In Brief
In 1992, the appellant issued blank cheques as security for his wife's chit-fund subscriptions. The cheques were later filled and presented in 1999 after the account had closed, resulting in dishonour. The Trial Court acquitted the appellant, finding that the complainants lacked financial capacity to lend the claimed sums, as evidenced by their Income Tax Returns. The High Court reversed this, convicting the appellant under Section 138 of the Negotiable Instruments Act. The Supreme Court allowed the criminal appeals, holding that the presumption under Section 139 is rebuttable and the appellant had established a probable defence on the preponderance of probabilities standard. However, the Court dismissed the related civil appeals but modified the decrees to limit recovery to amounts deposited in Court with accrued interest.
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