dishonour of cheques
P.C. Joshi
(Querist) 22 November 2009
This query is : Resolved
Friends,
I seek your guidance on the following issue.
A Ltd has filed two criminal suits abainst B for dishonour of two cheques. The cases are pending before the court.
B had earlier made payment by three drafts(prior to dishonour of the cheques in question). In the court B's produced copies of those DDs alongwith a covering letter stating that the DDs are gainst the dishonoured cheques. But this is not ture the DDs are aganist other dues and no such letter was given by B to a ltd. The court asks for evidence of A ltd either to accept or deny B's statement.
I want to know ;
In this case on whom burdon of proving genuineness of B claim lie whether on A Ltd or B.
What legal defences is available to A Ltd.
Regards
P.c. Joshi
Devajyoti Barman
(Expert) 22 November 2009
The proceeding u/s 138 of N.I.Act is based upon the principle of strict liability which in other words means that if a cheque is drawn then it is presumed that the cheque was drawn in discharge of a existing debt. However that presumption is always rebuttable which now happens in your case. So now the onus of proof has now shifted to A Ltd.Co. to prove that the said DDs were not in discharge of debt for which the cheques were drawn.
Raj Kumar Makkad
(Expert) 22 November 2009
I fully agree with the opinion of Devjyoti.
adv. rajeev ( rajoo )
(Expert) 23 November 2009
Burden lies of A co., because accused has relied on the documents, it is your turn to produce the books of a/cs to show that the DDs issued by the accused are not related to the debt for which accused has issued a cheque.
Adinath@Avinash Patil
(Expert) 23 November 2009
