{"id":216358,"date":"2019-07-02T14:25:34","date_gmt":"2019-07-02T08:55:34","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=216358"},"modified":"2019-07-04T12:28:12","modified_gmt":"2019-07-04T06:58:12","slug":"ker-hc-any-acknowledgment-voluntarily-signed-towards-some-payment-attracts-presumption-under-s-139-of-ni-act-acquittal-set-aside","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2019\/07\/02\/ker-hc-any-acknowledgment-voluntarily-signed-towards-some-payment-attracts-presumption-under-s-139-of-ni-act-acquittal-set-aside\/","title":{"rendered":"Ker HC | Any acknowledgment voluntarily signed towards some payment, attracts presumption under S. 139 of NI Act; acquittal set aside"},"content":{"rendered":"

Kerala High Court<\/strong>: Instant appeal was contemplated against acquittal order of the accused under Section 138 of the Negotiable Instruments Act, 1881 by a Single Judge Bench of N. Anil Kumar, J.<\/p>\n

The accused borrowed a certain amount from the complainant and also issued a cheque towards repayment in the name of the complainant. Subsequently, the cheque was dishonored and the reason cited was \u2018insufficient funds\u2019. Complainant advanced his argument on the basis of the notice which he served upon the accused earlier after the cheque was dishonored. It is further contended that the accused, however, did not reply to the notice nor did he pay the cheque amount to the complainant. The complainant filed a criminal complaint under Section 138 of the NI Act before the Court below.<\/p>\n

The counsel for the complainant, K. Babu and Johnson Gomez submitted that on service of summons by the trial Court, the accused appeared and did not plead guilty. The accused cited that he had borrowed a sum of Rs 10,000 from the father of the complainant. He further contended that the said amount was returned. That apart, he contended that the cheque leaves which he gave as security were not returned when the amount was paid back. According to him, he had no account with the said bank of which the complainant had presented the unpaid cheque. It was the father of the complainant who introduced him in the said Bank for the purpose of opening an account there. In support of his contentions, he produced his passbook and the other relevant evidences. The trial Court on the basis of the evidence and on the testimony of the witnesses accepted the contention of the accused and acquitted him, therefore.<\/p>\n

The Court observed that in order to determine the question whether offence punishable under Section 138 of the Act was made out against the accused, it was foremost necessary to examine the Penal provision of Section 138 of the Act and the presumptions to be raised as envisaged by the provisions of Sections 118 and 139 of the Act. It further stated that in the trial under Section 138, a presumption was to be made that every negotiable instrument was made or drawn for consideration and that it was executed for the discharge of debt or liability once the execution of negotiable instrument was either proved or admitted. When the complainant discharged the burden to prove that the cheque was executed by the accused, the rules of presumptions under Sections 118 and 139 were very much available to the complainant and the burden shifted on the accused. However, this presumption was rebuttable. Under the circumstances, it was the duty of the accused before the court by adducing that the cheque was not supported by consideration and that there was no debt or liability to be discharged as alleged.<\/p>\n

An appeal was allowed and the judgment of the trial court was set aside the Court held that, \u201cthe trial court patently erred in holding that the burden was on the complainant to prove that he had advanced the loan and the blank cheque was given to him in repayment of the same, the finding of the trial court that the case of the complainant is not proved beyond reasonable doubt is perverse<\/em>.\u201d[Manesh Varghese v. Sainulabudeen, 2019 SCC OnLine Ker 2029<\/b><\/a>, decided on 25-06-2019]<\/p>\n","protected":false},"excerpt":{"rendered":"

Kerala High Court: Instant appeal was contemplated against acquittal order of the accused under Section 138 of the Negotiable Instruments Act, 1881 <\/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":[36395,28514,32534,36396],"class_list":["post-216358","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-acquittal-order","tag-cheque","tag-section-138-of-negotiable-instruments-act","tag-sections-118-and-139-of-ni-act"],"yoast_head":"\nKer HC | Any acknowledgment voluntarily signed towards some payment, attracts presumption under S. 139 of NI Act; acquittal set aside | 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\/07\/02\/ker-hc-any-acknowledgment-voluntarily-signed-towards-some-payment-attracts-presumption-under-s-139-of-ni-act-acquittal-set-aside\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Ker HC | Any acknowledgment voluntarily signed towards some payment, attracts presumption under S. 139 of NI Act; 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The cheque issued for repayment bounced due to insufficient funds.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Andhra Pradesh High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Andhra-Pradesh-High-Court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Andhra-Pradesh-High-Court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Andhra-Pradesh-High-Court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/02\/Andhra-Pradesh-High-Court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":308042,"url":"https:\/\/www.scconline.com\/blog\/post\/2023\/11\/29\/calcutta-high-court-upholds-acquittal-under-section-138-of-negotiable-instruments-act-1881-scc-blog\/","url_meta":{"origin":216358,"position":1},"title":"Calcutta High Court upholds acquittal under Section 138 of NI Act on failure to prove existence of legally enforceable debt","author":"Ritu","date":"November 29, 2023","format":false,"excerpt":"Calcutta High Court delved into the legalities surrounding the presumption under Section 139 of the Negotiable Instruments Act, 1881, emphasizing that it is a \u201crebuttable presumption\u201d.","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"calcutta high court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2023\/04\/calcutta-high-court.webp?resize=700%2C400&ssl=1 2x"},"classes":[]},{"id":258158,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/12\/06\/dishonour-of-cheque-6\/","url_meta":{"origin":216358,"position":2},"title":"When does burden of proof shift to accused to rebut statutory presumption in cheque bounce cases under S. 138 NI Act? 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":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":216358,"position":3},"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":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":216358,"position":4},"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":364043,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/10\/16\/rajasthan-hc-section-138-ni-act-on-cheque-for-time-barred-debt-revives-enforceability-under-contract-act\/","url_meta":{"origin":216358,"position":5},"title":"Cheque for Time-Barred Debt Revives Enforceability Under S. 25(3) Contract Act; Dishonour attracts Section 138 NI Act: Rajasthan High Court","author":"Editor","date":"October 16, 2025","format":false,"excerpt":"\u201cA meaningful reading of Sections 20, 118 and 139 of the NI Act makes it clear that a person who signs a cheque and delivers it to the payee remains liable unless he successfully rebuts the statutory presumptions.\u201d","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Section 138 NI Act on Cheque for Time-Barred Debt","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Section-138-NI-Act-on-Cheque-for-Time-Barred-Debt.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Section-138-NI-Act-on-Cheque-for-Time-Barred-Debt.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Section-138-NI-Act-on-Cheque-for-Time-Barred-Debt.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/10\/Section-138-NI-Act-on-Cheque-for-Time-Barred-Debt.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/216358","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=216358"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/216358\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=216358"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=216358"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=216358"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}