The Karnataka High Court in the case titled as Rangaswamy vs. Ravi Kumar (Criminal Revision Petition No.841 of 2020) passed on 28^th of March 2024 has held that in a case of dishonour of cheque registered under the Negotiable Instruments Act when the defence of the accused is not believable, inference can be drawn by the Court that the accused made a transaction with the complainant and issued a cheque for the said transaction. The High Court observed thus while dismissing a petition filed by one Rangaswamy challenging the order of the conviction passed by the trial court under Section 138 of the act.

The bench noted that it is a settled principle of law that the accused has to rebut the presumption by leading the cogent and convincing evidence to substantiate his case. Rejecting the contention of the accused that cheques were issued to one Kantharaju and they had been misused by the complainant, the Court held “On careful reading of the evidence of DW.1, it is contended that he had issued a cheque to Kantharaju and those cheques have been misused by the complainant-Sri. Ravi Kumar and DW.2-Sri.Venkatesh. However, the accused has failed to produce any documents, both oral and documentary, regarding those cheques issued to Kantharaju. When the defence of the accused is not believable, inference can be drawn that he made a transaction with the complainant and issued a cheque for the said transaction.” Therefore, it can be lucidly comprehended that a mere contention of issuance of a cheque to another individual, but misused by a complainant, is to be substantiated by way of evidence, which can be either oral or documentary. In the absence of leading any evidence thereto, the defence of the accused is not believable and the Hon’ble Court can draw an inference that the cheque was issued by the accused to the Complainant pursuant to a transaction.