Cheque Dishonour and Probable Defence for Acquittal under S.138 of Negotiable Instruments Act, 1881

Cheque Dishonour and Probable Defence for Acquittal under Section 138 of Negotiable Instruments Act, 1881

In an interesting decision [Hari Kishan v. Ranjeet [2015] GCtR 6584 (Delhi)], acquittal of accused under S.138 of Negotiable Instruments Act, 1881 was found justified. In this case, the accused had been able to rebut the statutory presumption by raising a probable defence. The accused denied having requested the complainant for a loan of Rs.23,70,000/- in the month of June-July 2008, or that he undertook to pay the same before January 2009. After noting that complainant has not been able to explain why, and in what circumstances he claimed to have given blank signed papers to the accused, conviction of accused was found without merit.  It was held that when the case set up by the holder of the cheque itself was dubious, initial presumption u/s. 118 & 139 of NI Act, 1881 itself comes to an end.