The Karnataka High Court held that when the defence of the accused in a case of dishonour of cheque under the Negotiable Instruments Act cannot be believed, it can be inferred that the accused engaged in a transaction and issued a cheque for the same.

The Court took note of the argument advanced by the petitioner that he had issued a cheque to a different individual but the complainant and his son misused it. However, the petitioner failed to provide any evidence supporting this claim.

A Single Bench of Justice S Rachaiah observed, “It is settled principle of law that the accused has to rebut the presumption by leading the cogent evidence to substantiate his case…DW.1 contended that he was not aware about the complainant and no transaction had taken place between the complainant and himself…However, the son of the complainant namely Sri.Venkatesh presented one of the cheques and withdrew Rs.12,000/- from his account.

Advocate Harish Babu K N represented the petitioner, while HCGP Prasanna V R appeared for the respondent.

The petitioner challenged the judgment of conviction and sentence by the trial court under Section 138 of the Negotiable Instruments Act (NI Act). The petitioner had borrowed a certain sum from the complainant. The petitioner allegedly issued a cheque to repay the loan, but it was dishonoured due to insufficient funds which led to the filing of a criminal complaint against him.

The petitioner argued that the trial court erred in convicting him underlining the non-service of a mandatory notice as required by Section 138(b) of the NI Act. he further argued that the complainant had failed to provide evidence of advancing any loan to the petitioner.

The Court held, “When the defence of the accused is not believable, inference can be drawn that he made a transaction with the complainant and issued cheque for the said transaction.

Accordingly, the High Court dismissed the revision petition.

Cause Title: Rangaswamy v. Ravi Kumar

Appearance:

Petitioner: Advocate Harish Babu K N

Respondent: HCGP Prasanna V R

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