Chand Kumar vs Chander Kala

Headnote AI-drafted · Editorially reviewed

This Criminal Appeal was preferred under Section 415 of the Bharatiya Nagarik Suraksha Sanhita, 2023 (BNSS) by the appellant-convict against a judgment of conviction dated 25th November 2024 and order on sentence dated 15th January 2025 passed by the learned Judicial Magistrate First Class, Rouse Avenue Court Complex, New Delhi, in a complaint case under Section 138 of the Negotiable Instruments Act, 1881. The Trial Court had convicted the appellant and directed him to pay compensation of Rs. 4,50,000/- to the respondent-complainant under Section 357(3) CrPC within one month, with a default sentence of simple imprisonment for two months.

The respondent-complainant alleged that in April 2015 she advanced Rs. 3,00,000/- as a friendly loan to the appellant. In discharge of the liability, the appellant issued cheque No. 729342 dated 07.09.2015 for Rs. 3,00,000/- drawn on State Bank of India, R.K. Puram, New Delhi, which was dishonoured with the remarks 'Funds Insufficient'. A statutory legal notice was duly served and the appellant replied denying his liability, contending he had mortgaged jewellery and had taken only Rs. 1,00,000/-. The appellant failed to make payment within the statutory period, resulting in the complaint being filed.

The appellant approached the appellate court seeking acquittal on various grounds. The court examined the entire record including pre-summoning and post-summoning evidence, the plea of the accused, and the defence raised, to determine whether the conviction and sentence recorded by the Trial Court warranted interference.

Catchwords: Section 138 Negotiable Instruments Act dishonour of cheque insufficient funds friendly loan compensation under Section 357(3) CrPC criminal appeal BNSS Section 415 legally enforceable debt presumption under NI Act cheque as security defence