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Issues: (i) Whether the cheque, though claimed to be a blank cheque and disputed as to liability, attracted the statutory presumptions under the Negotiable Instruments Act and whether the accused rebutted those presumptions; (ii) Whether the sentence of simple imprisonment required interference and alteration to fine.
Issue (i): Whether the cheque, though claimed to be a blank cheque and disputed as to liability, attracted the statutory presumptions under the Negotiable Instruments Act and whether the accused rebutted those presumptions.
Analysis: Once execution and signature on the cheque were admitted, the presumption under Section 118 and Section 139 of the Negotiable Instruments Act, 1881 operated in favour of the complainant that the cheque was issued for consideration and towards discharge of a debt or liability. A blank cheque voluntarily signed and handed over also attracts the statutory presumption unless cogent evidence shows that it was not issued in discharge of liability. The accused failed to establish a probable defence by reliable evidence, and the evidence of the defence witness did not displace the presumption.
Conclusion: The presumptions were not rebutted and the conviction under Section 138 of the Negotiable Instruments Act, 1881 was sustained.
Issue (ii): Whether the sentence of simple imprisonment required interference and alteration to fine.
Analysis: The offence under Section 138 of the Negotiable Instruments Act, 1881 is punishable with imprisonment or fine or both. While the conviction was upheld, the sentence was considered fit for modification in the facts of the case, and the punishment was altered to a sentence of fine with default imprisonment.
Conclusion: The sentence was altered to fine with default imprisonment, and time was granted for payment.
Final Conclusion: The revision succeeded only to the extent of sentence modification, while the finding of guilt under Section 138 of the Negotiable Instruments Act, 1881 remained undisturbed.
Ratio Decidendi: Admission of signature on a cheque raises the statutory presumption that it was issued for discharge of a debt or liability, and a blank signed cheque also attracts that presumption unless the drawer rebuts it by cogent evidence.
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