Ashok Singh Vs State of Uttar Pradesh & Anr. (Supreme Court of India)
Supreme Court held that in the case under Section 138 of the Negotiable Instruments Act, 1881 [NI Act], complainant is not required to show evidence that he had the financial capacity. Accordingly, appeal of appellant allowed.
Facts- The appellant is the complainant. He alleged that he had advanced a loan of 22,00,000/- to the respondent no.2 on the assurance that the entire amount will be returned. When the appellant demanded return of the money, the accused issued Cheque, however, the same was dishonoured with the endorsement ‘payment stopped by drawer’ and the cheque along with receipt was returned. Subsequently, the appellant attempted to contact the accused seeking return of the money but the accused neither met him nor returned the money. The appellant sent a Legal Notice dated 18.05.2010 through Registered Post. However, the accused did not reply to the Notice. Hence, a complaint case was registered by the appellant.
The Trial Court vide Order dated 12.04.2019 found the accused guilty of having committed an offence u/s. 138 of the Negotiable Instruments Act, 1881 and sentenced him to one year of simple imprisonment along with fine of Rs.35,00,000/-. The appeal preferred by the accused was dismissed by the Appellate Court vide Order dated 23.10.2020 and the Order of the Trial Court was confirmed.
