it misread and misapplied the provisions of Section 139 of the Negotiable Instruments Act (for short 'the Act').It was contended that the procedural requirements of Section 138 are:(i) There is a legally enforceable debt.(ii) The drawer of the cheque issued the cheque to satisfy part or ... , seriousness as also gravity thereof may be taken into consideration. The courts must be on guard to see that merely on the application of presumption as contemplated under Section 139 of the Negotiable Instruments Act, the same may not lead to injustice or mistaken conviction. It is for the aforementioned reasons that we have taken into consideration the decisions operating in the field ... ground to interfere in the order of the Trial Court and that the Appellate Court, so far as they hold the petitioner guilty of an offence punishable under Section 138 of the Negotiable Instruments Act. 16. Before embarking upon the legal issues, we may analyse the deposition of PW-1 - Complainant. He was a resident of village Goddalmane. Appellant is a resident ... time without any cause, thereby Negotiable Instruments Act?The learned Trial Judge noticed the contents of the claim petition as also the evidence of PW-1. It also noticed the suggestions given to the said PW-1 by the appellant herein. Upon taking into consideration the same as also the statement of the appellant under Section 313 of the Code of Criminal ...

Dec 16 2008

Kumar Exports Vs. Sharma Carpets

  • Decided on : 16-Dec-2008

Court : Supreme Court of India

Reported in : AIR2009SC1518; 2009(1)BomCR624; (2009)2GLR1240(SC); JT2009(1)SC20; 2009(1)KLT197(SC); 2009(4)MhLJ23(SC); 2009(I)OLR(SC)460; RLW2009(4)SC2981; 2008(16)SCALE342; (2009)2SCC51:2009AIRSCW1018:2009(1)LHSC428

... Judicial Magistrate I Class, Karnal, in Criminal Complaint No. 178 of 2001, acquitting the appellant under Section 138 of the Negotiable Instruments Act, 1881 (`the Act' for short), is set aside and after convicting the appellant under Section 138 of the Act the matter is remitted to the learned Magistrate to pass appropriate order of sentence.3. Jai ... Section 3 of the Evidence Act to the provisions of Sections 118 and 139 of the Act, it becomes evident that in a trial under Section 138 of the Act a presumption will have to be made that every negotiable instrument was made or drawn for consideration and that it was executed for discharge of debt or liability once the execution of negotiable instrument ... negotiable instrument was made or drawn for consideration. Section 139 of the Act stipulates that unless the contrary is proved, it shall be presumed, that the holder of the cheque received the cheque, for the discharge of, whole or part of any debt or liability. Applying the definition of the word `proved' in Section 3 of the Evidence Act to the provisions of Sections 118 and 139 of the Act ... 139 of the Act, it becomes evident that in a trial under Section 138 of the Act a presumption will have to be made that every negotiable instrument was made or drawn for consideration and that it was executed for discharge of debt or liability once the execution of negotiable instrument is either proved or admitted. As soon as the complainant discharges the burden to prove that the instrument ...

Jul 11 2001

Hiten P. Dalal Vs. Bratindranath Banerjee

  • Decided on : 11-Jul-2001

Court : Supreme Court of India

Reported in : AIR2001SC3897; 2001(2)ALD(Cri)234; 2001ALLMR(Cri)1497(SC); II(2001)BC773(SC); 2001(49)BLJR1955; [2001]106CompCas574(SC); (2001)3CompLJ313(SC); 2001CriLJ4647; 2001(3)Crimes2; (2001)6SCC16

... J.1. The appellant was found guilty of an offence under Section 138 of the Negotiable Instruments Act, 1881 by the Special Court set up under the Special Court (Trial of Offences relating to Transactions in Securities) Act, 1992 (referred to as, the 'Act'). The appellant was sentenced to rigorous imprisonment for a term of one year and a fine for a ... namely, under Section 118 138 and 139 of the Negotiable Instruments Act. Section 118 provides, inter-alia, that until the contrary is proved it shall be presumed that every negotiable instrument was made or drawn for consideration, and that every such instrument when it has been accepted, indorsed, negotiated or transferred, was accepted, indorsed, negotiated or transferred for consideration. The presumption which arises under Section 138 provides ... of the Trial before the Special Court except to note the charges were framed on 26th August 1992 by the Special Court against the appellant under Section 138 of the Negotiable Instruments Act, 1881.20. That the four cheques were executed by the appellant in favour of the Standard Chartered Bank (hereafter referred to as the Bank), has not ... other liability' is answered by the third presumption available to the Bank under Section 139 of the Negotiable Instruments Act. This section provides that 'it shall be presumed, unless the contrary is proved, that the holder of a cheque received the cheque, of the nature referred to in Section 138 for the discharge, in whole or in part, of any debt ...

Feb 07 2013

Vijay Vs. Laxman and Another

  • Decided on : 07-Feb-2013

Court : Supreme Court of India

... Section 138 of the Negotiable Instruments Act, 1881, this Court held that the presumptions under Sections 118(a) and 139 of the Act are rebuttable and the standard of proof required for such rebuttal is preponderance of probabilities and not proof beyond reasonable doubt. The Court observed: 29. In terms of Section 4 of the Evidence Act whenever it is provided by the Act ... charge framed against him under Section 138 of the Negotiable Instruments Act, 1881 and that the present appeal ought to be dismissed. I, however, would like to add a few words of my own in support of that conclusion. 2. The factual matrix in which the complaint under Section 138 of the Negotiable Instruments Act was filed against ... Negotiable Instruments Act incorporates two presumptions in this regard: one containing in Section 118 of the Act and other in Section 139 thereof. Section 118 (a) reads as under:- 118. Presumption as to negotiable instruments.Until the contrary is proved, the following presumptions shall be made 1. of consideration: that every negotiable instrument was made or drawn for consideration, and that every such instrument when it has been accepted, indorsed, negotiated ... story suspect. We are not unmindful of the fact that there is a presumption that the issue of a cheque is for consideration. Sections 118 and 139 of the Negotiable Instruments Act make that abundantly clear. That presumption is, however, rebuttable in nature. What is most important is that the standard of proof required ...

Feb 07 2013

VIJAY Vs. LAXMAN & ANR

  • Decided on : 07-Feb-2013

Court : Supreme Court of India

... Section 138 of the Negotiable Instruments Act, 1881, this Court held that the presumptions under Sections 118(a) and 139 of the Act are rebuttable and the standard of proof required for such rebuttal is preponderance of probabilities and not proof beyond reasonable doubt. The Court observed: 29. In terms of Section 4 of the Evidence Act whenever it is provided by the Act ... charge framed against him under Section 138 of the Negotiable Instruments Act, 1881 and that the present appeal ought to be dismissed. I, however, would like to add a few words of my own in support of that conclusion.2. The factual matrix in which the complaint under Section 138 of the Negotiable Instruments Act was filed against the ... Negotiable Instruments Act incorporates two presumptions in this regard: one containing in Section 118 of the Act and other in Section 139 thereof. Section 118 (a) reads as under:- 118. Presumption as to negotiable instruments. Until the contrary is proved, the following presumptions shall be made 1. of consideration: that every negotiable instrument was made or drawn for consideration, and that every such instrument when it has been accepted, indorsed, negotiated ... story suspect. We are not unmindful of the fact that there is a presumption that the issue of a cheque is for consideration. Sections 118 and 139 of the Negotiable Instruments Act make that abundantly clear. That presumption is, however, rebuttable in nature. What is most important is that the standard of proof required ...

Mar 14 2001

Ashok Yeshwant Badave Vs. Surendra Madhavrao Nighojakar and Anr.

  • Decided on : 14-Mar-2001

Court : Supreme Court of India

Reported in : AIR2001SC1315; 2001(1)ALD(Cri)668; 2001ALLMR(Cri)1028(SC); 2001(2)ALT(Cri)11; 2001CriLJ1674; JT2001(3)SC508; 2001(2)KLT28(SC); 2001(2)SCALE472; (2001)3SCC726; [2001]2SCR426

... the offence under Section 138 of the Negotiable Instruments Act, 1881 (hereinafter referred to as 'the Act').3. Surendra Madhavrao Nighojkar - respondent No. 1 filed a petition of complaint in the Court of Chief Judicial Magistrate, Satara on 2.9.1996 for prosecution of the appellant under Section 138 of the Act besides Section 420 of ... and consequently by Section 16 of the Notaries Act, 1952, Sections 138 and 139 were repealed and thereby Chapter XVII was abolished w.e.f. 14th February, 1956. However, Chapter XVII has been re-introduced in the Act by Section 4 of the Banking, Public Financial Institutions and Negotiable Instruments Laws (Amendment) Act, 1988 (Act 66 of 1988 ... sections, namely, Sections 138 to 142 which are altogether different from old Sections 138 and 139. The object of bringing Section 138 by the aforesaid amending Act on the Statute appears to be to inculcate faith in the efficacy of banking operations and credibility in transacting business of negotiable instruments. Despite civil remedy, Section 138 intends to prevent dishonesty on the part of the drawer of negotiable instruments ... negotiable instruments. Despite civil remedy, Section 138 intends to prevent dishonesty on the part of the drawer of negotiable instruments to draw a cheque without sufficient funds in his account maintained by him in a bank and induces the payee or holder in due course to act upon it.8. Relevant portion of Section 5 and the provisions of Sections 6 19 138 139 and 140 of the Act ...

Oct 18 2001

K.N. Beena Vs. Muniyappan and anr.

  • Decided on : 18-Oct-2001

Court : Supreme Court of India

Reported in : 2001VIIIAD(SC)566; AIR2001SC2895; 2001(2)ALD(Cri)824; 2002(1)ALLMR(SC)277; 2001(2)ALT(Cri)382; IV(2006)BC287(SC); 2002(50)BLJR193; [2001]107CompCas459(SC); (2002)1CompLJ55(

... cheque is on the complainant. It appear that the learned Judge had lost sight of Sections 118 and 139 of the Negotiable Instruments Act. Under Section 118, unless the contrary was proved, it is to be presumed that the Negotiable Instrument (including a cheque) had been made or drawn for consideration. Under Section 139 the Court has to presume, unless the contrary was proved, that the holder of ... Negotiable Instruments Act. Under Section 118, unless the contrary was proved, it is to be presumed that the Negotiable Instrument (including a cheque) had been made or drawn for consideration. Under Section 139 the Court has to presume, unless the contrary was proved, that the holder of the cheque received the cheque for discharge, in whole or in part, of a debt or liability. Thus in complainants under Section ... N. Variava, J. 1. Leave granted 2. Heard parties. 3. Briefly stated the facts are as follows 4. The Appellant filed a complaint under Section 138 of the Negotiable Instruments Act as the Cheque dated 6th April, 1993 in a sum of Rs.63720/-, issued by the 1st First Respondent in favour of the Appellant on Central Bank, had been ... dated 21st May, 1993 was sent by the 1st Respondent. However no payment was made. 5. After trial the Judicial Magistrate-II, Kumbakonam, convicted the 1st First Respondent under Section 138 and directed payment of a fine of Rs.65000/-. In default the 1st Respondent was to suffer simple imprisonment for one year. The 1st Respondent challenged the conviction ...

Sep 13 2006

Sabitha Ramamurthy and Anr. Vs. R.B.S. Channabasavaradhya

  • Decided on : 13-Sep-2006

Court : Supreme Court of India

Reported in : AIR2006SC3086; II(2007)BC210(SC); (2006)6CompLJ290(SC); 2006CriLJ4602; [2006(4)JCR138(SC)]; JT2006(12)SC20; 2006(6)KarLJ161; 2006(4)MPHT212; RLW2007(1)SC467; 2006(9)SCALE21

... Negotiable Instruments Act provides that where a cheque drawn by a person is returned by the bank unpaid on the grounds specified therein, the person who had drawn the said cheque shall be deemed to have committed an offence thereunder. Section 139 provides for a presumption in favour of a holder of a negotiable instrument. Section 141 of the Act provides for offences by a company. Sub-section (1) of Section ... 4. Section 138 of the Negotiable Instruments Act provides that where a cheque drawn by a person is returned by the bank unpaid on the grounds specified therein, the person who had drawn the said cheque shall be deemed to have committed an offence thereunder. Section 139 provides for a presumption in favour of a holder of a negotiable instrument. Section 141 of the Act provides ... Section 141 of the Negotiable Instruments Act had not been complied with. It may be true that it is not necessary for the complainant to specifically reproduce the wordings of the section but what is required is a clear statement of fact so as to enable the court to arrive at a prima facie opinion that the accused are vicariously liable. Section ... was filed on 27.8.2001....Processes were directed to be issued on the said statement for alleged commission of an offence under Section 138 of the Negotiable Instruments Act.3. Appellants herein filed an application under Section 482 of the Code of Criminal Procedure praying for quashing of the processes issued against them in the said proceedings.The High ...

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