{"id":316446,"date":"2024-03-08T10:00:14","date_gmt":"2024-03-08T04:30:14","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=316446"},"modified":"2024-03-14T14:32:15","modified_gmt":"2024-03-14T09:02:15","slug":"delhi-court-acquits-accused-under-section-138-negotiable-instruments-act-failure-establish-debt-adjustment-legal-news","status":"publish","type":"post","link":"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\/","title":{"rendered":"Delhi Court acquits accused under Section 138 NI Act on failure to establish debt adjustment"},"content":{"rendered":"
\n

Dwarka Courts, Delhi:<\/span> A complaint was filed by the complainant against the accused under Section 138 of the NI Act challenging the dishonour of cheque due to insufficient funds in the accused’s account. Apoorv Bhardwaj, J., held that the accused is not guilty of offence under Section 138<\/a> of Negotiable Instruments Act, 1881<\/a> and accordingly acquitted him under Section 138<\/a> of Negotiable Instruments Act, 1881<\/a>.<\/p>\n

The case revolved around a dispute concerning a cheque issued by the accused, Ghanshyam Sharma, to the complainant, Ashok Tayal. The complainant alleged that the accused issued the cheque in discharge of a debt or liability but subsequently failed to honor it upon presentation to the bank. Consequently, the complainant initiated legal proceedings under Section 138<\/a> of the Negotiable Instruments Act, 1881<\/a> (NI Act) against the accused. Subsequently, the complainant issued a legal notice to the accused demanding payment of the cheque amount. When the accused failed to make the payment within the stipulated period, the complainant filed a case against him under Section 138 of the NI Act. The complainant contended that the accused’s failure to honor the cheque constituted an offense under Section 138 of the NI Act.<\/p>\n

Counsel for the accused presented a defense challenging the existence of a valid debt or liability. He claimed that the amount represented on the cheque was not a loan but rather an adjustment of hire charges for trucks provided by him to Shri Shyam Transport Co., which was allegedly run by the complainant. The counsel asserted that the complainant was the proprietor of Shri Shyam Transport Co. and owed him a substantial sum for the rental of trucks.<\/p>\n

The court conducted a thorough analysis of the evidence presented by both parties. It meticulously examined witness testimonies, documentary evidence, and legal principles governing negotiable instruments. The court scrutinized the validity of the debt claimed by the complainant and the alleged agreement between the parties regarding the adjustment of hire charges. The court observed inconsistencies in the complainant’s testimony regarding his association with Shri Shyam Transport Co. It found credible evidence supporting the accused’s claim that the complainant was indeed the proprietor of the company and owed him a significant sum for truck rentals.<\/p>\n

Despite the complainant’s claim that the cheque was issued to discharge a debt, the accused successfully argued that the loan amount was offset by the hire charges for trucks provided to the complainant’s transport company. This assertion was supported by substantial evidence, including payment vouchers and witness testimony, undermining the complainant’s claim that the cheque was issued solely for debt repayment. The Court noted the absence of a written agreement between the parties regarding the adjustment of hire charges against the loan amount. While the complainant denied any such agreement, the accused provided compelling evidence, including invoices and contractual agreements, indicating that the hire charges were indeed intended to offset the debt. Despite the lack of a written agreement, the Court found the accused’s evidence convincing and concluded that the complainant failed to establish the existence of a legally recoverable debt.<\/p>\n

The Court remarked that “The complainant has 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. In simpler terms, the accused claimed that the loan was offset by the rental charges for his trucks provided to Shri Shyam Transport Co. The complainant, however, denied any association with Shri Shyam Transport Co. This denial was proven false, and it was established that Shri Ram Transport Co., and consequently the complainant, owed the accused approximately Rs 6 lakh. When this amount was offset against the alleged loan, the sum represented on the cheque far exceeded the legal liability of the accused, effectively countering the presumption against him.”<\/span><\/p>\n

Thus, the court held that the accused successfully rebutted the presumption against him and found that the amount represented on the cheque was not a legally recoverable debt owed by the accused to the complainant. Consequently, the court acquitted the accused of the offense under Section 138 of the NI Act.<\/p>\n

[Ashok Tayal v. Ghanshyam Sharma, 2024 SCC OnLine Dis Crt (Del) 5<\/a>, decided on 04-03-2024<\/span>]<\/p>\n\n

Advocates who appeared in this case :<\/p>\n

Mr Udham Singh Yadav for the complainant<\/p>\n

Mr Sahil Mongia, Sh. Rahul Yadav and Sh. Sahil Rao, for the accused<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

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.<\/p>\n","protected":false},"author":67516,"featured_media":316450,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,4721],"tags":[32256,2862,33385,33343,30606,66182,9441],"class_list":["post-316446","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-district-court","tag-complainant","tag-dishonour_of_cheque","tag-insufficient-funds","tag-legal-notice","tag-ni-act","tag-payment-demand","tag-section-138"],"yoast_head":"\nDelhi Court acquitted in Section 138 NI accused on failure to establish debt adjustment| SCC Times<\/title>\n<meta name=\"description\" content=\"Delhi Court acquitted in accused u\/S. 138 Negotiable Instrument Act on failure to establish debt adjustment.\" \/>\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\/2024\/03\/08\/delhi-court-acquits-accused-under-section-138-negotiable-instruments-act-failure-establish-debt-adjustment-legal-news\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Delhi Court acquits accused under Section 138 NI Act on failure to establish debt adjustment\" \/>\n<meta property=\"og:description\" content=\"Delhi Court acquitted in accused u\/S. 138 Negotiable Instrument Act on failure to establish debt adjustment.\" \/>\n<meta property=\"og:url\" content=\"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\/\" \/>\n<meta property=\"og:site_name\" content=\"SCC Times\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/scc.online\/\" \/>\n<meta property=\"article:published_time\" content=\"2024-03-08T04:30:14+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-03-14T09:02:15+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/failure-to-establish-debt-adjustment.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"887\" \/>\n\t<meta property=\"og:image:height\" content=\"590\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"Arunima\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Delhi Court acquits accused under Section 138 NI Act on failure to establish debt adjustment\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Arunima\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"4 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"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\":\"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\/\",\"name\":\"Delhi Court acquitted in Section 138 NI accused on failure to establish debt adjustment| SCC Times\",\"isPartOf\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/#website\"},\"primaryImageOfPage\":{\"@id\":\"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\/#primaryimage\"},\"image\":{\"@id\":\"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\/#primaryimage\"},\"thumbnailUrl\":\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/failure-to-establish-debt-adjustment.webp\",\"datePublished\":\"2024-03-08T04:30:14+00:00\",\"dateModified\":\"2024-03-14T09:02:15+00:00\",\"author\":{\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/12b21fd8f65a572f39f27151710e16cb\"},\"description\":\"Delhi Court acquitted in accused u\/S. 138 Negotiable Instrument Act on failure to establish debt adjustment.\",\"breadcrumb\":{\"@id\":\"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\/#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"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\/\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"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\/#primaryimage\",\"url\":\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/failure-to-establish-debt-adjustment.webp\",\"contentUrl\":\"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/failure-to-establish-debt-adjustment.webp\",\"width\":887,\"height\":590,\"caption\":\"failure to establish debt adjustment\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"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\/#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.scconline.com\/blog\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Delhi Court acquits accused under Section 138 NI Act on failure to establish debt adjustment\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#website\",\"url\":\"https:\/\/www.scconline.com\/blog\/\",\"name\":\"SCC Times\",\"description\":\"Bringing you the Best Analytical Legal News\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.scconline.com\/blog\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/12b21fd8f65a572f39f27151710e16cb\",\"name\":\"Arunima\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/8375ad8b08b1cbd970f4484d3218d81f3222a0ee3e463210f657780cb13e9569?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/8375ad8b08b1cbd970f4484d3218d81f3222a0ee3e463210f657780cb13e9569?s=96&d=mm&r=g\",\"caption\":\"Arunima\"},\"url\":\"https:\/\/www.scconline.com\/blog\/post\/author\/scc-editor_9\/\"}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Delhi Court acquitted in Section 138 NI accused on failure to establish debt adjustment| SCC Times","description":"Delhi Court acquitted in accused u\/S. 138 Negotiable Instrument Act on failure to establish debt adjustment.","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"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\/","og_locale":"en_US","og_type":"article","og_title":"Delhi Court acquits accused under Section 138 NI Act on failure to establish debt adjustment","og_description":"Delhi Court acquitted in accused u\/S. 138 Negotiable Instrument Act on failure to establish debt adjustment.","og_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\/","og_site_name":"SCC Times","article_publisher":"https:\/\/www.facebook.com\/scc.online\/","article_published_time":"2024-03-08T04:30:14+00:00","article_modified_time":"2024-03-14T09:02:15+00:00","og_image":[{"width":887,"height":590,"url":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/failure-to-establish-debt-adjustment.jpg","type":"image\/jpeg"}],"author":"Arunima","twitter_card":"summary_large_image","twitter_title":"Delhi Court acquits accused under Section 138 NI Act on failure to establish debt adjustment","twitter_misc":{"Written by":"Arunima","Est. reading time":"4 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"WebPage","@id":"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":"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\/","name":"Delhi Court acquitted in Section 138 NI accused on failure to establish debt adjustment| SCC Times","isPartOf":{"@id":"https:\/\/www.scconline.com\/blog\/#website"},"primaryImageOfPage":{"@id":"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\/#primaryimage"},"image":{"@id":"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\/#primaryimage"},"thumbnailUrl":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/failure-to-establish-debt-adjustment.webp","datePublished":"2024-03-08T04:30:14+00:00","dateModified":"2024-03-14T09:02:15+00:00","author":{"@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/12b21fd8f65a572f39f27151710e16cb"},"description":"Delhi Court acquitted in accused u\/S. 138 Negotiable Instrument Act on failure to establish debt adjustment.","breadcrumb":{"@id":"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\/#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["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\/"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"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\/#primaryimage","url":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/failure-to-establish-debt-adjustment.webp","contentUrl":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/failure-to-establish-debt-adjustment.webp","width":887,"height":590,"caption":"failure to establish debt adjustment"},{"@type":"BreadcrumbList","@id":"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\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.scconline.com\/blog\/"},{"@type":"ListItem","position":2,"name":"Delhi Court acquits accused under Section 138 NI Act on failure to establish debt adjustment"}]},{"@type":"WebSite","@id":"https:\/\/www.scconline.com\/blog\/#website","url":"https:\/\/www.scconline.com\/blog\/","name":"SCC Times","description":"Bringing you the Best Analytical Legal News","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.scconline.com\/blog\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/12b21fd8f65a572f39f27151710e16cb","name":"Arunima","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.scconline.com\/blog\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/8375ad8b08b1cbd970f4484d3218d81f3222a0ee3e463210f657780cb13e9569?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/8375ad8b08b1cbd970f4484d3218d81f3222a0ee3e463210f657780cb13e9569?s=96&d=mm&r=g","caption":"Arunima"},"url":"https:\/\/www.scconline.com\/blog\/post\/author\/scc-editor_9\/"}]}},"jetpack_featured_media_url":"https:\/\/www.scconline.com\/blog\/wp-content\/uploads\/2024\/03\/failure-to-establish-debt-adjustment.webp","jetpack_sharing_enabled":true,"jetpack-related-posts":[{"id":261806,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/02\/16\/dishonour-of-cheque-8\/","url_meta":{"origin":316446,"position":0},"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? Tis Hazari Court decodes","author":"Bhumika Indulia","date":"February 16, 2022","format":false,"excerpt":"Tis Hazari Courts, New Delhi: While deciding a matter under Section 138 of the negotiable Instruments Act, 1881, Devanshu Sajlan, MM-05 (NI Act) reiterated the settled position of law that there is no concept of vicarious liability in case of a sole proprietorship concern since a sole proprietorship concern does\u2026","rel":"","context":"In "Case Briefs"","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Tis-hazari","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/08\/Tis-hazari.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":316446,"position":1},"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":255796,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/10\/18\/dishonour-of-cheque-3\/","url_meta":{"origin":316446,"position":2},"title":"Mere denial is useless, Presumption under S. 138 NI Act can be rebutted only by leading cogent evidence: Court holds accused guilty where “payment stopped by drawer”","author":"Bhumika Indulia","date":"October 18, 2021","format":false,"excerpt":"Saket Courts, New Delhi: Swati Gupta, Metropolitan Magistrate reiterated what is expected of an accused to rebut the statutory presumption against him in cases of cheque dishonour under Section 138 of the Negotiable Instruments Act, 1881. Brief facts Complainant and accused had entered into an agreement to sell the property\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":208618,"url":"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\/","url_meta":{"origin":316446,"position":3},"title":"Madras HC | Presumption under S. 139 NI Act in favour of holder of cheque arises once its execution is admitted by accused","author":"Bhumika Indulia","date":"January 23, 2019","format":false,"excerpt":"Madras High Court:\u00a0The 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. The complainant and 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":264749,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/03\/30\/dishonour-of-cheque-10\/","url_meta":{"origin":316446,"position":4},"title":"Can Director of a company be automatically, vicariously liable for commission of an offence on behalf of company under S. 138 NI Act? Patiala House Courts answers","author":"Bhumika Indulia","date":"March 30, 2022","format":false,"excerpt":"Patiala House Courts, New Delhi: Shreya Arora Mehta, Metropolitan Magistrate, while addressing a matter with regard to Section 138 of the Negotiable Instruments Act stressed the liability of a Director for such offences. 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":255614,"url":"https:\/\/www.scconline.com\/blog\/post\/2021\/10\/14\/law-on-dishonour-of-cheque\/","url_meta":{"origin":316446,"position":5},"title":"Law on Dishonour of Cheque | Loan given in cash, no documentary evidence available. Lender files a complaint under S. 138 NI Act: Read how \u2018presumption\u2019 under S. 118 (a) plays a role","author":"Bhumika Indulia","date":"October 14, 2021","format":false,"excerpt":"Patiala House Courts, New Delhi: Prayank Nayak, MM-01 acquitted the accused of offence under Section 138 (dishonour of cheque) of the Negotiable Instruments Act, 1885, holding that the accused successfully dislodged the statutory presumption. In the present matter, complaint was filed under Section 138 of the Negotiable Instruments Act, 1881\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":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/316446","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\/67516"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=316446"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/316446\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/316450"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=316446"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=316446"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=316446"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}