Negotiable Instruments Act, 1881, Section 138 -- Dishonour of cheque - Plea that bank account was already closed - Cheque returned with bank endorsement `insufficient funds' - If account was closed, there was no occasion for Bank to return cheque with said remarks...........
Negotiable Instruments Act, 1881, Section 138, Criminal Procedure Code, 1973, Section 320(8) -- Dishonour of cheque - Compromise - Accused and complainant compromised the matter - Complainant received Rs.10 lakhs i.e cheque amount in terms of compromise - Conviction and sentence of accused set aside - Accused acquitted in terms of S.320(8) Cr.P.C...........
Negotiable Instruments Act, 1881, Section 138 -- Dishonour of cheque - Date of cheque drawn - It is drawn with reference to date mentioned in column in cheque and not the date on which it was signed...........
Negotiable Instruments Act, 1881, Section 138 -- Dishonour of cheque - Existing liability - Provisions of the Act does not lay down that cheque is required to be of existing liability - Word `existing' is not used in the statute...........
Negotiable Instruments Act, 1881, Section 138 -- Dishonour of cheque - Blank undated signed cheque can be used for initiating proceedings u/s 138 of the Act...........
Negotiable Instruments Act, 1881, Section 138, 87 -- Dishonour of cheque - Material alteration - Filing in blank cheque shall not be always required treated as material alteration - Alteration in common parlance is understood to mean, something is already written which is changed/altered subsequently - Alteration is permissible if it is made in order to carry out common..........
Negotiable Instruments Act, 1881, Section 138, 139 -- Dishonour of cheque - Presumption - Rebuttal of presumption - It is permissible for accused to rebut the same on the basis of evidence led by prosecution...........
Negotiable Instruments Act, 1881, Section 138, 139 -- Dishonour of cheque - Presumption - Rebuttal of presumption - To rebut presumption on preponderance of probabilities, accused can point out contradictions/deficiencies in the evidence of prosecution - It is not necessary for accused to lead evidence in defence to rebut presumption...........
Negotiable Instruments Act, 1881, Section 138 -- Dishonour of cheque - Payee or holder in due course has an additional remedy under civil law in addition to remedy under Criminal law - Both can be invoked simultaneously...........
Negotiable Instruments Act, 1881, Section 138 -- Dishonour of cheque - Financial capacity - Once accused raises a probable defence and accused fails to prove his financial capacity, then it would not be appropriate to order conviction...........
