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

Oct 23 2008

S.L. Construction and Anr. Vs. Alapati Srinivasa Rao and Anr.

  • Decided on : 23-Oct-2008

Court : Supreme

Reported in : AIR2009SC1538; 2009(2)MhLJ971(SC); 2009(1)MPHT465; 2008(15)SCALE308; (2009)1SCC500:2009AIRSCW1044

... Hyderabad whereby and whereunder a petition under Section 482 of the Code of Criminal Procedure Code, 1973 praying for quashing the complaint proceedings under Section 138 and Section 142 of the Negotiable Instrument Act before the IV Additional Munsif Magistrate,Guntur taking cognizance against them under Section 138 of the Negotiable Instruments Act, 1881, was dismissed.2. The factual matrix ... with adequate safeguards to prevent harassment of honest drawers.'17. It is in the aforementioned backdrop we may notice the provisions of Sections 138, 139 and 142 of the said Act:138. Dishonour of cheque for insufficiency, etc., of funds in the account - Where any cheque drawn by a person on an ... Section 138 of the Negotiable Instruments Act;(ii) The first notice having not been served and the appellants themselves having called upon the respondents to withdraw the second notice, cannot now be permitted to urge that the deposit of the cheque for the third time and issuance of third notice was illegal and without jurisdiction.14. The Negotiable Instruments Act, 1881 ... Negotiable Instruments Act, 1881 was enacted to define and amend the law relating to Promissory Notes, Bills of Exchange and Cheques.15. Chapter XVII of the Act provides for penalties in case of dishonour of cheques for insufficiency of funds in the accounts of the drawer thereof.16. Indisputably,Chapter XVII, which was inserted by the Banking Public Financial Institutions and Negotiable Instruments Laws(Amendment) Act ...

Mar 14 2001

Ashok Yeshwant Badave Vs. Surendra Madhavrao Nighojakar and Anr.

  • Decided on : 14-Mar-2001

Court : Supreme

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 ...

May 07 2010

Rangappa Vs. Sri Mohan

  • Decided on : 07-May-2010

Court : Supreme

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

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 ...

Jul 04 2006

M.S. Narayana Menon @ Mani Vs. State of Kerala and Anr.

  • Decided on : 04-Jul-2006

Court : Supreme

Reported in : AIR2006SC3366; III(2006)BC433; [2006]132CompCas450(SC); (2006)6CompLJ39(SC); 2006CriLJ4607; 2006(3)CTC730; JT2006(6)SC72; 2006(3)KLT404(SC); 2006(5)MhLj676; 2006MPLJ97(SC);

... filed on 19.11.1992 by the Second Respondent herein against the Appellant purported to be for commission of an offence under Section 138 of the Negotiable Instruments Act (for short 'the Act'), on the following allegations:2. The Second Respondent had been carrying on business of stock and share brokers under the name and ... Sections 118(a) and 139 of the Act which read as under:118. Presumptions as to negotiable instruments - Until the contrary is proved, the following presumptions shall be made: (a) of consideration - 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. 139 ... 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. 139. Presumption in favour of holder - 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 ... man ought, under the circumstances of the particular case, to act upon the supposition that it does not exist.17. Applying the said definitions of 'proved' or 'disproved' to principle behind Section 118(a) of the Act, the Court shall presume a negotiable instrument to be for consideration unless and until after considering the matter ...

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

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 ...

May 05 2009

Sh. Vishnu Dutt Sharma Vs. Smt. Daya Sapra

  • Decided on : 05-May-2009

Court : Supreme

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 ...

Feb 20 2007

Kamala S. Vs. Vidyadharan M.J. and Anr.

  • Decided on : 20-Feb-2007

Court : Supreme

Reported in : II(2007)BC463(SC); 2007(2)CTC648; (2008)1GLR423(SC); [2008(1)JCR229(SC)]; JT2007(3)SC565; 2007(3)SCALE235; (2007)5SCC264

... B. Sinha, J.1. Leave granted.2. Appellant herein was charged with commission of an offence under Section 138 of the Negotiable Instruments Act, 1881 (for short, 'the Act') on the premise that a cheque issued by her on 05.09.1997 for a sum of Rs. 1 lakh drawn in favour of the respondent herein, when presented, was ... terms of Section 139 of the Act was correctly raised by the High Court. It was submitted that even if the defence raised by the appellant herein was true, she has failed to offer any explanation as to why the cheque had to be issued.10. The Act contains provisions raising presumption as regards the negotiable instruments under Section 118(a) of the Act as also under Section 139 thereof ... the principle behind Section 118(a) of the Act, the court shall presume a negotiable instrument to be for consideration unless and until after considering the matter before it, it either believes that the consideration does not exist or considers the non-existence of the consideration so probable that a prudent man ought, under the circumstances of the particular case, to act upon the supposition ... on behalf of the complainant could be relied upon.11. This Court clearly laid down the law that standard of proof in discharge of the burden in terms of Section 139 of the Act being of preponderance of a probability, the inference therefore can be drawn not only from the materials brought on record but also from the reference to the circumstances upon ...

May 08 2008

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

  • Decided on : 08-May-2008

Court : Supreme

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 ...

Apr 24 2008

T. Nagappa Vs. Y.R. Muralidhar

  • Decided on : 24-Apr-2008

Court : Supreme

Reported in : AIR2008SC2010; 2008(1)ALD(Cri)927; 2008(3)ALT(Cri)62; JT2008(6)SC153; 2008(5)KarLJ112; 2008(3)KLT158(SC); (2008)5MLJ320(SC); 2008(6)SCALE642; (2008)5SCC633; 2008AIRSCW3349; AIR2008SC2010; 2008(5)SCC633; 2008(4)CivilLJ20; 2008(3)AICLR855; 2008(3)Supreme196; 2008(5)LH(SC)3110; 2008(5)KLJ112

... Negotiable Instruments Act. Hence there is no need to refer the cheque for Hand Writing Expert.6. The learned Trial Judge, as also the High Court, in support of their respective orders, have relied upon Section 20 of the Negotiable Instruments Act, which reads as under:Section 20 - Inchoate stamped instruments.- Where one person signs and delivers to another a paper stamped in accordance with the law relating to negotiable instruments ... the person delivering the instrument anything in excess of the amount intended by him to be paid therein.7. When a contention has been raised that the complainant has misused the cheque, even in a case where a presumption can be raised under Section 118(a) or 139 of the said Act, an opportunity must be ... orders, have relied upon Section 20 of the Negotiable Instruments Act, which reads as under:Section 20 - Inchoate stamped instruments.- Where one person signs and delivers to another a paper stamped in accordance with the law relating to negotiable instruments then in force in 1 [India], and either wholly blank or having written thereon an incomplete negotiable instrument, he thereby gives ... of the provisions of Section 20 of Negotiable Instruments Act. Hence there is no need to refer the cheque for Hand Writing Expert.6. The learned Trial Judge, as also the High Court, in support of their respective orders, have relied upon Section 20 of the Negotiable Instruments Act, which reads as under:Section 20 - Inchoate stamped instruments.- Where one person ...

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