Section 138 of Negotiable Instruments Act, 1881, Cheque Dishonour and Acquittal of Accused

Section 138 of Negotiable Instruments Act, 1881, Cheque Dishonour and Acquittal of Accused

Section 138 - Loan Transaction - Role of ITR in cases of Cheque Dishonour - C alleged that A approached C asking for Rs. 80,000 which was given by C to A - A had issued a cheque drawn on SBI in favour of C which was returned vide Return Memo - When C sent legal notice, no payment was made by A - C then filed complaint before Magistrate  which was dismissed by Magistrate pointing out absence of loan transaction in ITR - Held, Magistrate's action of dismissing the complaint is justified when loan transaction is not reflected in ITR. - Govind Ram Singhal v. GNCTD [2023] GCtR 2511 (Delhi)

Section 139 - Presumption - Failure of Complainant to Establish the Allegations made in the complaint - How accused can rebut such presumption - Complainant C's ITR did not showed the loan transaction - Held, accused was able to rebut the presumption of Section 118 read with Section 139 of the NI Act and without the aid of the presumption thereunder, even though it was the duty of the complainant to prove his case beyond reasonable doubt, he failed to do so. It was also noted that there were inherent contradictions in the case set up by the complainant and his cross-examination. - Govind Ram Singhal v. GNCTD [2023] GCtR 2511 (Delhi)