TaxTMI 
TaxTMI 
2019 (4) TMI 1984
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....00/- drawn on Indian bank, Devakottai branch. On the expiry of two months period, the cheque was presented for collection. However, the same was returned for "insufficient funds". A statutory notice was issued to the respondent calling upon him to send a demand draft for Rs. 5,00,000/- to avoid prosecution under Section 138 of Negotiable Instruments Act. The respondent sent a reply dated 04.01.2013 denied the liability and alleged that the deeds, important papers including cheques and hand bag left in the premises of the complainant have been misused by the complainant. 3. With this set of facts, the parties appeared before the Trial Court and contested the case. On behalf of the complainant, 4 witnesses were examined and 8 Exhibits were m....
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....ound in the cheque is not his signature nor produced any documents to show that the cheque leaf kept in his bag was stolen and misused by the complainant. Contrarily in his deposition before the Court, he has come out with different theory that he and the complainant belong to same political party and due to difference of opinion to wreak vengeance, the cheque was misused by the complainant. The complainant having produced his Income Tax Returns which reflects the loan given to the accused and the failure of the accused to discharge the burden was not properly considered by the Lower Appellate Court. The Lower Appellate Court pointed out that the cheque being a non MICR cheque, when computerised cheque was in practice even few years earlier....
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.... to have been issued by the bank to the account holder long back and therefore, the date on which the cheque has been issued cannot be the actual date of which the cheque bear. The learned counsel also relying upon the abstract of the Income Tax Returns submitted by the complainant would state that the IT return relied by the complainant is subsequent to filing of the criminal complaint and mere IT returns will not substantiate the factum of lending Rs. 5 lakhs. The annual income of the complainant as shown in the Income Tax Returns so far does not indicate that he his capable of advancing loan of Rs. 5,00,000/. 8. Heard the learned counsel and perused the records. 9. The presumption under Section 139 of Negotiable Instruments Act is a re....
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....dgment of the Hon'ble Supreme Court in Kishan Rao Vs. Shankargouda reported in (2018) 8 Supreme Court Cases 165, wherein relying upon the Rengappa's case and the subsequent judgment of the Hon'ble Supreme Court, the Hon'ble Supreme Court has held that mere denial regarding the existence of debt shall not serve any purpose. In the facts of this case, a mere denial defence has been taken by the accused. Unfortunately the Lower Appellate Court has carried away by illusionary defenc,. though the trial Court had rightly held the accused guilty for the commission of the offence. Hence, the judgment of the Lower Appellate Court is said to be perverse and is liable to be set aside. 12. Accordingly, the Appeal is allowed. The judgme....