Joluk Ninu vs Ajay Agarwal
2022 Latest Caselaw 4368 Gua

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GAHC010128682014




                              THE GAUHATI HIGH COURT
   (HIGH COURT OF ASSAM, NAGALAND, MIZORAM AND ARUNACHAL PRADESH)

                              Case No. : Crl.Rev.P./498/2014

            JOLUK NINU
            S/O GOJO NINU PROPRIETOR OF "CITY COMPUTER", BANK TINALI,
            ITANAGAR, DIST. PAPUMPARE, ARUNACHAL PRADESH.

            VERSUS

            AJAY AGARWAL
            PROPRIETOR OF "COMPUTER SOLUTION", WARD NO. 7,MOUZA-
            LAKHIMPUR, DIST. NORTH LAKHIMPUR, ASSAM.



Advocate for the Petitioner   : MR. R J DAS

Advocate for the Respondent : MR.D K KOTHARI




                                   BEFORE
                      HONOURABLE MR. JUSTICE ROBIN PHUKAN

                                        JUDGMENT

Date : 10.11.2022

Heard Mr. P.K. Tiwari, learned counsel for the petitioner and also heard Mr. B. Deka, learned counsel for the respondent.

2. In this criminal revision petition, under 397/401 of the Code of Criminal Procedure, the petitioner has challenged the legality, propriety and correctness Page No.# 2/12

of the judgment and order dated 13.11.2014, passed by the learned Sessions Judge, North Lakhimpur, in Criminal Appeal No. 43[4]/2013. It is to be noted here that vide impugned judgment and order the learned Court below has affirmed the judgment and order passed by the learned Chief Judicial Magistrate, Lakhimpur convicting the petitioner under section 138 of the N.I. Act and sentencing him to pay a fine of Rs. 5,000/- with default stipulation, in CR Case No.248/2009, under section 138 of N.I. Act.

3. The factual background leading to filing of the present application is briefly stated as under:-

"Shri Ajay Agarwal, hereinafter the respondent, has a computer shop namely

'Computer Solution' in North Lakhimpur Town, and Sri Joluk Ninu of Itanagar, hereinafter the petitioner, came to the shop of the respondent and purchased computer, laptop, desktop and other computer accessories for a sum of Rs. 4,07,880/- by giving him a cheque bearing No. CCS No. 50-0701072 of State Bank of India, Ganga Branch and again on 15.05.2009 the petitioner came to the shop of the respondent and handed over an another cheque for a sum of Rs. 2,03,940/- bearing no. CCS No. 0701074 of State Bank of India, Ganga Branch, Itanagar. Accordingly, on 27.07.2009, the respondent deposited both the cheques at the State Bank of India, North Lakhimpur Branch, for collection of the said amount. But, on 04.08.2009, the bank returned both the cheques with the endorsement 'insufficient fund' in the account of the petitioner. Thereafter, the respondent has issued legal notice to the petitioner demanding payment of the cheque amounts. But, the petitioner had failed to make the payment despite of receipt of notice. Then the respondent had filed a complaint before the learned Chief Judicial Magistrate, North Lakhimpur, under section 138 of the N.I.

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Act. Upon the said complaint, the learned Chief Judicial Magistrate, North Lakhimpur, had taken cognizance and issued process to the petitioner to appear before him and to stand trial. Accordingly, the petitioner appeared before the learned court below and the learned court below had explained the particulars of offence to the petitioner, to which the petitioner had pleaded not guilty and claimed to be tried. Thereafter, examining the witnesses and hearing learned the Advocates of both the parties, the learned Chief Judicial Magistrate; North Lakhimpur has convicted the petitioner under section 138 of the N.I. Act and sentenced him as aforesaid. Being highly aggrieved, the petitioner had filed an appeal against the judgment and order of the learned Chief Judicial Magistrate, before the Learned Sessions Judge, North Lakhimpur. Thereafter, hearing learned Advocates of both the parties, the learned Sessions Judge, North Lakhimpur, in Criminal Appeal No. 43[4]/2013, affirmed the conviction and sentence awarded by the learned Chief Judicial Magistrate, North Lakhimpur."

4. Being highly aggrieved the petitioner approached this Court by filing the present revision petition on the following grounds:-

[i] That, the learned courts below had erred in law by failing to consider that the blank cheques given by the petitioner to the respondent, which were not cheques, within the section 6 of the N.I. Act and as such the factum of their being dishonored, could not have constituted an offence under section 138 of the N.I. Act;

[ii] That, the learned courts below had failed to appreciate the evidence adduced by the respondent and the petitioner;

[iii] That, the learned court below also failed to consider that the petitioner had succeeded in rebutting the presumption in favour of the holder of the Page No.# 4/12

cheques under section 139 of the N.I. Act;

[iv] That, the learned court below had failed to consider the fact that the petitioner did not consent to the respondent in filling the amount in words and figure in the blank column including the dates and same the amounts to material altercation of the cheque within the meaning of section 87 of the N.I. Act;

[v] That, the learned courts below also failed to appreciate that the blank cheques were given as security and dishonoring the same cannot give rise to a complaint under 138 of the N.I. Act, since the said cheques were not issued for the purpose of discharging any debt or liability; [vi] That, the learned courts below had erred in law by applying section 139 of the N.I. Act to the fact of the present case as there being no prima facie evidence to support the statement of the complainant that the petitioner, on certain specified date, had brought goods of specified amount from the shop of the respondent;

[vii] That, the learned courts below had failed to consider that the cheque is a bill of exchange drawn on a specified banker and not expressed to the payable otherwise then on demand and the bill of exchange could not have been considered to be cheques within the meaning of section 5 and 6 of the Act, so as to attract the offence punishable under section 138 of the N.I. Act;

[viii] That, the learned courts below had failed to appreciate that there was material discrepancies in the evidence of the complainant which shakes his credibility as he had given different versions in his examination in chief and cross examination;

[ix] That, the learned court below has failed to appreciate that though the Page No.# 5/12

presumption under section 139 of the Act is available in favour of the respondent that there is also corresponding presumption of innocence in favour of the petitioner therefore, it is contended to allow this petition by setting aside the impugned judgment passed by the learned court below.

5. Mr. Tiwari, the learned Senior Counsel, appearing for the petitioner, submits that the cheques in question, in fact are bill of exchange, and there was no legally enforceable debt between the parties, in discharge of which the petitioner had issued the aforesaid cheques. Mr. Tiwari further submits that the blank cheques were issued by the petitioner as security, and the same were filled up and presented by the respondent and the same was returned as unpaid due insufficiency of the fund and the cheque amount was not paid on demand. Mr. Tiwari further submits that though the presumption under section 139 of the N.I. Act is available in favour of the respondent, yet it is a rebuttable presumption and the petitioner has succeeded in rebutting the same. It is the further submission of Mr. Tiwari that the respondent had failed to produce the Tax Invoice and the Challan of purchasing the goods to substantiate existence of a debt between him and the petitioner in discharge of which the petitioner has issued the cheque and as such he had withdrawn the material evidence. Mr. Tiwari also submits that the respondent has given contradictory statement in his examination in chief and in cross examination, besides admitting that he had put the amount and date in the cheques before presentation, which according to Mr. Tiwari amounts to material alteration, shake the credibility of his evidence. According to Mr. Tiwari, due to non production of best evidence, the presumption under section 114(g) of the Evidence Act is available in favour of the petitioner. He has further submitted that because of the withdrawal of the Page No.# 6/12

relevant evidence and the contradiction in the version of the respondent and non appreciation of the material evidence by the learned courts below, the impugned judgments and orders suffers from perversity, and therefore, this Court can invoke its supervisory jurisdiction and can set aside the impugned judgment. Therefore, it is contended to allow this petition. Mr. Tiwari has referred following case laws to support his submission:-

[i] Anss Rajashekar vs. Augustus Jeba Ananth reported in [2020] 15 SCC 348;

[ii] Oriental Bank of Commerce vs. Prabodh Kumar Tewari reported in [2022] SCC Online Sc 1089;

[iii] Tummala Venkateswar Rao vs. State of Andhra Pradesh reported in [2014] 2 SCC 240;

[iv] M.S. Narayana Menon @ Mani vs. State of Kerala and another reported in [2006] 6 SCC 39;

[v] Gopal Krishnaji Ketkar vs. Mohamed Haji Latif and others reported in [1968] 3 SCR 862 AIR 1968 SC 1413; and [vi] Ajoy Agarwal vs. Jaluk Nenu in C.R. case no. 248/2009.

6. Per contra, Mr. B. Deka, learned counsel for the respondent submits that there is concurrent finding of the two learned courts below and this court while sitting in revision cannot re-appreciate the evidence like an appellate court. Mr. Deka has pointed out that the contradictions so referred by the learned counsel for the petitioner in the deposition of the complainant, are minor in nature and as such they are not material and that in view of admission made by the petitioner that there was business transaction between him and the respondent, and issuance of blank signed cheques to the respondent by him, the Page No.# 7/12

presumption under section 139 of the N.I. Act is very much available and it does not matter who had filled up the cheque and it cannot be considered as material alteration. Mr. Deka further pointed out that though the petitioner has adduced defence evidence, yet, the same failed to outweigh the evidence of the respondent and that no adverse inference can be drawn as contended by the learned counsel for the petitioner. Mr. Deka further pointed out that in view of section 87 of the N.I. Act consent is required when material alteration in the instrument is required to be done. But here in this case no material alteration has been done and that though it is contended that the Tax Invoice and the Challan have not been produced before the courts below, yet, the petitioner has failed to file any application under section 91 of the Cr.P.C. for production of the aforesaid Tax Invoice and Challan and he had not made any such exercise during the trial and that the petitioner has failed to rebut the presumption and that the scope of revisional court is very limited and therefore, Mr. Deka contended to dismiss the petition. Mr. Deka also referred following case laws to support his version:

[i] Bir Singh vs. Mukesh Kumar in Criminal Appeal nos. 230-231 of 2019 [@SLP (CRL) nos. 9334-35 of 2018] and [ii] Sripati Singh [since deceased] through his son Gaurav Singh vs. the State of Jharkhand & another in Criminal Appeal nos. 1269-1270 of 2021 [Arising out of SLP (criminal) no. 252-253/2020].

7. In his reply to the submission of Mr. Deka, Mr. Tiwari submits that there was jurisdictional error and miscarriage of justice and as such this court has the power to exercise its revisional jurisdiction. Therefore, Mr. Tiwari contended to allow this petition.

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8. Having heard the submissions of the learned Advocates of both the parties and I have carefully gone through the petition and the documents placed on record and also gone through the records of learned courts below. Also I have carefully gone through the case laws referred by learned Advocates of both the parties.

9. Section 139 of the N.I. Act provides for presumption in favour of holder:- " It shall be presumed, unless the contrary is proved, that the holder of a cheque received the cheque of the nature referred to in section 138 for the discharge, in whole or in part, of any debt or other liability." The proposition of laws, so laid down in the aforementioned case laws so referred by the learned Advocates of both sides is that -"the onus to rebut the presumption under Section 139 that the cheque has been issued in discharge of a debt or liability is on the accused and the fact that the cheque might be post dated does not absolve the drawer of a cheque of the penal consequences of Section 138 of the Negotiable Instruments Act.

10. In Rangappa v. Sri Mohan reported in (2010) 11 SCC 441, a three- Judge Bench of Hon'ble Supreme Court held that Section 139 of the Act mandates that it shall be presumed, unless the contrary is proved, that the holder of a cheque received it, in discharge, in whole or in part, of a debt, or liability. The expression "unless the contrary is proved" indicates that the presumption under Section 139 of the Act is rebuttable. Terming this as an example of a "reverse onus clause" the Court held that in determining whether the presumption has been rebutted, the test of proportionality must guide the determination. The standard of proof for rebuttal of the presumption under Page No.# 9/12

Section 139 of the Act is guided by a preponderance of probabilities.

11. It is further held that:-

"28. In the absence of compelling justifications, reverse onus clauses usually impose an evidentiary burden and not a persuasive burden. Keeping this in view, it is a settled position that when an accused has to rebut the 4 (2021) 5 SCC 283 5 (2020) 15 SCC 348 6 (2010) 11 SCC 441 Crl.A.1260/2022 7 presumption under Section 139, the standard of proof for doing so is that of "preponderance of probabilities". Therefore, if the accused is able to raise a probable defence which creates doubts about the existence of a legally enforceable debt or liability, the prosecution can fail. As clarified in the citations, the accused can rely on the materials submitted by the complainant in order to raise such a defence and it is conceivable that in some cases the accused may not need to adduce evidence of his/her own."

12. In the case in hand I find that there is no dispute that there was business transaction between the petitioner and the respondent and also there is no dispute that the petitioner has admitted in his evidence having filled up the dates and amount of sum in the cheques and also there is no quarrel at the Bar that the cheques were presented to the banker by the respondent and the same were returned unpaid with the endorsement- "insufficient fund". There is also no dispute that the respondent has issued legal notice to the petitioner demanding the cheques amount and the petitioner had failed to make the payment within the stipulated period, and thereafter, the petitioner had filed the complaint under section 138 of the N.I. Act. Thus, the presumption under sections 139 and 118(a) of the N.I. Act is very much available here in this case. And the both the learned courts below had arrived at the concurrent finding that presumption under section 139 of the N.I. Act is available in favour of the respondent and that the petitioner had failed to rebut the same and consequently held the Page No.# 10/12

petitioner guilty under section 138 N.I. Act. Now, as contended by the petitioner, it is to be seen how far the petitioner had succeeded in rebutting the presumption available under section 139 of the N.I. Act.

13. Mr. P.K. Tiwari, the learned counsel for the petitioner, referring to the evidence of the respondent submits that in his cross examination he clearly stated having filled up the cheque amount and also the date in the cheque whereas he has not made such a statement in his evidence in chief. This contradiction, according to Mr. Tiwari, cast a serious doubt about the veracity of his version. It is to be noted here that the law relating to contradiction is well settled by Hon'ble Supreme Court in catena of decisions. In the case of Krishna Pillai vs. State of Kerela reported in AIR 1981 SC 1237, Hon'ble Supreme Court has held that no criminal case is free from inconsistencies and discrepancies in the prosecution evidence and unless such inconsistencies and discrepancies pertains to significant aspect or go to the root of the matter, the defence cannot take the benefit of the same. Here in this case having carefully examined the contradiction so pointed out at the bar this court left unimpressed by the submission of Mr. Tiwari that there is any material contradiction to shake the credibility of the version of the respondent.

14. It is a fact that the respondent had produced Tax Invoice and Challan of selling computers, laptops and accessories to the petitioner. Though Mr. Tiwari, the learned counsel for the petitioner has submitted that the respondent has withdrawn the relevant evidence and because of non-consideration of the same by the learned courts below in their judgments leads to perversity, yet, the same would not disentitled the learned courts below from drawing the statutory presumption available under section 139 of the N.I. Act. What is to be noted Page No.# 11/12

here is that the petitioner also failed to make any such prayer before the learned court below for production of the said documents. Mr. Deka, the learned counsel for the respondent has rightly pointed this out during argument. I am afraid the ratio laid down in the case of Gopal Krishnaji Ketkar (supra) would come into aid of the petitioner as the ratio laid down therein is restricted to its own facts.

15. It also cannot be said that there is any material alteration of the cheques and no adverse inference can be drawn against the respondent and sections 20 and 87 of the N.I. Act would not come into aid of the petitioner. Mr. Deka, the learned counsel for the respondent has rightly pointed out this in his argument and submits that since signed cheques in questions were respondent in discharge of liability, non-existence of which could not be established by leading cogent evidence, it can reasonably be presumed that the cheque was filled in by the respondent being the payee at his request and/or with his acquiescence and the subsequent filling in of an unfilled signed cheque is not an alteration. The ratio laid down in the case of Bir Singh [supra] also strengthened his submission. In the said case Hon'ble Supreme Court has held that :-

38. If a signed blank cheque is voluntarily presented to a payee, towards some payment, the payee may fill up the amount and other particulars. This in itself would not invalidate the cheque. The onus would still be on the accused to prove that the cheque was not in discharge of a debt or liability by adducing evidence.

..........

...........

"42. In the absence of any finding that the cheque in question was not signed by the respondent-accused or not voluntarily made over 17 to the payee and in the absence of any evidence with regard to the circumstances in which a blank signed cheque had been given to the Page No.# 12/12

appellant-complainant, it may reasonably be presumed that the cheque was filled in by the appellant-complainant being the payee in the presence of the respondent-accused being the drawer, at his request and/or with his acquiescence. The subsequent filling in of an unfilled signed cheque is not an alteration. There was no change in the amount of the cheque, its date or the name of the payee. The High Court ought not to have acquitted the respondent-accused of the charge under Section 138 of the Negotiable Instruments Act."

16. Thus, having carefully considered the submissions of learned Advocates of both sides and also considering the facts and circumstances on the record of the learned court below, this court is of the view that the petitioner herein has failed to rebut the statutory presumption drawn under section 139 of the N.I. Act. There is nothing on the record to show that the learned courts below have committed any jurisdictional error. As submitted by Mr. Tiwari it cannot be said that the impugned judgments and orders of the learned courts below suffers from perversity. It is to be mentioned here that while exercising revisional jurisdiction the High Court cannot substitute its view for that of the trial court if two views are possible. Reference in this context can be made to a decision of Hon'ble Supreme Court in the case of Helper Girdharbhai vs. Saiyed Mohmad Mirsaheb Kadri and Ors., reported in AIR 1987 SC 1782.

17. In the result I find this revision petition devoid of merit and accordingly, the same stands dismissed. Interim relief, if any, granted earlier, stands vacated. The parties have to bear their own cost.

JUDGE

Comparing Assistant