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Smart Summary

Factual and Procedural Background

The present petition challenges the judgment dated 23/05/2013 passed by the JMFC (FTC) Bhopal in R.T No. 4918/2009, which acquitted the respondent/accused of the charge under section 138 of the Negotiable Instruments Act. The acquittal was based on the ground that the cheque in question was not proven to have been issued for discharging any debt or legally recoverable liability by the respondent/accused.

On 26/10/2008, the respondent signed and issued a cheque for Rs. 3,50,000/- payable at State Bank of India, Branch Vindhyachal Bhopal, instructing the petitioner to submit the cheque after 15th November 2008. The cheque was dishonored on 18/11/2008 due to insufficient funds. Subsequently, on 15/12/2008, the petitioner issued a legal notice through counsel and filed a complaint on 28/01/2009 before the JMFC, Bhopal.

Legal Issues Presented

  1. Whether the cheque issued by the respondent was for discharging a legally recoverable debt or liability under section 138 of the Negotiable Instruments Act.
  2. Whether the presumption under section 139 of the Negotiable Instruments Act, that a cheque is issued against consideration, was rebutted by the respondent.

Arguments of the Parties

Petitioner/Complainant's Arguments

  • The signature of the respondent on the cheque was admitted.
  • Under section 139 of the Negotiable Instruments Act, the burden shifts to the respondent to prove that the cheque was not issued for consideration.
  • The petitioner claimed that Rs. 3,50,000/- was obtained from his father (Rs. 84,000/- deposited in his account and the rest given in cash) and given to the respondent, against which the cheque was issued.

Respondent/Accused's Arguments

  • The respondent defended by testifying himself and denied that the cheque was issued for any debt or liability.
  • It was established that the cheque was a blank cheque signed in 2003, when the petitioner’s father stood as surety in a criminal case involving the respondent’s family members.
  • There were discrepancies in the ink and handwriting on the cheque, suggesting misuse by the petitioner.
  • The petitioner lacked sufficient funds to have given Rs. 3,50,000/- to the respondent.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court analyzed the evidence including the statements of both parties. While the signature on the cheque was admitted, the presumption under section 139 of the Negotiable Instruments Act is rebuttable. The court noted that the cheque was a blank cheque signed in 2003, unrelated to the present transaction. Discrepancies in ink and handwriting further cast doubt on the authenticity of the cheque as evidence of debt. The petitioner failed to prove that he had sufficient funds or that the cheque was issued against a legally recoverable debt. Given these factors and the principle that in case of two possible views the benefit goes to the accused, the court found no illegality or perversity in the trial court’s appreciation of evidence and upheld the acquittal.

Holding and Implications

The court DISMISSED the petition, thereby affirming the acquittal of the respondent under section 138 of the Negotiable Instruments Act.

The direct effect of this decision is that the respondent remains acquitted of the charge. The court did not set any new precedent or elaborate broader legal implications beyond confirming the application of established legal principles regarding the presumption under section 139 and the standard of proof required in cheque dishonor cases.

    Brajgopal Singh Swarnkar v. Girish Raisen

    Present petition is directed by the complainant against the judgment dated 23/05/2013 passed by JMFC (FTC)

    Bhopal in R.T No. 4918/2009 acquitting the respondent/accused of the charge under section 138 of Negotiable Instruments Act (in short NI Act), on the ground that cheque in question was not proved to have been issued for discharging any debt or legal recoverable liability by the respondent/accused.

    Necessary facts, in short, are that on 26/10/2008 respondent signed and issued a cheque for Rs. 3,50,000/- payable at State Bank of India, Branch Vindhyachal Bhopal and asked the petitioner to submit the cheque after 15th November, 2008. On 18/11/2008 aforesaid cheque was bounced for want of funds, then on 15/12/2008 petitioner issued notice through his counsel and thereafter on 28/01/2009 preferred complaint in the Court of JMFC, Bhopal.

    Learned counsel for petitioner/complainant submits that while signature of respondent on cheque is admitted then under presumption under section 139 NI Act burden shifts upon the respondent/accused to prove that consideration was not passed.

    In support of the complaint statement of Brij Gopal Singh, the petitioner, was appreciated by the trial court and in defence respondent/accused himself stood as a witness and after comparing and considering both the statements, Trial Court has observed that petitioner/complainant failed to prove the transaction of Rs. 3,50,000/- between the parties. Rather it has come on record that blank cheque was signed in the year 2003 in a criminal case father of the petitioner offered as surety for 6 family members of accused in court of Magistrate. After 5 years of the aforesaid period, aforesaid cheque was misused by the petitioner. Trial Court has observed that in fact petitioner had no source of money so that he can give Rs. 3,50,000/- to the respondent/accused. There had been some discrepancies in ink and writing of the cheque also.

    On careful perusal of record and cross examination of petitioner/complainant in para 18 it has come on record that Rs. 84,000/- was deposited by his father in his account and rest of the amount was given by his father to him in cash and that amount was given by him to the respondent/accused. In nutshell it is stated by him that Rs. 3,50,000/- was obtained by him from his father and then complainant gave it to the respondent/accused and against that amount accused/respondent has signed the cheque.

    True it is while cheque is signed by a person then under section 139 NI Act presumption is available in favour of the receiver of cheque but this presumption is rebuttable. It has come on record that blank cheque was signed by respondent in the year 2003. While father of complainant stood as surety for his family members in a criminal case. There are discrepancies in ink and writing of the cheque. Complainant could not prove the fact that he had sufficient funds of his own to give money and in cumulative effect, the petitioner/complainant was found to have failed to prove that aforesaid cheque was signed and issued by the Respondent against the debt and liability legally recoverable.

    Even otherwise in case of acquittal, if two views are possible then also benefit goes to the accused. I see no illegality or perversity in so far as appreciation of evidence of petitioner and respondent is concerned. No case of interference is made out. Accordingly this petition is dismissed.

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    Comments

    Brajgopal Singh Swarnkar v. Girish Raisen
    (Mar 7, 2014)