‘Amount Due’ not required to be proved in a proceeding under Negotiable Instruments Act in the same manner as if proving debt before Civil Court

The Supreme Court has observed that a complainant in a cheque bounce case need not prove the ‘amount due’ as if he is to prove a debt before civil court. The said ratio was held in the matter of Uttam Ram vs. Devinder Singh Hudan [Criminal Appeal No. 1545 OF 2019 (Arising Out of SLP (CRL) NO. 3452 OF 2019)], decided on 17.10.2019.

Challenge

The case of the complainant before the Trial Court was that the accused purchased apple crops from him and the accounts were finally settled between him and the authorised agent of accused and a sum of Rs.5,38,856/- was found recoverable. As the cheque bounced, a complaint was filed before the Trial Court.

The Trial Court dismissed the complaint for the reason that cheque amount was more than the amount alleged on the due date when cheque was presented. This finding was arrived by the trial court after seeing contradiction in the number of cartons in the complaint as well as in the statement of the complainant. The High Court upheld the acquittal recorded by the Trial Court.

Held

The Apex Court observed in the present case that the accused had failed to lead any evidence to rebut the statutory presumption, a finding that was returned by both the Trial Court and the High Court. Further it was observed that both the Courts had erred in law and also committed perversity as the due amount was said to be disputed only on account of discrepancy in the cartons, packing material or the rate to determine the total liability.

Finally, it was held that as per the mandate of Section 138 of Negotiable Instruments Act, 1881 it is to be presumed that the cheques in question were drawn for consideration and the holder of the cheques received the same in discharge of an existing debt. The onus, thereafter, shifts on the accused to establish a probable defence so as to rebut such a presumption. Hence, it is not necessary for the Complainant to prove the amount due/ cheque amount as it needs to be assessed in proving debt/liability before a Civil Court.