transaction
LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link

The High Court of Kerala has held that the presumption under section 139 of the Negotiable Instruments Act, 1881 (NI Act) applies even to a cheque issued by a guarantor, as it is being issued in discharge of legally enforceable debt.

In the case of AK Bhaskaran v KG Sheeba & Ors, a complaint was filed by Bhaskaran in the trial court against KG Sheeba, alleging an offence under section 138 of the NI Act.

In the complaint, it was alleged that Sheeba, who was the wife of the complainant’s friend, had borrowed ₹130,000 (US$1,825) from the complainant at the end of November 2003, agreeing to return the amount within a month. She then issued a cheque dated 13 February 2004 in favour of the complainant for the amount borrowed, which was not honoured by the bank due to insufficient funds.

The trial court ordered acquittal of the accused, since the complainant failed to prove that Sheeba had any financial transaction with him, and that the disputed transaction was only between the complainant and his friend, who was Sheeba’s husband.

You must be a subscribersubscribersubscribersubscriber to read this content, please subscribesubscribesubscribesubscribe today.

For group subscribers, please click here to access.
Interested in group subscription? Please contact us.

你需要登录去解锁本文内容。欢迎注册账号。如果想阅读月刊所有文章,欢迎成为我们的订阅会员成为我们的订阅会员

已有集团订阅,可点击此处继续浏览。
如对集团订阅感兴趣,请联络我们

The dispute digest is compiled by Bhasin & Co, a corporate law firm based in New Delhi. The authors can be contacted at lbhasin@gmail.com. Readers should not act on the basis of this information without seeking professional legal advice.

LinkedIn
Facebook
Twitter
Whatsapp
Telegram
Copy link