Conviction Secured in Cheque Bounce Case under Section 138 of the Negotiable Instruments Act
Court: Kukatpally MM Courts
Case Type: Criminal Complaint under Section 138 of the Negotiable Instruments Act, 1881
Handled by: SJ Law Firm
Background
The complainant, a long-time friend of the accused, approached SJ Law Firm after facing persistent difficulties in recovering a hand loan advanced to the accused. The accused had borrowed a substantial sum with a mutually agreed interest rate, assuring repayment within the agreed period.
However, despite repeated requests and reminders, the accused failed to repay the amount. Consequently, the complainant was compelled to issue a statutory demand notice under Section 138 of the Negotiable Instruments Act, 1881.
Facts of the Case
- The accused issued a cheque towards repayment of the loan.
- The cheque was dishonoured on presentation due to insufficient funds.
- The complainant served a legal notice demanding payment within the stipulated time under the Act.
- The accused acknowledged receipt of the notice and sent a reply claiming that the loan had already been repaid — partly in cash and partly through online transfers made by his friends.
Trial and Proceedings
During the trial, the accused maintained that he had already cleared the dues through various payments made via third-party bank accounts and cash transactions.
Our team at SJ Law Firm conducted a detailed analysis of the alleged repayment claims and effectively established that:
- The accused failed to produce any credible documentary or bank evidence proving repayment,
- The alleged payments made through friends’ accounts had no link to the complainant, and
- The accused’s version was unsupported, inconsistent, and contrary to the record.
Through clear documentary evidence and witness testimony, we demonstrated that the legally enforceable debt existed and that the cheque in question was indeed issued towards discharge of that liability.
Judgment
After considering the evidence and submissions from both sides, the Hon’ble Court held that the accused failed to rebut the presumption under Section 139 of the Negotiable Instruments Act.
The Court convicted the accused and directed him to pay the cheque amount to the complainant, along with 6% interest from the date of the complaint till realization.
Outcome
- Conviction under Section 138 NI Act
- Cheque amount and 6% interest awarded to the complainant
- Accused’s defence of alleged repayment rejected as unsubstantiated
Conclusion
This case reinforces that mere assertions without proof cannot defeat the statutory presumption under the Negotiable Instruments Act. A borrower who issues a cheque towards repayment cannot escape liability by making vague claims of repayment without supporting evidence.
At SJ Law Firm, we take pride in securing justice for our clients through strategic cross-examination, precise documentation, and evidence-driven advocacy.