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Issues: (i) Whether the appellate court misapplied the burden of proof under Sections 138 and 139 of the Negotiable Instruments Act, 1881; (ii) Whether the sentence imposed under Section 138 of the Negotiable Instruments Act, 1881 was illegal for want of compliance with the prescribed punishment; (iii) Whether the revision was liable to fail on the technical objection that the common order ought to have been challenged by separate petitions.
Issue (i): Whether the appellate court misapplied the burden of proof under Sections 138 and 139 of the Negotiable Instruments Act, 1881.
Analysis: The complaint established the foundational ingredients of the offence: issuance of the cheque, its presentation, return unpaid for insufficiency of funds, service of notice, and non-payment within the statutory period. Once the drawer admitted her signature on the cheque, the statutory presumption under Section 139 was attracted and the evidential burden shifted to the accused to rebut the presumption that the cheque was issued in discharge of a legally enforceable debt or liability. The accused did not enter the witness-box and the defence evidence did not satisfactorily displace the presumption. The appellate court therefore erred in placing the burden on the complainant to prove outstanding dues in the manner it did.
Conclusion: The finding of the appellate court on burden of proof was set aside and the accused was held to have failed to rebut the statutory presumption.
Issue (ii): Whether the sentence imposed under Section 138 of the Negotiable Instruments Act, 1881 was illegal for want of compliance with the prescribed punishment.
Analysis: Section 138 authorises imprisonment up to two years, or fine up to twice the cheque amount, or both. The court held that the sentence awarded by the trial court required revisional scrutiny because the propriety of punishment was not in accordance with law as examined in the impugned proceedings. The matter therefore required reconsideration on the question of sentence by the lower court.
Conclusion: The revisional challenge to the sentence was accepted and the sentence-related part of the matter was restored for fresh consideration according to law.
Issue (iii): Whether the revision was liable to fail on the technical objection that the common order ought to have been challenged by separate petitions.
Analysis: Although a common order was passed in connected proceedings, the court held that the technical objection would not defeat revisional power where illegality and correctness of the order had come to notice. The court treated the defect as non-fatal and proceeded to examine the legality of the impugned order in the revision itself.
Conclusion: The technical objection was rejected.
Final Conclusion: The impugned appellate decision was interfered with, the conviction-related finding was set aside, and the matter was remitted for reconsideration in accordance with law, including the question of sentence.
Ratio Decidendi: In a cheque dishonour prosecution, admission of signature on the cheque attracts the statutory presumption that the cheque was issued for discharge of a legally enforceable debt or liability, and the evidential burden then shifts to the accused to rebut that presumption.