Kausik Barui sentenced under Section 138 of the Negotiable Instruments Act for issuing a dishonoured cheque of Rs. 6,00,000
In a significant judgment, the Calcutta High Court has upheld the conviction of Kausik Barui for the dishonour of a cheque amounting to Rs. 6,00,000, under Section 138 of the Negotiable Instruments Act, 1881. The judgment, delivered by Justice Ajay Kumar Gupta, confirms the decision of the Additional District and Sessions Judge, 5th Fast Track Court at Alipore, which was originally passed by the Judicial Magistrate, 5th Court, Alipore.
The case stems from a complaint lodged by Kartick Chandra Basu, who alleged that Kausik Barui had approached him for an accommodation loan of Rs. 6,00,000, for which a cheque was issued. Upon presentation, the cheque was dishonoured due to insufficient funds. Despite a demand notice served by Basu, Barui failed to make the payment, prompting legal action under the Negotiable Instruments Act.
The defense argued that the cheque was issued for security purposes and contested the existence of a legally enforceable debt. However, the court found no credible evidence to substantiate these claims. The statutory presumption under Section 139 of the Act, which favors the complainant regarding the issuance of a cheque for the discharge of debt, remained unrebutted.
The High Court reiterated its position that it cannot act as an appellate body to re-evaluate evidence, emphasizing that interference is warranted only in cases of jurisdictional error, manifest miscarriage of justice, or perverse findings. Thus, the court upheld the lower courts' findings that Barui had issued the cheque in discharge of a legally enforceable debt.
Barui was sentenced to two months of simple imprisonment and fined Rs. 8,00,000, with Rs. 7,95,000 to be paid to the complainant as compensation. Failure to comply with the judgment would result in an additional two months of imprisonment.
This ruling reinforces the stringent measures under the Negotiable Instruments Act to ensure the credibility of cheques as reliable instruments in commercial transactions. The judgment also highlights the importance of adhering to statutory requirements for cheque transactions and the consequences of dishonouring financial commitments.
Bottom Line:
Conviction under Section 138 of the Negotiable Instruments Act upheld - Statutory presumption in favor of the complainant was not rebutted by the accused - Issuance of cheque for discharge of legally enforceable debt established.
Statutory provision(s): Section 138, Section 139, Section 482, Section 313 of the Negotiable Instruments Act, 1881; Section 482 of the Criminal Procedure Code, 1973; Article 227 of the Constitution of India.
Kausik Barui v. Kartick Chandra Basu, (Calcutta) : Law Finder Doc id # 2844933
