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Criminal · Reportable judgment

M/s S.S. Production and Anr. P1: M/s S. S. Production P2: TR. S. Subbiah vs TR. Pavithran Prasanth

Court
Supreme Court of India
Date
1 October 2024
Case No.
Special Leave Petition (Criminal) No(s). 13981-13985 of 2024
Result
Dismissed
Bench
Sudhanshu Dhulia, Ahsanuddin Amanullah
Citation
[2024] 10 S.C.R. 2248 : 2024 INSC 1059
Acts & Sections
Negotiable Instruments Act, 1881
Supreme Court Reports [2024] 10 S.C.R. 2248 : 2024 INSC 1059
Issue for consideration
Issue arose as to whether the courts below were justified in convicting the petitioners u/s.138 of the Negotiable Instruments Act, 1881 for dishonour of cheques and sentencing them to six months of simple imprisonment and to pay the cheque amounts as compensation, in each of the complaints.
Headnote

Negotiable Instruments Act, 1881 – ss.138, 139 – Dishonour of cheque for insufficiency of funds – Petitioners borrowed certain sum in five instalments as a hand loan from the complainant and promised to repay the same on demand with interest – Issuance of five cheques in order to discharge the liability but the same got dishonoured on being presented by the complainant, with the endorsement ‘funds insufficient’ – Five complaints in respect of the five dishonoured cheques against the petitioners – Case of the petitioners that money was given to them in the course of producing a film jointly by the complainant and the petitioners and since the film failed, the cheques and receipts given by the petitioners were misused by the complainant – Trial court convicted the petitioners u/s.138 and sentenced them to six months of simple imprisonment and to pay the cheque amounts as compensation, in each of the complaints – Said order upheld by the courts below – Interference:

State (NCT) of Delhi v. Rajeev Sharma

Read the full headnote (1 more paragraph)

Held: Not called for – Reasoning of the courts below is sound that evidence had to be adduced by the petitioners that the said amounts were given for producing a film and were not by way of return of any loan taken, which was not done – Just by taking a counter-stand to raise a probable defence would not shift the onus on the complainant in such a case for the plea of defence has to be buttressed by evidence, either oral or documentary – Liability has to be discharged by the person concerned and that would be a legally enforceable debt repayable, under the purview of s.138 – If the amount were by way of investments in a film being jointly produced, the need per se to issue cheques, including interest would not have arisen at all, which has not been explained by the petitioners at all – Onus to first prove as to how the amount that is said to have been given by the complainant to the petitioners could have been given, would not be fatal as receipt of the amount has not been denied, much less disputed by the petitioners – No error in the High Court opining that in view of the denial by the General Power of Attorney holder of the complainant with regard to any joint deal/venture with the petitioners in film production, the onus would not shift on the complainant and would remain on the petitioners to prove that such receipt of money was not with regard to repayment of an amount legally due to the complainant – Accused have not been able to dislodge the statutory presumption u/s.139 – Exercising the judicial discretion, it is directed that the sentences of imprisonment awarded in each complaints, would run concurrently. [Paras 8-14]

Keywords: s.138 of the Negotiable Instruments Act, 1881 · Dishonour of cheques · Pay the cheque amounts as compensation · Dishonour of cheque for insufficiency of funds · Discharge the liability · Endorsement ‘funds insufficient’ · Capacity of complainant u/s.138 NI Act · Statutory presumption u/s.139 NI Act · Onus to prove amount legally due · Six months of simple imprisonment · Legally enforceable debt · Statutory presumption · Sentences to run concurrently · Judicial discretion

As published in the Supreme Court Reports, Supreme Court of India. Headnotes prepared by: Nidhi Jain. Text from the Indian Supreme Court Judgments open data set (Dattam Labs), CC BY 4.0.

Full Judgment Text

Judgment Ahsanuddin Amanullah, J. Delay condoned. 2. The present petition assails the common Final Judgment and Order dated 15.06.2023 in Crl. R. C. Nos.394-396, 403 & 406 of 2020 (hereinafter referred to as the ‘Impugned Order’) passed by the High Court of Judicature at Madras (hereinafter referred to as the ‘High Court’), whereby the five Criminal Revision cases filed by the petitioners were dismissed and the conviction and sentence, as awarded by separate Judgments and Orders dated 31.10.2017 passed by the Metropolitan Magistrate (Fast Track Court III), Saidapet, Chennai (hereinafter ref
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