Q: What is the incorrect view of interpreting cheque bounce cases ?

Ans: That if the signature is admitted or proved to be true, then there is not much onus or burden on the complainant to prove the liability, he need not prove the existence of facts to prove the liability, it is the liability of an accused to disprove the liability. The cheque is taken as the acknowledgement or the proof of legally enforceable debt in support of complainant. If the accused has failed to disprove, a thing which is not even proved by complainant, then he is convicted. This interpretation is illegal and absolutely incorrect and perverse.

We are not required to mention any specific order of Honourable Apex Court or Honourable High Courts across India, but this is how as good as all the courts in India are interpreting this section, except Kerala High Court.

Comments

Post a Comment

Popular posts from this blog

Q: What is the significance of issuing account payee cheque?

Ans: While issuing the cheque, a drawer should draw two parallel lines on its left side and should write 'account only' in between them. By doing this, the cheque becomes an account payee cheque and the payment will be made only in the bank account of the payee. In case of any type of fraud, the payee can be traced. Having the above- mentioned precautions, a drawer can be avoided from fraud to a great extent.
Read more

Q: Elaborate the citation of Sasseriyil Joseph vs Devassia on 22 September, 2000 ?

Ans:  Sasseriyil Joseph vs Devassia on 22 September, 2000. The Kerela High Court held that Section 138 of negotiable instrument act is attracted only if there is legally recoverable debt and it can not be said that the time barred debt is legally enforceable debt. For the reasons stated above, the Kerela High Court finds no reason to interfere with the order of acquittal passed by the learned Additional Sessions Judge.  The Kerela High Court sees no infirmity in the judgment of the lower Court. This appeal is groundless and is liable to be dismissed.
Read more

Q: How would section 208, 209 and 210 of IPC be implemented in dishonour of cheque ?

Ans: A and B collude together and A issues the cheque for X Amount, which gets dishonored.  B files the complaint under S.138, and without proving the liability gets the benefit of presumption under S.139, now both A and B enact the drama of compounding under S.147 of NI Act, matter closed, but in principle A has violated IPC S.208 and S.210 and B has violated IPC S.209. So, if rightly B is asked to prove the entitlement to become the holder, before presumption can be granted to him, surely he would fail and lawfully both A and B can be prosecuted under IPC S.208, S.209 and S.210 if required.
Read more