K Mani v. T Panner Chelvan

NEGOTIABLE INSTRUMENTS ACT, 1881

--Dishonour of cheque--Appeal against order of acquittalCheque issued to lender belonged to another person signed by borrower --Whether defence of borrower maintainable--Where complaint was filed against the borrower for dishonour of cheque and that the borrower took unbelievable defence to defeat the rights of holder of cheque in due course, then, borrower was rightly held guilty for the said offence.--Lender advanced financial assistance to the borrower. Borrower issued a cheque in favour of lender but the same was dishonoured. Lender filed a complaint against the borrower and the Trial Judge found the borrower guilty for the commission of offence punishable under section 138. However, Appellate Court acquitted the borrower on the ground that the act of borrower amounted to cheating and did not come under the scope of Negotiable Instruments Act. Therefore, lender filed an appeal against the order.Held: Borrower averred that the cheque issued to the lender belonged to another person had been signed by the borrower. There were no grounds to believe the said defence, as there were no circumstances, explanation or situation wherein the cheque belonged to a person other than borrower had been signed by the borrower. Further, there would be no occasion to doubt as to whether it was mentioned on cheque that account belonged to another person. Further that, borrower took unbelievable defence to defeat the rights of holder of cheque in due course. Hence, order of acquittal was set aside.