{"id":212516,"date":"2019-03-28T12:00:06","date_gmt":"2019-03-28T06:30:06","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=212516"},"modified":"2019-03-30T12:47:01","modified_gmt":"2019-03-30T07:17:01","slug":"madras-hc-presumption-under-s-139-ni-act-not-available-in-case-of-principal-agent-relationship-between-accused-and-complainant","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/03\/28\/madras-hc-presumption-under-s-139-ni-act-not-available-in-case-of-principal-agent-relationship-between-accused-and-complainant\/","title":{"rendered":"Madras HC | Presumption under S. 139 NI Act not available in case of principal-agent relationship between accused and complainant"},"content":{"rendered":"

Madras High Court:\u00a0<\/strong>G. Jayachandran, J., dismissed an appeal directed against the judgment of the first Appellate Court whereby it had reversed the conviction and sentence of the respondent-accused awarded by the trial court for an offence\u00a0punishable under Section 138 of the Negotiable Instruments Act, 1881 (dishonour of cheque<\/em>).<\/p>\n

As per the appellant-complainant, he had lent Rs 10 lakhs\u00a0to the accused, who issued three cheques in his favour for discharging his liability. However, on presentation to the bank, the cheques were returned dishonoured\u00a0with an endorsement “account closed”. Subsequent to codal\u00a0formalities, a case was filed against the accused and the trial court convicted him for an offence punishable under Section 138. On appeal by the accused, the first Appellate Court acquitted him. Aggrieved thereby, the complainant filed the present appeal.<\/p>\n

The High Court noted that the first Appellate Court found that the cheques in question were given to the complainant for payment of taxes and compensation to tenants for vacating certain premises. And a criminal complaint was also filed against the complainant for misappropriation of blank cheques and jewels. On perusing the record, the Court held that a principal-agent relationship was clearly established between the parties. It was observed,\u00a0“When there is principal-agent relationship, unless and until the material evidence are placed\u00a0to prove legally enforceable debt, mere issuance of cheques cannot lead to the presumption under Section 139 of the Negotiable Instruments Act.”\u00a0<\/strong>Stating that the trial court failed to properly consider the defense exhibits, the Court held that there was no merit in the appeal and the impugned order passed by the first Appellate Court required no interference. [G. Dhanasekar v. T.A. Jayaprakash, 2019 SCC OnLine Mad 820<\/b><\/a>, decided on 19-03-2019]<\/p>\n","protected":false},"excerpt":{"rendered":"

Madras High Court:\u00a0G. Jayachandran, J., dismissed an appeal directed against the judgment of the first Appellate Court whereby it had reversed the <\/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":[32256,2862,34566,34565],"class_list":["post-212516","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-complainant","tag-dishonour_of_cheque","tag-principal-agent","tag-section-139-negotiable-instruments-act"],"yoast_head":"\nMadras HC | Presumption under S. 139 NI Act not available in case of principal-agent relationship between accused and complainant | 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\/03\/28\/madras-hc-presumption-under-s-139-ni-act-not-available-in-case-of-principal-agent-relationship-between-accused-and-complainant\/\" \/>\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 not available in case of principal-agent relationship between accused and complainant\" \/>\n<meta property=\"og:description\" content=\"Madras High Court:\u00a0G. 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Accused Company through accused 2 \u2013 Chairman cum Managing Director along with accused 3 its Managing Director\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Patiala House Courts, Delhi","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/03\/patialacourt.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/03\/patialacourt.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/03\/patialacourt.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/03\/patialacourt.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/03\/patialacourt.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":257091,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/11\/15\/dishonour-of-cheques-2\/","url_meta":{"origin":212516,"position":1},"title":"Dishonour of Cheque | Not filling details in cheque, Non-filing of ITR by complainant, Handing over cheque as security, etc.: Delhi Court discards all defence, orders conviction under S. 138 NI Act \u00a0","author":"Bhumika Indulia","date":"November 15, 2021","format":false,"excerpt":"Saket Courts, Delhi: Swati Gupta, Metropolitan Magistrate (South) NI Act, convicted the accused for an offence under Section 138 (dishonour of cheque) of the Negotiable Instruments Act, 1881. While delivering the judgment, the Court reiterated the well-settled position of law and discarded various defence taken by the accused. Factual Matrix\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Saket Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/08\/District-Court-Saket.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/08\/District-Court-Saket.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/08\/District-Court-Saket.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/08\/District-Court-Saket.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2020\/08\/District-Court-Saket.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":240707,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/12\/15\/bom-hc-does-ni-act-authorises-a-complaintant-to-fill-an-incomplete-cheque-court-discusses-while-reversing-acquittal-of-accused-under-s-138-ni-act\/","url_meta":{"origin":212516,"position":2},"title":"Bom HC | Does NI Act authorises a complainant to fill an incomplete cheque? Court discusses while reversing acquittal of accused under S. 138 NI Act","author":"Bhumika Indulia","date":"December 15, 2020","format":false,"excerpt":"Bombay High Court:\u00a0Vibha Kankanwadi, J., reversed the acquittal of the respondent-accused holding him guilty of having committed an offence under Section 138 (dishonour of cheque) of the Negotiable Instruments Act, 1881. Facts on record The complainant had come with a case wherein he stated he had friendly relations with 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":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2016\/09\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"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":212516,"position":3},"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. It was alleged in complaint that accused had approached the complainant to\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\/2019\/06\/Dwarka-Court.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/06\/Dwarka-Court.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/06\/Dwarka-Court.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/06\/Dwarka-Court.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2019\/06\/Dwarka-Court.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":261806,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/02\/16\/dishonour-of-cheque-8\/","url_meta":{"origin":212516,"position":4},"title":"Can only a sole proprietor be held liable under S. 138 NI Act for dishonour of cheque drawn on account of sole proprietorship concern? 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