{"id":250568,"date":"2021-07-01T10:00:20","date_gmt":"2021-07-01T04:30:20","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=250568"},"modified":"2021-07-09T10:42:35","modified_gmt":"2021-07-09T05:12:35","slug":"drawers-signature-differs","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2021\/07\/01\/drawers-signature-differs\/","title":{"rendered":"Madras HC | Cheque returned with endorsement &#8220;drawers signature differs&#8221;. If complainant fails to prove accused was not stranger, can he still be prosecuted under S. 138 NI Act? Court answers"},"content":{"rendered":"<p style=\"text-align: justify;\"><strong>Madras High Court: <\/strong>P. Velmurugan, J., addressed a matter revolving around the offence under Section 138 of the Negotiable Instruments Act.<\/p>\n<p style=\"text-align: justify;\">A complaint was filed for an alleged offence under Section 138 of the Negotiable Instruments Act, 1881. Judicial Magistrate found the respondent guilty of offence under Section 138 NI Act.<\/p>\n<p style=\"text-align: justify;\">The appellate Judge while allowing the respondent\u2019s appeal set aside the conviction and acquitted the respondent for the offence punishable under Section 138 NI Act, for which he was prosecuted before the trial court.<\/p>\n<p style=\"text-align: justify;\">Appellant\u2019s case was that the respondent had borrowed a sum of Rs 90,000 from the appellant and in order to discharge the debt issued a cheque which returned when presented to the bank with endorsement <em>\u201cdrawers signatures differs\u201d.<\/em><\/p>\n<h3 style=\"text-align: justify;\"><span style=\"color: #0000ff;\">Analysis, Law and Decision<\/span><\/h3>\n<p style=\"text-align: justify;\">Bench noted that on statutory notice sent by appellant, respondent responded stating that he had denied the execution of the cheque.<\/p>\n<p style=\"text-align: justify;\">Another significant fact was that the appellant did not prove that there was a transaction between the appellant and the respondent.<\/p>\n<p style=\"text-align: justify;\">High Court remarked that,<\/p>\n<p style=\"text-align: justify;\"><em>When the cheque was returned for the reason that the signature differs, and the respondent\/accused has taken a stand that the complainant is a stranger to the accused, it is for the appellant\/complainant to establish the case and the appellant has not proved the same, and if once, execution of cheque is proved, the presumption under Sections 118 and 139 of the Negotiable Instruments Act can be drawn and the accused has to rebut the presumption that there is no legally enforceable debt and cheque has not been issued for legally enforceable debt.<\/em><\/p>\n<p style=\"text-align: justify;\"><em>\u00a0<\/em>Hence, in the present matter, complainant could not establish the execution of the cheque and borrowal of money by the respondent.<\/p>\n<p style=\"text-align: justify;\">Therefore, in Court\u2019s opinion the appellate Court\u2019s decision had no perversity and Bench found no compelled circumstances or reason to interfere with the Judgment of acquittal.<\/p>\n<p style=\"text-align: justify;\">In view of the above-stated facts and circumstances, criminal appeal was dismissed. [S. Ashok Kumar v. S. Boopal,\u00a0 <a href=\"http:\/\/www.scconline.com\/DocumentLink\/VsoMaY7A\"><b>2021 SCC OnLine Mad 2325<\/b><\/a>, decided on 22-04-2021]<\/p>\n<hr \/>\n<p style=\"text-align: justify;\"><strong>Advocates before the Court:<\/strong><\/p>\n<p style=\"text-align: justify;\">For Appellant : Mr. M. Marudhachalam<\/p>\n<p style=\"text-align: justify;\">For Respondent: Mr. L.Mouli<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Madras High Court: P. Velmurugan, J., addressed a matter revolving around the offence under Section 138 of the Negotiable Instruments Act. A <\/p>\n","protected":false},"author":8808,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[4561,2862,46399,29785,42834,42768,2567,3659,23584],"class_list":["post-250568","post","type-post","status-publish","format-standard","hentry","category-casebriefs","category-highcourts","tag-acquittal","tag-dishonour_of_cheque","tag-execution-of-cheque","tag-law","tag-legal-news","tag-legal-updates","tag-Madras_High_Court","tag-notice","tag-section-138-ni-act"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v27.4 (Yoast SEO v27.4) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>Madras HC | Cheque returned with endorsement &quot;drawers signature differs&quot;. If complainant fails to prove accused was not stranger, can he still be prosecuted under S. 138 NI Act? 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HC answers","author":"Bhumika Indulia","date":"February 11, 2021","format":false,"excerpt":"Madras High Court: P.N. Prakash, J., decided a criminal original petition addressing an issue with regard to an offence under Section 138 of Negotiable Instruments Act, 1881. Sree Gokulam Chits and Finance Corporation Private Limited initiated prosecution in the Court of Judicial Magistrate for the offence under Section 138 of\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":338352,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/01\/03\/andhra-pradesh-hc-quashes-138-ni-act-case-invalid-cheque-merged-bank-legal-news\/","url_meta":{"origin":250568,"position":2},"title":"Andhra Pradesh High Court quashes NI Act proceedings due to invalid cheque issued from merged bank","author":"Arunima","date":"January 3, 2025","format":false,"excerpt":"Andhra Pradesh High Court quashed proceedings under Section 138 NI Act, ruling that the dishonor of a cheque issued on a State Bank of Hyderabad account, rendered invalid due to the bank\u2019s merger with SBI and expiry of its validity in March 2018, does not attract liability under the NI\u2026","rel":"","context":"In &quot;Case Briefs&quot;","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":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":250568,"position":3},"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 &quot;Case Briefs&quot;","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":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":250568,"position":4},"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 &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":366851,"url":"https:\/\/www.scconline.com\/blog\/post\/2025\/11\/15\/section-138-ni-act-cheque-bounce-notice\/","url_meta":{"origin":250568,"position":5},"title":"Section 138 of NI Act Explained: Cheque Bounce Notice, Procedure &amp; Landmark Rulings","author":"Shriya Singh","date":"November 15, 2025","format":false,"excerpt":"This article aims to explain the legal framework governing cheque dishonour under Section 138 of the NI Act, with particular focus on the significance, format, and essentials of a cheque bounce notice. It also highlights key judicial developments shaping the interpretation of these provisions.","rel":"","context":"In &quot;Law made Easy&quot;","block_context":{"text":"Law made Easy","link":"https:\/\/www.scconline.com\/blog\/post\/category\/law-made-easy\/"},"img":{"alt_text":"Section 138 NI Act","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/Section-138-NI-Act.webp?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/Section-138-NI-Act.webp?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/Section-138-NI-Act.webp?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2025\/11\/Section-138-NI-Act.webp?resize=700%2C400&ssl=1 2x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/250568","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=250568"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/250568\/revisions"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=250568"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=250568"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=250568"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}