Blank Cheque and Principles of Acquittal in Cheque Dishonour under S.138 of NI Act, 1881

Blank Cheque and Principles of Acquittal in Cheque Dishonour under S.138 of NI Act, 1881

In this case [K. Yashoda v. K. Venkatesh [2014] GCtR 6580 (Dharwad, Karnataka)], complainant was aggrieved. However, the acquittal of accused was found valid. In this case, complainant was having a blank cheque which was issued by accused ; cheque was issued as a security and cheque got dishonoured after which proceedings under S.138 of Negotiable Instruments Act, 1881 were initiated. After looking at the date of loan and the date of cheque, High Court found acquittal of accused justified. It was held that provision under Section 20 of the N.I. Act, 1881 also envisages that the cheque should not be filled up for any excess amount. Therefore, it goes without saying that when the accused disputes the contents of cheque, particularly the amount mentioned in the said cheque as excessive and mis-used by complainant, in that context, the presumption under Section 139 of the N.I. Act, 1881 cannot be drawn in favour of complainant, because of the simple reason that the liability or debt is disputed by accused and it is admitted by complainant in the course of cross examination that a blank cheque was given and actually she has filled up the contents of said cheque." When the complainant has nowhere stated that a blank cheque has been issued to complainant and thereafter she has filled up the amount for Rs.95,000/- ;  then it is incumbent upon the complainant to show that as on the date of issuance of cheque the amount of Rs.95,000/- was not known to the parties and with an intention to fill up the said cheque, the accused has given the blank cheque so as to enable the complainant to fill up the said cheque, in future, for the exact liability of the accused.