Synopsis

This judgment by the Gujarat High Court dismisses a criminal appeal filed by the original complainant against the acquittal of the accused in a case under Section 138 of the Negotiable Instruments Act, 1881 (NI Act). The complainant alleged that he had lent Rs. 2,00,000/- as a friendly loan to the accused, for which the accused issued a cheque that was dishonoured. The trial court acquitted the accused, and the High Court upheld this decision. The crucial factor was the complainant's own admission in cross-examination that the cheque in question was a blank, signed cheque and that it was actually given for a different purpose—as a refund for his daughter's registration with a marriage bureau run by the accused. This admission fatally contradicted his claim of a loan and rebutted the statutory presumption under Section 139 of the NI Act that the cheque was issued in discharge of a debt or liability.

1. Heading for the judgment

Citation: Harshadbhai Himmatbhai Joshi & Ors. v. The State (Notice to be served through) & Anr., R/Criminal Appeal No. 683 of 2007, decided on 18.03.2026 (Gujarat High Court)
Coram: Hon'ble Mr. Justice Sanjeev J. Thaker (Single Judge)
Core Law: Negotiable Instruments Act, 1881 (Section 138); Code of Criminal Procedure, 1973 (Section 378).

Gujarat High Court upholds acquittal under Section 138 NI Act, holds that complainant's admission about cheque being for a different purpose rebuts statutory presumption and defeats the claim.

2. Legal framework

This judgment provides a clear exposition of the law regarding the presumption under the NI Act and how it can be rebutted.

• Negotiable Instruments Act, 188

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