Court affirms conviction for dishonored cheque under Section 138 of Negotiable Instruments Act. The court upheld the lower courts' decisions, affirming the petitioner's conviction under Section 138 of the Negotiable Instruments Act. The dismissal of ...
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Court affirms conviction for dishonored cheque under Section 138 of Negotiable Instruments Act.
The court upheld the lower courts' decisions, affirming the petitioner's conviction under Section 138 of the Negotiable Instruments Act. The dismissal of the Criminal Revision case confirmed the fine imposed on the petitioner for issuing a dishonored cheque, as the petitioner failed to establish a legally enforceable debt and did not make any payment before the cheque's presentation for encashment. The court found no errors in the lower courts' rulings and upheld the conviction, resulting in the dismissal of the revision.
Issues: Petitioner challenging order under Section 138 of Negotiable Instruments Act.
Analysis: The petitioner borrowed Rs.1,00,000 for family expenses and issued a cheque, which was dishonored due to insufficient funds, leading to a complaint under Section 138 NI Act. The Trial Court found the petitioner guilty, imposing a fine of Rs.65,000 or two months imprisonment. The petitioner's appeal was dismissed, prompting this revision.
The petitioner argued that the respondent admitted receiving part payment but presented the full amount cheque, citing a Supreme Court judgment. However, the respondent clarified that the petitioner still owed Rs.65,000 after making a partial payment of Rs.35,000 while the complaint was pending. The Supreme Court ruling emphasized that for Section 138, the cheque must represent a legally enforceable debt on maturity, and any part payment must be endorsed on the cheque.
The court noted that the petitioner did not make any payment after issuing the cheque and before its presentation for encashment, failing to comply with Section 56 of the Act. The petitioner's failure to rebut the presumption against him due to established signatures on the cheque further strengthened the case. Both lower courts correctly convicted the petitioner under Section 138 NI Act, upholding the fine. Consequently, the revision was dismissed.
In conclusion, the court upheld the lower courts' decisions, finding no errors or illegalities. The dismissal of the Criminal Revision case affirmed the petitioner's conviction under Section 138 of the Negotiable Instruments Act.
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