E.K. Kunhammed Kutty v. K.V. Abdulla and State of Kerala
Case Details & Bench
- Court
- High Court of Kerala
- Hon'ble Judges
- N.K. Balakrishnan
- Judgment Date
- 2012-01-11
- Court Decision / Holding
- In the result, this appeal is allowed. While reversing the order of acquittal passed by the learned Magistrate, the first respondent/accused is found guilty of the offence punishable under Sec.138 of the NI Act and he is convicted thereunder. He is sentenced to undergo imprisonment till the rising of the court and to pay Rs.1,00,000/- as compensation to the complainant. The accused/first respondent will surrender before the learned Magistrate on or before 8.3.2012 to undergo imprisonment till the rising of the court and to deposit the amount of compensation as mentioned above.
- Final Disposition
- Conviction under Sec.138 NI Act; appeal allowed; acquittal reversed; imprisonment till rising; compensation of Rs.1,00,000; surrender by 8.3.2012.
Parties to the Case
Appellants / Petitioners
- E.K. Kunhammed Kutty
Respondents
- K.V. Abdulla
- State of Kerala represented by the Public Prosecutor
Legal Representation & Advocates
Counsels for Petitioners
- • S. Sunny Mathew
Counsels for Respondents
- • P.R. Sreejith
- • V.H. Jasmine
Case Synopsis & Summary
This is a criminal appeal under Sec.138 of the Negotiable Instruments Act filed by the complainant challenging an acquittal by the Magistrate. The accused allegedly issued Ext. P1, a cheque dated 31.12.1998 for Rs.1,00,000 in discharge of a debt arising from an agreement to sell property. The Magistrate acquitted the accused mainly on the finding that the alleged debt was time-barred and Ext. P1 could not be treated as discharge of a legally recoverable liability. The complainant relied on Ext. P7, an “agreement to sell” document, but the trial court did not deem Ext. P7 proved, and the complainant’s case on the basis of Ext. P7 was rejected. The appellant argued that the view in Joseph v. Devassia was overruled by Ramakrishnan v. Parthasaradhy, and that a cheque issuer acknowledges liability, so the debt cannot be defeated by mere limitation as long as the cheque is issued for the liability. The High Court noted that Ext. P7 did not stand proved, but it held that the core issue is the execution of Ext. P1 and the presumption under Sec.139 NI Act, which the prosecution can invoke upon proper execution. The High Court allowed the appeal, reversed the acquittal, convicted under Sec.138 NI Act, and imposed sentence and compensation, with remand refused for further evidence.
Provisions of Law Cited
Legal Doctrines & Maxims
- Presumption under Sec.139 NI Act that issuing a cheque acknowledges liability
- Acknowledgment of liability by issuing a cheque (affecting limitation)
Submissions & Arguments
Contentions of Appellants / Petitioners
The appellant submits that the Division Bench decision Ramakrishnan v. Parthasaradhy correctly states that when a person issues a cheque, he acknowledges liability to pay. The fact that the cheque is dishonoured does not permit him to claim the debt is time-barred. Ext. P7’s non-proof should not prevent conviction where Ext. P1’s execution is not seriously challenged, and the presumption under Sec.139 NI Act can be invoked after due execution. The debt, arising from an agreement to sell, can be proved through the cheque and the surrounding circumstances; remand should not be necessary since the evidence establishes due execution of Ext. P1 and passing of consideration, and statutory notice was issued and acknowledged.
Contentions of Respondents
The respondents contend that Ext. P7 was not proved and there was no witness to establish its due execution. They argue the accused did not mount the box and challenge the proof of execution and passing of consideration. The burden remained on the complainant to prove Ext. P1’s execution and the chain of events leading to payment. The absence of a timely reply to the statutory notice and the trial court’s view that the debt may be time-barred support the acquittal. They further argue for remand to enable the defence to adduce evidence, which the court below denied.
Cited Precedents (2)
| Case Name | Citation | Treatment | Explanation |
|---|---|---|---|
| Joseph v. Devassia | 2000 (3) KLT 533 | Overruled | The Division Bench overruled the earlier decision in Joseph v. Devassia by applying Ramakrishnan v. Parthasaradhy to hold that a cheque issuer cannot escape liability by claiming the debt is time-barred. |
| Ramakrishnan v. Parthasaradhy | 2003 (2) KLT 613 | Positive | This decision supports the proposition that issuing a cheque acknowledges liability and affects the treatment of debt despite potential limitation issues. |
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