{"id":208618,"date":"2019-01-23T12:19:56","date_gmt":"2019-01-23T06:49:56","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=208618"},"modified":"2019-02-01T14:02:21","modified_gmt":"2019-02-01T08:32:21","slug":"mad-hc-presumption-under-s-139-ni-act-in-favour-of-holder-cheque-arises-once-its-execution-is-admitted-by-accused","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/01\/23\/mad-hc-presumption-under-s-139-ni-act-in-favour-of-holder-cheque-arises-once-its-execution-is-admitted-by-accused\/","title":{"rendered":"Madras HC | Presumption under S. 139 NI Act in favour of holder of cheque arises once its execution is admitted by accused"},"content":{"rendered":"

Madras High Court:\u00a0<\/strong>The Bench of P. Velmurugan J. convicted the accused under Section 138 of the Negotiable Instruments Act, 1881 (for dishonour of cheque) and sentenced him to undergo 6 months simple imprisonment and imposed a fine of Rs 1,50,000 to be paid to the complainant.<\/p>\n

The complainant and the accused were running a partnership firm which was subsequently dissolved. The accused issued a cheque for a sum of Rs 1,50,000 in favour of the complainant in at the time of the settling of accounts. The cheque was presented in ICICI Bank and was returned due to insufficient funds. The complainant issued statutory notice to the accused but even after that repayment was not made. Therefore, the complainant initiated proceedings under Section 138. However, the trial court acquitted the accused. Aggrieved thereby, the present appeal was filed by the complainant.<\/p>\n

The High Court noted that the accused admitted that the cheque was issued in favour of the complainant but contended that it was not for legally enforceable debt and was executed at the time of admitting him in the firm only for security purpose. The court observed,\u00a0“once execution of cheque is admitted, it is a legal presumption under Section 139 of Negotiable Instrument Act. The cheque was issued for discharging legally\u00a0enforceable debt. No doubt the presumption is rebuttable.”\u00a0<\/strong>In the present case, the court found that the accused was not able to rebut the presumption in any manner known to law. The mere contention raised by him could not suffice. Finding the accused guilty for offence punishable under Section 138 , the Court set aside the impugned judgment of the trial court. The appeal was allowed and the accused was sentenced as mentioned above.[A.K. Mohammed Farook v. M. Syed Jaheer Hussain, 2019 SCC OnLine Mad 187<\/b><\/a>, dated 19-1-2019]<\/p>\n","protected":false},"excerpt":{"rendered":"

Madras High Court:\u00a0The Bench of P. Velmurugan J. convicted the accused under Section 138 of the Negotiable Instruments Act, 1881 (for dishonour <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[33385,33384,7551,33382,33383],"class_list":["post-208618","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-insufficient-funds","tag-legally-enforceable-debt","tag-partnership","tag-section-138-of-the-negotiable-instrument","tag-statutory-notice"],"yoast_head":"\nMadras HC | Presumption under S. 139 NI Act in favour of holder of cheque arises once its execution is admitted by accused | SCC Times<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.scconline.com\/blog\/post\/2019\/01\/23\/mad-hc-presumption-under-s-139-ni-act-in-favour-of-holder-cheque-arises-once-its-execution-is-admitted-by-accused\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Madras HC | Presumption under S. 139 NI Act in favour of holder of cheque arises once its execution is admitted by accused\" \/>\n<meta property=\"og:description\" content=\"Madras High Court:\u00a0The Bench of P. 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CMM Court considers","author":"Bhumika Indulia","date":"December 6, 2021","format":false,"excerpt":"Court of XX Addl. Chief Metropolitan Magistrate, Bengaluru City: Bhola Pandit, XX Addl. CMM, convicted a person who presented a cheque to repay a loan but the same was dishonored due to insufficient funds. Instant complaint was filed under Section 200 of Code of Criminal procedure against the accused of\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/City-Civil-Court-Bengaluru.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/City-Civil-Court-Bengaluru.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/City-Civil-Court-Bengaluru.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/City-Civil-Court-Bengaluru.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/City-Civil-Court-Bengaluru.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":316446,"url":"https:\/\/www.scconline.com\/blog\/post\/2024\/03\/08\/delhi-court-acquits-accused-under-section-138-negotiable-instruments-act-failure-establish-debt-adjustment-legal-news\/","url_meta":{"origin":208618,"position":1},"title":"Delhi Court acquits accused under Section 138 NI Act on failure to establish debt adjustment","author":"Arunima","date":"March 8, 2024","format":false,"excerpt":"The complainant woefully failed to account for the amount of Rs 6,11,071\/- which was due on him towards the accused. Therefore, it cannot be said that the amount represented on the cheque in question was a legally recoverable debt.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"failure to establish debt adjustment","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/failure-to-establish-debt-adjustment.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/failure-to-establish-debt-adjustment.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/failure-to-establish-debt-adjustment.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/failure-to-establish-debt-adjustment.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":266804,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/05\/13\/law-on-liability-of-guarantor-dishonour-of-cheque-section-138-ni-act\/","url_meta":{"origin":208618,"position":2},"title":"Liability of Guarantor for Cheque Dishonour: Can lender enforce his right against either principal borrower or his guarantor? Dwarka Courts answers","author":"Bhumika Indulia","date":"May 13, 2022","format":false,"excerpt":"Dwarka Courts, Delhi: Rahul Jain, Metropolitan Magistrate, while addressing a matter regarding dishonour of cheque, held that mere assertion of non-receipt of legal notice cannot help the accused in escaping liability under Section 138 Negotiable Instruments Act, 1881. 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Chief Metropolitan Magistrate, Bengaluru City: Manjunatha, XVII Addl. C.M.M., found the accused guilty for the offence under Section 138 of the Negotiable Instruments Act, on his failure to rebut the statutory presumption in favour of the holder of cheque. Background The complainant had filed the instant complaint under\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/City-Civil-Court-Bengaluru.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/City-Civil-Court-Bengaluru.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/City-Civil-Court-Bengaluru.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/City-Civil-Court-Bengaluru.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2021\/05\/City-Civil-Court-Bengaluru.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":208819,"url":"https:\/\/www.scconline.com\/blog\/post\/2019\/01\/28\/mad-hc-unlawful-for-holder-of-cheque-to-fill-date-and-amount-in-blank-cheque-beyond-knowledge-of-accused-execution-of-cheque-explained\/","url_meta":{"origin":208618,"position":4},"title":"Madras HC | Unlawful for holder of cheque to fill date and amount in blank cheque beyond knowledge of accused; execution of cheque explained","author":"Bhumika Indulia","date":"January 28, 2019","format":false,"excerpt":"Madras High Court: The Bench of M.V. Muralidharan, J. upheld the order of respondent's\u00a0acquittal for an offence punishable under Section 138 of Negotiable Instruments Act, 1881 while holding that\u00a0\"the different ink, pen, and manipulation of the amount would show that the complainant had failed to demonstrate due execution of the\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":196495,"url":"https:\/\/www.scconline.com\/blog\/post\/2018\/05\/29\/convict-charged-under-s-138-ni-act-1881-acquitted-in-light-of-no-evidence\/","url_meta":{"origin":208618,"position":5},"title":"Accused charged under Section 138 NI Act, 1881, acquitted in light of \u201cno evidence\u201d","author":"Saba","date":"May 29, 2018","format":false,"excerpt":"Madras High Court: In a Single Judge Bench decision comprising of P. Kalaiyarasan, J., accused was acquitted of the charges under Section 138 of Negotiable Instruments Act, 1881, confirming the decision of the first appellate court. The brief facts of the case states that the complainant\/ appellant had given an\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/208618","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/8808"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=208618"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/208618\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=208618"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=208618"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=208618"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}