NDLI: Aps Forex Services Pvt. Ltd. Vs. Shakti International Fashion Linkers & Ors.

Content Provider	Supreme Court of India
e-ISSN	30484839
Language	English
Access Restriction	NDLI
Subject Keyword	Enforceable Debt 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 Referred Case 3
Case Type	Appeal
Court	Supreme Court of India
Disposal Nature	Appeal Allowed
Headnote	Negotiable Instruments Act, 1881 – s.139 – Presumption as to legally enforceable debt or liability – Dishonour of four cheques issued by accused – Fresh consolidated cheque issued – Dishonour of the said cheque on presentation due to Stop Payment – Complaint under s.138 – Admission of accused of issuance of cheque as well as the signature on the cheque – Acquittal by courts below – Appeal by complainant – Plea of original accused that cheque was issued towards the security and the complainant misused the cheque – Held: The issuance of cheque by the accused and the signature of the accused on the said cheque were not disputed by the accused – The accused also not disputed that there were transactions between the parties – Even as per the statement of the accused, which was recorded at the time of the framing of the charge, he admitted that some amount was due and payable – In the reply to the statutory notice, no plea was taken by accused that the cheque was given by way of security – The cheque in question was issued for the second time – Therefore, once the accused admitted the issuance of cheque which bore his signature, there was presumption that there existed a legally enforceable debt or liability under s.139 Act – However, such a presumption is rebuttable in nature and the accused is required to lead the evidence to rebut such presumption – The accused was required to lead evidence that the entire amount due and payable to the complainant was paid – The story put forward by the accused that the cheques were given by way of security not believable in absence of further evidence to rebut the presumption and more particularly the cheque in question was issued for the second time, after the earlier cheques were dishonoured – Both, the trial court as well as High Court, committed error in shifting the burden upon the complainant to prove the debt or liability, without appreciating the presumption under s.139 of N.I. Act – Order of acquittal is set aside – Respondents are guilty for the offence under s.138 of the Act.Negotiable Instruments Act, 1881 – s.139 – Presumption under – s.139 of the Act is an example of reverse onus clause and, therefore, once the issuance of the cheque is admitted and even the signature on the cheque is admitted, there is always a presumption in favour of the complainant that there existed legally enforceable debt or liability and thereafter it is for the accused to rebut such presumption by leading evidence.Negotiable Instruments Act, 1881 – s.139 – Financial capacity of the complainant – When the accused questions the financial capacity of the complainant in support of his probable defence, despite the presumption under s.139 of the Act about the presumption of legally enforceable debt and that such presumption is rebuttable, the onus shifts on the complainant to prove his financial capacity and at that stage the complainant is required to lead the evidence to prove his financial capacity, more particularly when it is a case of giving loan by cash and thereafter issuance of a cheque – In the instant case, the accused never questioned the financial capacity of the complainant.
Judge	Hon'ble Mr. Justice M.R. Shah
Neutral Citation	2020 INSC 195
Petitioner	Aps Forex Services Pvt. Ltd.
Respondent	Shakti International Fashion Linkers & Ors.
SCR	[2020] 2 S.C.R. 811
Judgement Date	2020-02-14
Case Number	271

Sl.	Authority	Responsibilities	Communication Details
1	Ministry of Education (GoI), Department of Higher Education	Sanctioning Authority	https://www.education.gov.in/ict-initiatives
2	Indian Institute of Technology Kharagpur	Host Institute of the Project: The host institute of the project is responsible for providing infrastructure support and hosting the project	https://www.iitkgp.ac.in
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9	IDR Setup or Support	Queries related to establishment and support of Institutional Digital Repository (IDR) and IDR workshops	idr@ndl.gov.in

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