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Issues: (i) Whether the conviction for the offence under Section 138 of the Negotiable Instruments Act was erroneous. (ii) Whether the sentence of fine and compensation was excessive.
Issue (i): Whether the conviction for the offence under Section 138 of the Negotiable Instruments Act was erroneous.
Analysis: The cheque and signature were not in dispute. The accused set up a defence that the cheque had been issued in an earlier transaction and misused later, but no material was produced to substantiate that version. No cheque issue register, counterfoil, complaint, or demand for return of the cheque was shown, and no reply was sent to the statutory notice. In the absence of credible rebuttal, the statutory presumption attached to the cheque transaction remained intact.
Conclusion: The conviction under Section 138 of the Negotiable Instruments Act was upheld and the challenge failed.
Issue (ii): Whether the sentence of fine and compensation was excessive.
Analysis: The sentence consisted of fine equivalent to the cheque amount, with a part directed as compensation and a small portion remitted to the State. Since the defence was not established and the cheque amount itself was taken as the basis for compensation, the sentence was found proportionate to the offence and circumstances.
Conclusion: The sentence was held not to be excessive and required no interference.
Final Conclusion: The revision failed on merits, the conviction and sentence were maintained, and only time was extended for payment of the fine amount.
Ratio Decidendi: When execution of the cheque is admitted and the accused fails to rebut the statutory presumption by reliable evidence, conviction under Section 138 of the Negotiable Instruments Act is sustainable, and a sentence based on the cheque amount cannot be treated as excessive merely because the accused disputes liability.
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