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Basalingappa vs Mudibasappa on 9 April, 2019

25. The issuance of the cheques and the signatures on them are not disputed by the accused. Consequently, the statutory presumptions under Section 118 read with Section 139 of the NI Act are triggered. These presumptions establish that the cheques were issued in discharge of a legally enforceable debt or liability in favor of the complainant. As held in Basalingappa v. Mudibasappa, 2019 SCC OnLine SC 491, once the presumption Digitally signed by SIDDHANT SIDDHANT KUMAR CT Case No. 465798/2016 KUMAR Date:
Supreme Court of India Cites 18 - Cited by 2275 - A Bhushan - Full Document

C.C. Alavi Haji vs Palapetty Muhammed & Anr on 18 May, 2007

26. The legal notice was duly sent to the registered address of the accused company. Section 114 of the Indian Evidence Act, read with Section 27 of the General Clauses Act, enables the Court to presume that the notice, once properly addressed and dispatched by post, was received by the addressee. The Hon'ble Supreme Court in C.C. Alavi Haji v. Palapetty Muhammed & Anr., (2007) 6 SCC 555, clarified that the requirement of notice under Section 138 NI Act is distinct from typical criminal law procedures and aims to afford the drawer an opportunity to make the payment within 15 days of receiving summons, if not earlier. The judgment further underscores that a drawer cannot evade liability by disputing the receipt of notice when statutory presumptions under Section 27 of the General Clauses Act and Section 114 of the Evidence Act apply. In the present case, the dispatch of the legal notice to the correct and registered addresses suffices to meet the statutory requirement.
Supreme Court of India Cites 14 - Cited by 4985 - D K Jain - Full Document

Sampelly Satyanarayan Rao vs Indian Renewable Energy Development ... on 19 September, 2016

In Sampelly Satyanarayana Rao v. Indian Renewable Energy Development Agency Ltd. (Criminal Appeal No. 867 of 2016), the Hon'ble Supreme Court held that the determination of whether a post-dated cheque represents a legally enforceable liability under Section 138 NI Act depends on the nature of the transaction. If a liability or debt exists at the time the cheque is issued or becomes due as per an agreement, the dishonor of such cheques attracts Section 138. Even if the cheques are described as "security," they will still represent liability if issued in repayment of installments for a loan already disbursed. This principle directly applies to the present case. In Sampelly Satyanarayan Rao, the Court noted that cheques described as "security" could still represent liability if linked to repayment obligations in an agreement. The cheques in the present case, though issued as part of a structured repayment mechanism, were not contingent or conditional but were enforceable under the agreed terms. Hence, the accused's defense that the cheques were mere security instruments is untenable.
Supreme Court of India Cites 14 - Cited by 492 - A K Goel - Full Document
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