Saturday 31 August 2019

Dishonour of cheque

*Dishonour of cheque - Friendly loan of Rs.15 lakhs by Income Tax practitioner to his client - Blank signed cheque issued for its repayment - Loan advanced not by cheque or demand draft or RTGS and without obtaining any writing to this effect - Such loan not shown in the income tax return of complainant - Held, (a) Fiduciary relationship between payee of cheque and its drawer would not disentitle payee to the benefit of presumption u/s 139 of the Act, in the absence of evidence of exercise of undue influence or coercion which is not the case of accused in the instant case; (b) it is immaterial that cheque may have been filled by any person other than the drawer, if the cheque is duly signed by the drawer; (c) Blank cheque leaf, voluntarily signed and handed over by accused, which is towards some payment, would attract presumption u/s 139 of the Act in the absence of any cogent evidence to show that cheque was not issued in discharge of a debt; (d) Fact that loan is not advanced by a cheque or demand draft or a receipt not obtained, makes no difference - Fact that accused had given signed blank cheque to complainant shows that initially there was mutual trust and faith between them - High Court patently erred in holding that burden was on complainant to prove that he had advanced the loan and blank signed cheque was given to him in repayment of the same - Accused convicted. (2019(1) Criminal Court Cases 587 (S.C.)*

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