38.6c New Delhi, India, Saturday, June 22, 2024
Judiciary

NARENDRA VATS V. DEVI DASS: Failure to Show Transaction In ITR Would Not Stop Recovery of Loan [READ JUDGMENT]

By VANDANA KOTHARI      06 August, 2020 08:18 PM      0 Comments
NARENDRA VATS V.  DEVI DASS: Failure to Show Transaction In ITR Would Not Stop Recovery of Loan

In this case, Devi Dass (Accused), used to work with Narendra Vats (complainant), as a driver. During the period from March 2017 to May 2018, the accused took a total amount of Rs 6, 00,000 as a friendly loan from the complainant as he was in need of money. The accused promised to pay the total loan amount by November 2017. The entire loan was paid in cash. The accused issued a cheque of the total amount after the expiration of the loan period to the complainant. The cheque got dishonoured on the account of the insufficiency of funds twice because of which the complainant filed a case.

A notice of allegations was served upon the accused wherein hi disclosed his plea of defence and moved the application under section 145 (2) of NI Act. The accused denied the allegation of a loan from the complainant but stated that he hired the complainant's vehicle for commercial purpose for 2 months @ Rs 22,000 per month but was not able to use himself for more than a month and thus gave it to another driver Akram for the remaining period. He also stated that Akram being the new person, the complainant demanded some security upon which he issued the impugned cheque in a blank signed condition. He then mentioned that Akram also could not use the vehicle due to his personal reasons and thus the complainant then alleged that he suffered loss and misused the impugned security cheque.

The accused raised some questions during the final arguments that the case of the complainant must fail for the reason that he was not supposed to have such a huge transaction in cash and that he did not disclose the loan amount in his Income Tax Returns nor disclosed his source of income. 

Court findings:

The court after taking evidence from both sides said that the NIA raises 2 types of mandatory presumptions one u/s 118(a) and the other u/s 139. The court also took notice of contradictory statements given by accused at different stages and said that ‘it appears that accused himself is not clear for how much time he had hired the complainant’s vehicle and more importantly as to who had employed Akram as its driver.’ 

The court also held that ‘It has been held in a catena of judgments that mere non-disclosure of the loan transaction in the ITRs or any violation of the provision of IT Act concerns only the defaulter and the state.’

Judgment:

The court after a discussion held that the version of the complainant stands proved beyond a reasonable doubt. The accused Devi Dass stands convicted for the offense u/s 138 of NI Act.   

 

[READ JUDGMENT]



Share this article:



Leave a feedback about this
TRENDING NEWS

gravity-of-offence-not-relevant-when-considering-bail-for-juvenile
Trending Judiciary
Gravity of offence not relevant when considering bail for juvenile [Read Order]

Allahabad High Court grants bail to a juvenile in a serious criminal case, ruling that the gravity of the offence is not a relevant factor in bail decisions.

22 June, 2024 11:18 AM
new-anti-cheating-law-enacted-analysis
Trending Executive
New Anti-Cheating Law enacted: Analysis

In-depth analysis of India’s new Anti-Cheating Law, the Public Examinations (Prevention of Unfair Means) Act, 2024, aimed at curbing exam malpractices.

22 June, 2024 11:38 AM

TOP STORIES

women-including-housewife-approach-ncw-against-controversial-ips-officer-gyaneshwar-singh
Trending Crime, Police And Law
Women, including housewife, approach NCW against controversial IPS officer Gyaneshwar Singh

Two women approach NCW against controversial IPS officer Gyaneshwar Singh, citing harassment for tweets based on news reports about his involvement in high-profile cases.

17 June, 2024 03:10 PM
courts-this-week-law-street-journal-s-weekly-round-up-of-sc-anf-hcs-june-10-june-15
Trending Judiciary
Courts this Week: Law Street Journal's Weekly Round-Up of SC & HCs [June 10 - June 15]

Get the latest updates from the Supreme Court of India and the High Courts ! Here’s a round up of the week's top legal stories in a quick, easy-to-read summary.

17 June, 2024 03:29 PM
man-sues-apple-for-5-million-blaming-company-for-divorce-after-wife-discovers-deleted-messages-with-sex-workers
Trending Business
Man sues Apple for £5 million, blaming company for divorce after wife discovers ‘deleted messages’ with sex workers

A UK man sues Apple for £5M, claiming their unclear policy on deleted messages led to his divorce after his wife found texts to sex workers on another device.

17 June, 2024 04:26 PM
ex-karnataka-cm-yediyurappa-appears-before-cid-for-pocso-case-probe-with-protection-of-no-arrest
Trending Crime, Police And Law
Ex-Karnataka CM Yediyurappa appears before CID for POCSO case probe, with protection of 'no arrest'

Ex-Karnataka CM Yediyurappa appears before CID for POCSO case probe, denies allegations, granted ‘no arrest’ protection. Next hearing: June 28.

17 June, 2024 04:46 PM

ADVERTISEMENT


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email