ASHOK SINGH versus STATE OF UTTAR PRADESH & ANR. R1: STATE OF UTTAR PRADESH R2: RAVINDRA PRATAP SINGH

ASHOK SINGH versus STATE OF UTTAR PRADESH & ANR. R1: STATE OF UTTAR PRADESH R2: RAVINDRA PRATAP SINGH

The High Court erred in setting aside the concurrent findings of guilt by re-appreciating evidence and imposing on the complainant an obligation to prove his financial capacity at the threshold; the presumption under Sections 118 and 139 operated in favour of the complainant, the accused failed to rebut that presumption in a manner that raised reasonable doubt, the complaint was maintainable against the signatory partner who was the person in charge, and therefore the Trial Court and Appellate Court convictions were restored subject to modification of sentence to payment of a fine of Rs.32,00,000 within four months, failing which the original sentence and fine of Rs.35,00,000 would be...

Parties
Appellant/complainant: Ashok Singh; Respondent No.1: State of Uttar Pradesh; Respondent No.2/accused: Ravindra Pratap Singh
Jurisdiction
India
Judgment Date
01 April 2025
Procedural Posture
Criminal Appeal / Appeal Against High Court Judgment Setting Aside Conviction Under Section 138 NI Act
Outcome
Appeal allowed
Legal Topics
Cheque Dishonour, Onus of Proof, Statutory Presumption Under Sections 118 and 139, Maintainability of Complaint Against Signatory/partner, Source of Funds/financial Capacity of Complainant, Sentencing/mitigation
Negotiable Instruments Act, 1881 Criminal Law Evidence Cheque Dishonour Onus of Proof Statutory Presumption Under Sections 118 and 139 Maintainability of Complaint Against Signatory/partner Source of Funds/financial Capacity of Complainant +1 more

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Parties

Ashok Singh

Appellant/complainant

State of Uttar Pradesh

Respondent No.1

Ravindra Pratap Singh

Respondent No.2/accused

Procedural Posture

Criminal Appeal / Appeal Against High Court Judgment Setting Aside Conviction Under Section 138 NI Act

Legal Issues

  1. 1 Whether the High Court erred in setting aside concurrent findings of guilt and conviction under Section 138 of the Negotiable Instruments Act, 1881
  2. 2 Whether the complainant was obliged at the threshold to prove his financial capacity/source of funds for advancing the loan
  3. 3 Whether a complaint under Section 138 is maintainable against a signatory partner of a partnership firm without arraigning the firm

Ratio Decidendi

The High Court erred in setting aside the concurrent findings of guilt by re-appreciating evidence and imposing on the complainant an obligation to prove his financial capacity at the threshold; the presumption under Sections 118 and 139 operated in favour of the complainant, the accused failed to rebut that presumption in a manner that raised reasonable doubt, the complaint was maintainable against the signatory partner who was the person in charge, and therefore the Trial Court and Appellate Court convictions were restored subject to modification of sentence to payment of a fine of Rs.32,00,000 within four months, failing which the original sentence and fine of Rs.35,00,000 would be...

Court Disposition

Appeal allowed

Orders

  • Impugned High Court order dated 21.02.2024 is set aside
  • Concurrent findings of guilt and conviction recorded by the Trial Court and Appellate Court are reinstated