ANDHRA PRADESH HIGH COURT: JUDGEMENT OF CIVIL COURT IS BINDING ON CRIMINAL COURT TO PROVE LEGALLY ENFORCEABLE DEBT SECTION 138 NI ACT

The Andhra Pradesh High Court in the case M/s. Kakinada Chit Funds (P) Ltd v. Sri Chukkala Satyanarayana And Anr. observed and has upheld the acquittal of an accused as stated under Section 138 Negotiable Instrument Act criminal case since the civil court had adjudicated that only the amount of Rs. 25,000/- was due but the cheque dishonoured was of Rs. 75,000. Thus, as the consequence of which, the important link was missing in evidence to connect the cheque for an amount of Rs. 75,000/- with that of legally enforceable debt pertaining to chit transaction.

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It being the case of the complainant that the accused joined as a subscriber in one of the Chits conducted by complainant for the chit value for an amount of Rs. 1 lakh. It was also alleged before the court that the accused in the case did not pay the instalments after receiving the prize money in the auction. Thus, the accused in the case issued a cheque for an amount of Rs. 70,000/- which being towards part payment of chit due to complainant but it was dishonoured as ‘Exceeds Arrangement’.