Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | 1881 – s.139 Negotiable Instruments Act |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Negotiable Instruments Act, 1881 (26 of 1881) |
Case(s) Referred | Referred Case 0 Referred Case 1 Referred Case 2 |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Negotiable Instruments Act , 1881 – s.139 – Statutorypresumption under –Operation of – Appellants after being inductedas Directors in respondent’s company infused capital therein byway of deposits and shares – Subsequently, they resigned from thecompany and demanded re-payment of their dues – Respondentissued a promissory note and two cheques in favour of appellantsfor discharge of their liability – Cheques dishonoured – Trial courtconvicted respondent u/s.138 – Conviction affirmed by District andSessions Court – High Court reversed the conviction – On appeal,held: Once a cheque has been signed and issued in favour of theholder, there is statutory presumption that it is issued in dischargeof a legally enforceable debt or liability – This presumption is arebuttable one, if the issuer of the cheque is able to discharge theburden that it was issued for some other purpose like security for aloan – In the present case, the respondent has failed to produceany credible evidence to rebut the statutory presumption –Appellants have proved their case by over-whelming evidence toestablish that the two cheques were issued towards the discharge ofan existing liability and legally enforceable debt – Respondenthaving admitted that the cheques and Pronote were signed by him,the presumption u/s.139 would operate – Impugned order set aside– Order of conviction passed by the trial court, restored. |
Judge | Hon'ble Ms. Justice Indu Malhotra |
Neutral Citation | 2018 INSC 655 |
Petitioner | T.p. Murugan (dead) Thr. Lrs. |
Respondent | Bojan |
SCR | [2018] 9 S.C.R. 355 |
Judgement Date | 2018-07-31 |
Case Number | 950 |
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