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Search Results Judgments > Phrase: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 ...

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 ...

Nov 30 2012

Laxmi Dyechem. Vs. State of Gujarat.

  • Decided on : 30-Nov-2012

Court : Supreme Court of India

... 19th April, 2010 and 27th August, 2010 passed by the High Court of Gujarat at Ahmedabad whereby the High Court has quashed 40 different complaints under Section 138 of the Negotiable Instruments Act, 1881 filed by the appellant against the respondents. Relying upon the decision of this Court in Vinod Tanna & Anr. v. Zaher Siddiqui & Ors. (2002) 7 SCC ... [(2010) 11 SCC 441] held that Section 139 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 the strong criminal remedy in relation to the dishonour of the cheques, the rebuttable presumption under Section 139 is a device to prevent ... Sections 138 to 142 of the Negotiable Instruments Act was introduced in the statute by Act 66 of 1988. The object underlying the provision contained in the said Chapter was aimed at inculcating faith in the efficacy of banking operations and giving credibility to negotiable instruments in business and day to day transactions by making dishonour of such instruments an offence. A negotiable instrument ... Section 138 of the Negotiable Instruments Act. The contention of the company that issued the cheque was that Section 138 being a penal provision ought to be strictly construed and when so interpreted, dishonour of a cheque on ground that the account was closed was not punishable as the same did not fall in any of the two contingencies referred to in Section ...

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 ...

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 ...

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 ...

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 ...

May 08 2008

Aneeta Hada Vs. Godfather Travels and Tours Pvt. Ltd.

  • Decided on : 08-May-2008

Court : Supreme Court of India

Reported in : 2008(3)ALLMR(SC)881; 2008(3)CTC840; 2008(8)SCALE25; [2008]85SCL56(SC)

... a complaint petition against the appellant under Section 138 of the Negotiable Instruments Act, 1881 ('the Act' for short). The Company which is a juristic person was not arrayed as an accused. The learned Magistrate took cognizance of the offence against her. Respondent had not even served any notice upon the Company in terms of Section 138 of the Act. It served a notice only on ... Section 138 of the Negotiable Instruments Act (hereinafter referred to as "the Act") will be complete atleast against her. That is the clear import of the language of Section 138 of the Act and her act is squarely covered under the said Section. The High Court had correctly relied on Section 139 of the Act. We accept that finding of the High Court. It is true that for a proper complaint under Section ... it is held that "as per Section 138 of the Act the drawer of a dishonoured cheque only is liable for punishment". He also cited K. Seetharam Reddy v. K. Radhika Rani, (2002) 112 Comp Cas 204 (AP) in support of his arguments. It is held in the said decision that "Section 138 of the Negotiable Instruments Act, 1881, leaves no doubt that the ... Section 138 of the Negotiable Instruments Act, 1881, leaves no doubt that the person who has drawn the cheque on his account is alone liable in the event the cheque drawn by him is dishonoured". In the light of the above dictum also, I find that neither first accused- society nor petitioner, as secretary of the society can be proceeded against for offence under Section ...

May 05 2009

Sh. Vishnu Dutt Sharma Vs. Smt. Daya Sapra

  • Decided on : 05-May-2009

Court : Supreme Court of India

Reported in : 2009(4)AWC3405(SC); JT2009(13)SC44; 2009(8)SCALE698:2009AIRSCW5341;

... Section 118(a) and 139 of the Negotiable Instruments Act on the touchstone of the principles of presumption of innocence fell for consideration before this Court in Krishna Janardhan Bhat v. Dattatraya G. Hegde reported in : 2008CriLJ1172 wherein it was categorically held:19. Indisputably, a mandatory presumption is required to be raised in terms of Section 118(b) and Section 139 of the Act. Section 13(1) of the Act defines 'negotiable instrument ... back by the appellant with remarks `insufficient funds'.3. A complaint petition was filed by the appellant against the respondent for alleged commission of offences under Section 138 of the Negotiable Instruments Act and Section 420 of the Indian Penal Code on 29-01-2000. He also filed a suit for recovery of a sum of Rs. 2,04,000/- ... 11(d) read with Section 151 of the Code of Civil Procedure for rejection of the plaint on the ground that the criminal complaint had already been dismissed.The learned Civil Judge dismissed the said application inter alia opining that the findings of a criminal court in the proceeding under Section 138 of the Negotiable Instruments Act would not operate as ... the part of the accused beyond any reasonable doubt; in a civil suit `preponderance of probability' would serve the purpose for obtaining a decree.12. Section 138 of the Negotiable Instruments Act provides that dishonour of a cheque subject to fulfillment of condition precedent as laid down in the proviso appended thereto is a cognizable offence.13. The ...

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