Home Case Index All Cases Indian Laws Indian Laws + SC Indian Laws - 2015 (4) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 1238 - SC - Indian LawsDishonor of Cheque - cheque returned with the remarks “Stop Payment” - repayment of Loan - Section 139 of the Negotiable Instruments Act, 1881 - The defendant's case is that she is only the name lender to the business of films distribution run in the name of Vijayakumari Films which is actually controlled and managed by her husband Kuppuswamy. She has disputed taking any loan from the complainant as claimed by him - Burden to Prove - High Court placed the burden of proof on the complainant. Whether complainant has to prove existence of a legally enforceable debt before the presumption under Section 139 of the Negotiable Instruments Act starts operating and burden shifts to the accused? Held that:- In the present case since the cheque as well as the signature has been accepted by the accused respondent, the presumption under Section 139 would operate. Thus, the burden was on the accused to disprove the cheque or the existence of any legally recoverable debt or liability. However, it may be noted that the cheque was dishonoured because the payment was stopped and not for any other reason. This implies that the accused had knowledge of the cheque being presented to the bank, or else how would the accused have instructed her banker to stop the payment. Thus, the story brought out by the accused is unworthy of credit, apart from being unsupported by any evidence - The High Court was misplaced in putting the burden of proof on the complainant. As per Section 139, the burden of proof had shifted on the accused which the accused failed to discharge. Appeal allowed - decided in favor of appellant.
|