Sri. Badarinath N v. Vs M/S Siddarth Enterprises
Case brief
What is this about?
Complainant appealed acquittal in a cheque dishonour case under Section 138 NI Act. The accused admitted issuing two signed cheques as authorized signatory of M/s Siddartha Enterprises but claimed they were blank cheques issued on furniture supply and that he was not the proprietor. Relying on Bir Singh and Kalamani Tex, this Court held that admission of signature triggers presumptions under Sections 118 and 139, shifting the burden to the accused, and that an authorized signatory signing cheques cannot disown liability merely because the proprietor is not a party. Acquittal reversed; accused convicted, fined Rs.15,00,000/- with Rs.14,00,000/- as compensation.
What did the court decide?
Acquittal set aside; accused convicted under S.138 NI Act; fined Rs.15,00,000 within 8 weeks, default 1 year simple imprisonment; Rs.14,00,000 compensation to complainant.