M.S. NARAYANAN MENON @ MANI versus STATE OF KERALA AND ANR.

M.S. NARAYANAN MENON @ MANI versus STATE OF KERALA AND ANR.

The accused discharged the initial burden by raising a probable defence that the cheque was issued as security and not in discharge of debt. Complainant failed to prove his case and did not maintain or produce statutory books of account as required. As such, Section 138 of the Negotiable Instruments Act is not attracted.

Parties
Appellant: M.S. Narayanan Menon @ Mani; Respondent: State of Kerala; Respondent: Midhu and Midhun's Co. (Second Respondent, member of Cochin Stock Exchange)
Jurisdiction
India
Judgment Date
04 July 2006
Procedural Posture
Criminal Appeal / Supreme Court Decision
Outcome
Appeal allowed; conviction and sentence set aside.
Legal Topics
Section 138 Negotiable Instruments Act, Presumption of Consideration, Burden of Proof Under Section 139, Revisional/appellate Jurisdiction
Criminal Law Negotiable Instruments Section 138 Negotiable Instruments Act Presumption of Consideration Burden of Proof Under Section 139 Revisional/appellate Jurisdiction

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Parties

M.S. Narayanan Menon @ Mani

Appellant

State of Kerala

Respondent

Midhu and Midhun's Co. (Second Respondent, member of Cochin Stock Exchange)

Respondent

Procedural Posture

Criminal Appeal / Supreme Court Decision

Legal Issues

  1. 1 Whether the cheque was issued in discharge of debt or as security
  2. 2 Burden and standard of proof under Sections 138 and 139 of the Negotiable Instruments Act
  3. 3 Appellate/revisional jurisdiction of the High Court

Ratio Decidendi

The accused discharged the initial burden by raising a probable defence that the cheque was issued as security and not in discharge of debt. Complainant failed to prove his case and did not maintain or produce statutory books of account as required. As such, Section 138 of the Negotiable Instruments Act is not attracted.

Court Disposition

Appeal allowed; conviction and sentence set aside.

Orders

  • Impugned judgment set aside.
  • Appellant discharged from bail bonds.