The Supreme Court, in one of its recent judgement, has observed that the production of the account books/cash book may not be relevant in a criminal case filed under Section 138 of the Negotiable Instruments Act.
CASE BACKGROUND
In the present case, the First Appellate Court reversed the Trial Court order in which the accused was convicted. The Appellate Court had held that the complainant didn’t produce cash and account books to prove that the amount was due and payable by the accused. The complaint was that the accused purchased the pesticides on credit from the company and made part payments by issuing a cheque, which when presented for collection returned with the endorsement “insufficient funds”.
The High Court, on the other hand, restored the Trial Court judgement 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.”
Being aggrieved the accused has prefered an appeal before the Supreme Court, it upheld the view and thus observed:“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.”
The judgement has been delivered by Justices R. Banumathi and AS Bopanna on 20-01-2020.
Read Judgement Here:
138-N.I.Act_
