Appeal Dismissed: Post-Dated Cheque Not Linked to Specific Liability; Acquittal Under N.I Act Sec. 138 Upheld. The appeal contesting the acquittal under Sec. 138 of the N.I Act was dismissed by the HC. The court determined that the post-dated cheque was not issued ...
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Appeal Dismissed: Post-Dated Cheque Not Linked to Specific Liability; Acquittal Under N.I Act Sec. 138 Upheld.
The appeal contesting the acquittal under Sec. 138 of the N.I Act was dismissed by the HC. The court determined that the post-dated cheque was not issued to settle any specific liability towards the complainant, as it was associated with an order for mixies that were not supplied. The appellant failed to substantiate the exact liability amount related to the cheque, leading to the conclusion that the acquittal was justified.
Issues: Acquittal under Section 138 of the N.I Act challenged; Dispute over liability for a post-dated cheque; Admissibility of evidence regarding liability admission; Interpretation of stop memo and order for mixies; Proof of liability amount in relation to the cheque.
Analysis: 1. The appeal challenges the acquittal of the respondent under Section 138 of the N.I Act. The complainant alleged that the respondent owed an amount due to credit purchases and issued a post-dated cheque, which bounced. The respondent claimed the cheque was for mixies not supplied by the complainant, as per an order and stop memo.
2. The lower court found that the cheque was not issued to discharge the accused's liability towards the complainant. The evidence was crucial in determining the nature of the transaction and the purpose of the cheque.
3. The appellant argued that evidence, including communications (Ext.D3 and Ext.P8), indicated the respondent's admission of liability towards the complainant. Despite the stop memo, the appellant contended that the cheque was intended to settle the existing liability, even if it was initially meant for the mixies order.
4. The order for mixies (Ext.D1) and the stop memo (Ext.D4) were pivotal in understanding the sequence of events. The stop memo was issued before the cheque date, indicating the respondent's intention not to honor the cheque due to non-supply of the ordered items. The appellant failed to prove the exact amount of liability in relation to the cheque.
5. The court concluded that the post-dated cheque was not issued to discharge the specific liability amount covered by it, which was for the mixies order. As the complainant did not prove the exact liability matching the cheque amount, the acquittal of the accused was deemed justified, and the appeal was dismissed.
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