TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the criminal complaint under Section 138 of the Negotiable Instruments Act, 1881 and the order issuing process could be quashed under Section 482 of the Code of Criminal Procedure, 1973 on the basis of the defence that the cheque was issued as security and that the liability had already been discharged.
Analysis: The cheque and the signature of the accused were admitted, and the cheque had been dishonoured for insufficiency of funds. In such circumstances, the presumption under Section 139 of the Negotiable Instruments Act, 1881 operated in favour of the complainant that the cheque was issued towards a legally enforceable debt or liability. That presumption is rebuttable, but rebuttal requires evidence. The plea that the cheque was only a security cheque, and the assertion that payments had already been made, raised disputed questions of fact which could not be decided in a petition under Section 482 of the Code of Criminal Procedure, 1973 without trial. The materials relied upon by the accused needed proof before the trial court.
Conclusion: The quashing prayer was not made out, and the complaint as well as the order issuing process were sustained.
Ratio Decidendi: Where execution of the cheque is admitted in a prosecution under Section 138 of the Negotiable Instruments Act, 1881, the statutory presumption of a legally enforceable debt arises, and a defence of security cheque or prior payment cannot ordinarily be accepted in inherent jurisdiction unless the presumption is rebutted by evidence.
TaxTMI 
TaxTMI 
