TaxTMI 
TaxTMI 
2026 (2) TMI 117
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....filed. 2.Despite service of notice to the respondent and his name printed in the cause list, there was no representation for the respondent either in person or by any counsel. Hence, this Court by order dated 30.10.2025 appointed Ms.J.Hakshara Shree as Legal Aid Counsel for the respondent. 3.Gist of the case is that the respondent borrowed a sum of Rs. 3,00,000/- (Rupees three lakh only) from the appellant on 15.10.2012 for his business purpose and promised to repay within one month from the date of loan received. But the respondent never repaid the loan amount, after repeated request, the respondent in repayment of loan issued a cheque (Ex.P1) bearing No.325357 dated 25.12.2012 for a sum of Rs. 3,00,000/- (Rupees three lakh only) dra....
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.... from Perambalur which is 200 km far away place and there is no reason for appellant giving loan to the respondent when there is no other relationship between them. Further, the appellant's financial capability questioned, the appellant confirmed he was running lorry transport business and had sufficient income to lend a loan. The appellant was questioned with regard to Income Tax Returns, thereafter respondent failed to probablize his defence that appellant had no source of income and he was not a man of resources. The respondent admits registered sale agreement in document No.5002 of 2011 dated 17.08.2011 between appellant and respondent and the sale to be concluded within 11 months. In this case, respondent failed to complete payment....
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....sion, there was some transaction between appellant's father-in-law Ramasamy and respondent, which the appellant not disclosed in the statutory notice, complaint or in his evidence, until confronted by the defence and hence gave benefit of doubt and dismissed the complaint. 6.In support of his contention, learned counsel for the appellant relied on the decision of the Hon'ble Apex Court in the cases of Shree Daneshwari Traders v. Sanjay Jain and another reported in (2019) 16 SCC 83 and Rohitbhai Jivanlal Patel v. State of Gujarat and another reported in (2019) 18 SCC 106 for the point that it is for the respondent-accused to adduce evidence to prove that the cheques were not supported by consideration and there was no debt or any ....
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.... himself as DW1 and marked (i)sale agreement in document No.5002 of 2011 dated 17.08.2011 as Ex.D1, (ii)power of attorney (Ex.D2) dated 10.11.2011 as Ex.D2, (iii)cancellation of power of attorney dated 26.03.2013 as Ex.D3, (iv)written statement dated 05.02.2014 filed by the respondent in O.S.No.96 of 2013 as Ex.D4, (v)encumbrance certificate confirming sale agreement between appellant and respondent as Ex.D5, (vi)plaint copy of civil suit filed by appellant's father-in-law in O.S.No.96 of 2013 dated 13.09.2013 as Ex.D6, (vii)notice issued by appellant's father-in-law as Ex.D7 and (viii)reply notice in the civil suit dated 06.08.2013 as Ex.D8. When these documents were confronted and put to the appellant, he denied the same, thereby,....
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....er of cheque in dispute (Ex.P1) to the appellant. Nowhere in the civil suit, the defence that liability to the cheque, discharged taken. 9.Considering the submissions and on perusal of the materials, it is seen that appellant prior to filing complaint under Section 138 of Negotiable Instruments Act, 1881, issued statutory notice (Ex.P3) to respondent. The statutory notice is with regard to issuance of cheque (Ex.P1) by respondent and dishonour of cheque (Ex.P1) and filing of complaint there is no details further given. Even in the complaint and in sworn statement, there is no reference to any of earlier transaction between appellant and respondent. When the appellant was cross examined by the respondent, the appellant was specifically qu....