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2020 (10) TMI 1175 - HC - Indian Laws


Issues involved:
Validity of conviction and sentence under Section 138 of the Negotiable Instruments Act.

Analysis:
1. Presentation of Cheque and Notice: The complainant presented a cheque for realization, which was dishonored due to insufficient funds. Subsequently, a notice was issued to the accused informing him of the dishonor and demanding payment. The accused failed to respond or pay the amount, leading to the filing of a complaint under Section 138 of the NI Act.

2. Trial Court Proceedings: The Trial Court examined the parties and evidence, leading to the conviction of the accused under Section 138. The accused's defense regarding a loan transaction was considered, but the Court found that the accused failed to rebut the presumption that the cheque was issued towards the discharge of a legally recoverable debt.

3. Appeal and Defense: The accused challenged the conviction in the Sessions Court, which upheld the Trial Court's decision. The accused's defense centered around a tractor transaction involving his father-in-law, but the Court found discrepancies and lack of evidence to support his claims.

4. Presumption under Section 139: The Court emphasized the presumption under Section 139 of the NI Act, stating that once the issuance of the cheque and the accused's signature are admitted, the burden shifts to the accused to rebut this presumption with acceptable evidence.

5. Witnesses and Evidence: The accused failed to produce crucial witnesses, such as Ningegowda, to support his defense. The Court noted that the accused's failure to present key witnesses and provide substantial evidence worked against him.

6. Legal Precedents: The judgment referenced legal precedents, such as the case of Rangappa v/s Mohan, to emphasize the burden on the accused to rebut the presumption under Section 139. The Court reiterated that the accused must provide credible evidence to counter the presumption in favor of the complainant.

7. Dismissal of Revision Petition: Based on the evidence, legal principles, and precedents cited, the Court dismissed the revision petition, concluding that the accused failed to provide sufficient evidence to challenge the conviction and sentence under Section 138 of the NI Act.

In summary, the judgment analyzed the validity of the conviction and sentence under Section 138 of the Negotiable Instruments Act, highlighting the importance of evidence, legal precedents, and the burden on the accused to rebut the presumption arising from the issuance of the cheque. The Court found the accused's defense lacking in credibility and dismissed the revision petition accordingly.

 

 

 

 

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