NDLI: Krishna Janardhan Bhat Vs. Dattatraya G. Hegde

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Ss. 13(1) 1881 138 and 139 118 (a} Negotiable Instruments Act
Content Type	Text
Resource Type	Law Judgement
Jurisdiction	India
Act(s) Referred	Income Tax Act, 1961 (43 of 1961) Negotiable Instruments Act, 1881 (26 of 1881)
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Negotiable Instruments Act, 1881; Ss. 13(1), 118 (a}, 138 and 139:Dishonour of Cheque - Commission of an offence u/s.138 - Presumption under S.139 r/w S.118 of the Act - Rebuttal - Burden to prove - Held: S.139 merely raises a presumption in favour of holder of Cheque that it has been issued in discharge of debt/liability and it could not be extended to existence of a debt - Courts below erred in proceeding on the basis that the accused required to step into the witness box to prove his defence - Burden could be discharged on the basis of material on record - In a case where false implication cannot be ruled out, background facts and conduct of parties required to be taken into consideration - In the instant case, four cheques allegedly drawn on the same day by business partner of accused from his cheque book and allegedly misused in collusion with complainant - Under the circumstances, Courts below required to draw an inference as to the probability of respondent-complainant allegedly advancing a huge sum of Rs.1.5 lakhs to accused by merely asking and even without keeping any documentary proof in connection thereof and accused issuing the cheque in question towards repayment of loan so advanced, and the Cheque could not be realized for insufficiency of funds in the bank - The Courts below also failed to notice that advance taken by way of loan exceeding Rs.20,000/- if not made by way of A/c Payee Cheque, it attracts penalty on the drawer of the Cheque in terms of s. 271D of the Income Tax Act- Though provisions u/s. 139 has been inserted to regulate trade activities and to safeguard the faith of creditor on the drawer of Cheque but the Courts shall not turn a blind eye to ground realities - Existence of legally recoverable debt not a matter of presumption u/s. 139 of the Act - Hence, the Courts below acted wrongly in applying legal principles in the fact situation of the case - In view of the peculiar facts and circumstances of the case, High Court should have entertained the revision application filed by the accused - Income Tax Act, 1961 - Ss.269 SS and 271D. Sections 118 and 139 - Mandatory presumption under- Scope of.
Judge	Hon'ble Mr. Justice S.B. Sinha
Neutral Citation	2008 INSC 44
Petitioner	Krishna Janardhan Bhat
Respondent	Dattatraya G. Hegde
SCR	[2008] 1 S.C.R. 605
Judgement Date	2008-01-11
Case Number	518

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