38.6c New Delhi, India, Monday, May 27, 2024

SC Says No Need To Produce Accounts Book In Criminal Case U/S 138 Of NI Act

By LawStreet News Network      12 February, 2020 10:02 AM      0 Comments
SC Section 138 of the Negotiable Instrument Act1881

On 20th January 2020, Supreme Court observed that there is no need to produce account books/cash book in case of criminal proceedings under Section 138 of the Negotiable Instrument Act, 1881. The decision was given by the bench comprising Justices R. Banumathi and AS Bopanna.

This decision came in a case where the decision of trial court had been overruled by the court of first appeal. According to the trial court the accused was guilty, but the appellant court reversed it as the complainant didn't produce cash and account books to prove that the amount was due and payable by the accused.

The case was that the accused purchased pesticides on credit from the complainant’s shop and made part payment by endorsing a cheque which was disowned by the bank because of ‘insufficient funds’.

However, the high court restored the decision of the trial court and observed that “the reason was given by the Lower Appellate Court that he didn't bring the cash book or order book, etc. could well be understood, if civil suit is tried but on the contrary, the order passed by the lower Appellate Court is in the criminal case filed under Section 138 of the N.I. Act."

When the same case was presented in front of the Supreme Court, it upheld the decision and observed that “As held by the Trial Court as well as by the High Court that the cheque was issued towards the amount due and payable by the appellant for purchase of pesticides. As rightly observed by the High Court production of the account books/cash book may be relevant in the civil court, but may not be so in the criminal case filed under Section 138 of the N.I. Act. This is because of the presumption raised in favour of the holder of the cheque. In view of the concurrent findings recorded by the Trial Court as well as by the High Court, we do not see any ground warranting interference with the conviction of the appellant under Section 138 of the N.I. Act."

Author- Aditi Dubey


Share this article:

User Avatar

Leave a feedback about this

Trending Judiciary
Courts this Week: Law Street Journal's Weekly Round-Up of SC & HCs [May 20 - May 25]

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.

26 May, 2024 11:25 AM
Trending Executive
Arvind Kejriwal moves Supreme Court to extend interim bail by 1 week for medical tests

Arvind Kejriwal seeks Supreme Court extension of interim bail by one week for medical tests in Delhi excise policy case amid ongoing ED investigation.

27 May, 2024 11:24 AM


Trending Business
Agarwal Family Plans to Sell Haldiram for Rs. 71,000 Crores as Next Generation Steps Back

The Agarwal family plans to sell Haldiram, valued at Rs. 71,000 crores, with a Blackstone-led consortium bidding. This marks India's largest private equity buyout.

21 May, 2024 03:32 PM
Trending Crime, Police And Law
13 Year old boy booked for impregnating 15 year old sister, after watching porn together

Minor siblings watch porn together brother rapes and impregnates sister. Police official probing the matter shared that the siblings tried to have sex for the first time in Dec 2023, but failed.

21 May, 2024 03:54 PM
Trending Judiciary
“Replacing colonial-era codes,” new criminal laws to come into effect on July 1

“Replacing colonial-era codes,” the new criminal laws to come into effect on July 1. However, Section 106(2) of the Bharatiya Nyaya Sanhita (BNS) has been put on hold. Read the full article to know why.

21 May, 2024 04:57 PM
Trending Judiciary
Offences Under Section 354D Ipc And Section 506 Ipc Are Personal To Parties: Rules Supreme Court

The Supreme Court quashed stalking and criminal intimidation charges to preserve marital ties, invoking Article 142, deeming the offences personal to the parties involved.

21 May, 2024 05:40 PM


Join Group

Signup for Our Newsletter

Get Exclusive access to members only content by email