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1 - 10 of 11 (0.51 seconds)Section 138 in The Negotiable Instruments Act, 1881 [Entire Act]
The Negotiable Instruments Act, 1881
Section 258 in The Code of Criminal Procedure, 1973 [Entire Act]
Section 146 in The Negotiable Instruments Act, 1881 [Entire Act]
Sampelly Satanarayana Rao vs M/S Indian Renewable Energy ... on 8 May, 2014
15. The accused in the written arguments contended
that PW1 in the course of cross examination admits
that Ex.P2 cheque taken towards security and
therefore sec.138 of N.I. Act does not attracts.
No doubt PW1 in the cross examination stated that
on 29-03-2011 he paid Rs.5 lakhs to the accused
and at that time he received the cheque from the
accused for security purpose. It is pertinent to that
there are catena of decisions of the various Hon'ble
High Courts that the cheque issued for security also
attracts sec.138 of N.I. Act. The Hon'ble Supreme
Court of India, in the recent decision reported in
(2016) 10 SCC 458 (Sampelly Sathyanarayana Rao Vs.
Indian Renewable energy development agency Ltd.)
held that, the cheques issued as security towards
discharge of loan and dishonour of such cheques
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would fall under Sec.138 of N.I Act. As observed
above the accused admits that the cheque in
question and signature there on belongs to him. The
accused fails to substantiate his defence version that
he issued the cheque to Dr. G.S. Shivakumar. The
Hon'ble Supreme Court of India in the case of
Rangappa V/s Mohan held that existence of legally
enforceable debt or liability is also a matter of
presumption u/s 139 of N.I. Act and burden is on the
accused to rebut the said presumption. Though the
accused cross examined the PW1 at Length and led
defence evidence fails to probabalize his defence
version. The accused has relied upon the following
decisions: