Manav Kapoor vs Veer Bahadur Prajapati on 10 July, 2026

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    Delhi District Court

    Manav Kapoor vs Veer Bahadur Prajapati on 10 July, 2026

      IN THE COURT OF MS. SHEETAL CHAUDHARY PRADHAN
          ADDL. SESSIONS JUDGE-02 : SOUTH EAST DISTRICT
                    SAKET COURT : NEW DELHI
    
                                                    Criminal Appeal No.379/2025
                                                                     PS H N Din
                                                                 U/s 138 NI Act
    
    Manav Kapoor
    S/o Sh. Jswant Kapoor
    R/o 4/57, 3rd Floor,
    Geeta Colony, Delhi - 110031.
    Presently at House no. 22/5, Pant Nagar,
    Jangpura Extension, South Delhi - 110014.
                                                          .... Appellant
                                          Versus
    Veer Bahadur Prajapati
    S/o Ram Asees Prajapati
    R/o House No. 118, Vinay Nagar,
    Gali No. 4, Near Golden India Public School,
    Faridabad, Haryana - 121006.
                                                          .... Respondent
    
    
    
            Date of Institution       :      20.09.2025
            Date of Arguments         :      02.04.2026
            Date of Judgment          :      10.07.2026
            Decision                  :      Appeal dismissed.
                                             Impugned judgment of acquittal of
                                             the Ld. Trial Court stands upheld
    
                                    JUDGMENT
    

    1. Present matter was received by way of transfer in pursuance of the
    order dated 02.09.2025 passed by Hon’ble High Court of Delhi.

    2. Appellant namely Manav Kapoor has filed present appeal against
    respondent namely Veer Bahadur Prajapati thereby challenging

    SPONSORED

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 1 of 39
    impugned judgment of acquittal dated 31.01.2023.

    3. Appellant herein was complainant before Ld. Trial Court and
    respondent herein was accused before Ld. Trial Court. In order to
    avoid confusion, parties will be referred with the same
    nomenclature with which they were referred before Ld. Trial
    Court, in my subsequent paragraphs.

    4. The complainant filed the complaint u/s 138 NI Act before the Ld.
    Trial Court on 15.01.2022 and summoning order was passed
    against the respondent on 17.02.2022, the same was passed.
    Accused appeared before the Ld. Trial Court on 18.04.2022 and
    matter was listed for framing of notice. Notice was framed u/s 138
    NI Act on 28.04.2022 and matter was listed for complainant
    evidence. CW1 Manav Kapoor was examined and cross examined
    and discharged on 18.05.2022 and on the same date complainant
    evidence was closed. On 18.05.2022 statement of accused was
    recorded and matter was listed for DE. Accused examined himself
    as DW1, and Satish Singh as DW2 and after cross examination of
    both witnesses, DE was closed on 03.09.2022.

    5. Case of complainant in brief was that the complainant and accused
    person were known to each other for past many years and the
    complainant was having good friendly relations with the accused
    person and on that account, the accused gained the faith and
    confidence of the complainant. That on 01.03.2019, the accused
    had borrowed a sum of Rs. 7,00,000/- (Rupees Seven Lakhs Only)
    as a friendly and interest free loan from the complainant for a

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 2 of 39
    period of one year for the purpose of business expansion and
    believing upon his requests and representations and keeping in
    view the old and cordial friendly relations with the accused person,
    the complainant was trapped in his honey talks and decided to help
    him in his hard times and had duly acted in good faith as a true
    friend and gave Rs. 7,00,000/- to the accused person. That soon
    after the stipulated time got elapsed the complainant started
    requesting the accused to return his hard earned money and on his
    repeated requests and several phone calls on 26.09.2021 the
    accused handed Rs. 20,000/- cash to the complainant and had
    issued 2 Cheques dated 29.09.2021 bearing number 052105″ for an
    amount of Rs. 3,40,000/- each to be drawn upon “CENTRAL
    BANK OF INDIA, Baital Baitalpur Branch Deoria-274201 and
    assured the complainant that the aforesaid Cheque will be duly
    honored on their presentations. That the accused person in order to
    honor his admitted liability had transferred an amount of Rs.
    3,40,000/- through RTGS in to the bank account the complainant
    and therefore, one cheque was returned back to the accused person
    upon realization of the half amount in good faith and one was kept
    with him for the realization of the balance amount. That believing
    upon the promises made by the accused person, the complainant
    had presented the above said Cheque for encashment in his bank
    i.e. HDFC Bank at K-2 Jungpura Extension New Delhi-110014
    and to his utter shock and dismay the aforementioned Cheque
    bearing number “052105” dated 29.09.2021 has been returned back
    unpaid from the Bank of the accused due to the reason
    “PAYMENT STOPPED BY DRAWER” vide return memo dated
    23.11.2021 and the same was communicated to him through calls

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    and messages. That the complainant contacted the accused and
    intimated him about dishonoring of his cheque and requested him
    to pay back the loan amount but the accused avoided the requests
    of the complainant on one pretext or the other. That after so many
    reminders, the accused failed to discharge his admitted liability,
    therefore finding no other way the complainant sent a legal notice
    to the accused at his two known addresses demanding therein the
    payment of Rs. 3,40,000/- (Rupees Three Lac Forty Thousand
    Only) along with legal expenses within 15 days of the receipt of
    the said legal notice. That the accused upon receiving the legal
    notice sent by the Complainant had sent a reply dated 20.12.2021
    against the aforesaid legal notice to the counsel for the
    complainant. That the complainant further submits that he had
    presented the said cheque within the time period as prescribed
    under the Negotiable Instruments Act, 1881 and the said cheque
    issued by the accused got dishonored with the remarks
    “PAYMENT STOP BY DRAWER” and further the accused has
    failed to make the payment of the sum covered under the
    dishonored cheque within 15 days from the date of receipt of the
    legal/demand notice. Therefore, the accused person has committed
    the offense punishable under section 138 of the Negotiable
    Instruments Act, 1881.

    PROCEEDINGS BEFORE LD. TRIAL COURT

    6. After filing of complaint, Ld. Trial Court took cognizance of
    offence and recorded pre-summoning evidence, based on which,
    accused was summoned. Subsequently, proceedings u/sec. 207
    CrPC were completed and accused was given Notice u/sec. 251

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 4 of 39
    Cr.P.C. on 28.04.2022 for the alleged offence, to which, he
    pleaded not guilty and claimed trial. During, the framing of notice
    accused claimed that he had taken Rs. 3 Lakhs without interest
    from the complainant due to illness of his wife in November, 2019.
    Later on the complainant demanded interest from him and he
    transferred Rs. 3,40,000/- in lieu of loan of Rs. 3 Lakhs through
    RTGS. He had given the cheque in question as security on
    29.09.2021 towards the repayment of loan. After that he
    transferred Rs. 3,40,000/- through RTGS and demanded return of
    cheque but the complainant did not return the same and threatened
    him, thus he had stopped payment against the cheque in question.
    The Complainant has misused his cheque. Thereafter, matter was
    fixed for post summoning complainant evidence.

    7. In his evidence, complainant examined himself as CW1 and
    tendered in evidence his affidavit Ex.CW1/A in which, he
    reiterated the contents of his complaint. Same are not repeated here
    for the sake of brevity. He relied upon documents viz. original
    cheque dated 29.09.2021 as Ex. CW1/1, original return memo
    dated 23.11.2021 as Ex. CW1/2, Legal demand notice dated
    06.12.2021 as Ex. CW1/3 alongwith postal receipts Ex. CW1/4
    and returned envelope Ex. CW1/5 and tracking report as Ex.
    CW1/6 (colly), reply to legal demand notice Ex. CW1/7 and
    original hand written letter of the accused as Ex. CW1/8.

    8. After examining, himself, complainant closed his evidence and
    matter was fixed for recording of statement of accused u/sec. 313
    CrPC r/w Section 281 Cr.P.C. which was recorded on 18.05.2022.

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    During the aforesaid statement accused deposed that “I had already
    return the loan amount to the complainant and I also took receiving
    from the complainant while giving the cheque in question to the
    complainant. Ex. CW1/8 was written by me as was threatened by
    complainant to do so. Complainant has 4-5 bouncers. They made
    me write this document at gun point after locking me in the
    basement. Complainant has threatened me several times that he
    will kill me and he will not let me run my shop.”

    9. Defence evidence was led by accused/respondent, wherein he
    adopted his statement U/s 313 CrPC and examined himself as
    DW1.

    10.DW1 Veerbahadur Prajapati deposed that ” I further state that I had
    taken Rs. 3 Lakhs from the complainant in year 2019 for delivery
    of my wife. The complainant is engaged in business of
    advancement of loan in GK and I became acquainted with the
    complainant there only. The amount of Rs. 3 Lakh was advanced
    by the complainant without any interest. No written agreement was
    executed by the complainant regarding the same. However, later
    on the complainant started demanding interest 1-2 months after the
    advancement of loan. I had started returning the part of the loan
    amount since December, 2019 which is already part of record. as
    Mark B (Colly) which is now Ex. DWI/A (Colly) Against the loan
    of Rs. 3 Lakh advanced by the complainant, I have already
    returned him Rs.3,40,000/- at once by RTGS on 05.10.2021.
    Rs.20,000/- second time in cash on 26.09.2021 and approximately
    Rs.1,56,000/ or Rs.1,57,000/- in several installments third time I

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    had given this much of amount against the loan of rs. 3 Lakh as the
    complainant told me that he had adjusted the amount of Rs.
    Rs.1,56,000/- or Rs. 1,57,000/- paid by me in several installment
    towards interest. I had given the cheque in question to the
    complainant on 26.09.2021 when he started quarreling with me at
    my shop for repayment of loan amount. He assured me to return
    my cheque upon receiving the payment through RIGS. I had also
    taken receiving from the complainant when I had given the cheque
    in question to him which is part of record as Mark A now Ex.
    DW1/B. After transferring the payment of Rs. 3,40,000/- to the
    complainant by way of RTGS I demanded return or my cheque
    from him, however, he did not return the same and started
    threatening me and thereafter, I gave stop payment instructions to
    my bank against the said cheque. The complainant had also
    obtained my signatures on Ex. CW1/8 and he also threatened to do
    away with my life. I had received legal demand notice from the
    complainant and I had also replied the same which is part of record
    as Ex. CW1/7.”

    11.DW2 Satish Singh deposed that ” I know the accused since last 20
    years. Accused is running a business of sale of sweet patato and
    corn at New Delhi. I know the complainant since last 10 years. The
    complainant is engaged in business of money landing. In August,
    2021 I visited the shop of Accused being a regular customer, I saw
    the accused and complainant fighting with each other. I asked the
    accused what is going on here and he informed me that he had
    taken the amount of Rs. 3 Lakhs from the complainant. Then, I
    told the accused to return the money of the complainant. The

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    accused assured to return the said amount and sought time for the
    same and the dispute was closed. After one week of the said
    incident, the accused had given the cheque of Rs. 3,40,000/- to the
    complainant in my presence in Aug August, 2021 But the
    complainant was not ready to accept the cheque without any
    security. Thereafter, the complainant called a meeting of 4-5
    persons after few days and I was also called by the accused in the
    said meeting held at Pan Shop nearby GK-1 where the accused was
    running his business. I reached there after 15 minutes of staring of
    meeting and saw that the complainant was threatening the accused
    in one basement and the complainant forced the accused to execute
    a hand written document regarding the repayment of the said loan.
    I also signed on the said document on the asking of the
    complainant. I was told that they have reached to an amicable
    settlement. I had not read the said document. Accused told me that
    he had taken loan of Rs. 3 Lakhs from the complainant and in lieu
    of the same he had given one cheque of Rs. 3,40,000/-towards
    repayment of this loan amount of Rs.3 Lakhs. No written
    document was executed at the time of handing over of the cheque.

    12.After hearing final arguments, Ld. Trial Court acquitted the
    accused vide impugned judgment.

    13.Subsequently, present appeal was preferred by accused.

    GROUNDS OF CHALLENGE

    14.Ld. Counsel for appellant/complainant has taken following
    grounds challenging the impugned order.

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    A. That the Ld. Trial Court did not consider that the impugned
    judgment dated 31.01.2023 in Criminal Complaint No.CC NI
    ACT/409/2022 in the matter titled as Manav Kapoor vs Veer
    Bahadur Prajapati
    has been wrongly passed by the lower court by
    way of floating twice the provisions laid down under the law.
    B. That the Ld. Trial Court did not consider that the facts and
    contentions of the Appellant/Complainant and the law applicable
    thereto in the final judgement dated 31.01.2023 thereby resulting
    in grave injustice to the Appellant.

    C. That the Ld. Trial Court has passed the impugned judgement on
    the erroneous reading of the law on the subject. The impugned
    Judgement and order of acquittal is not sustainable either in equity
    or in law.

    D. That the Ld. Trial Court did not consider that in the matter of
    Subhash Chand V/s State (Delhi Administration) (2013) 2 SCC 17,
    it was held that once a case is instituted on a complaint and an
    order of acquittal is passed, whether the offence be bailable or non-
    bailable, cognizable or non-cognizable, the complainant can file an
    application under Section 378(4) of the Cr.P.C. for Special Leave
    to Appeal against an order of acquittal of any kind only in the High
    Court.

    E. That the Ld. Trial Court ought to have considered that
    respondent has failed to establish any defence raised by him
    throughout the trial and has miserably falled to establish that he
    had taken the friendly loan for his wife’s treatment and not for the
    purpose of business expansion.

    F. That the Ld. Trial Court did not consider that as per the
    respondent, he has claimed that he has repaid the entire loan

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    amount by transferring Rs. 3,40,000/-(Rupees Three Lakhs Forty
    Thousand Only) by way of RTGS in favor of the Appellant as he
    had only taken loan of Rs. 3. Lakhs from the Appellant, however,
    this version of respondent is not in consonance with contents of
    Exhibit CW-1/8 execution of which has been admitted by the 26
    respondent himself during the trial.

    G. That the Ld. Trial Court did not consider that the respondent has
    admitted the particulars filed in the cheque as well as the signature
    on the cheque.

    H. That the Ld. Trial Court did not consider that if it is proved that
    the cheque belong to the Accused and if the signature in the cheque
    is also not Disputed, then a legal presumption would arise in
    favour of the complainant that the said cheque has been issued by
    the accused in discharge of a debt or liability. However, the said
    presumption is rebuttable in nature.

    I. That the Ld. Trial Court did not consider that the EX-CW1/8 was
    duly admitted by the accused /respondent and the final outcome of
    the cross examination clears the cloud that neither the accused was
    beaten up by anyone nor threatened to do away with his life in his
    presence.

    J. That the Ld. Trial court has not taken into consideration that the
    presumption under Section 139 of the N.I. Act in favor of the
    appellant and that the onus would be upon the respondent to rebut
    the presumption and for that, the respondent has to lead the
    evidence, however in the facts of the case not a single evidence has
    been led by the respondent to rebut the presumption under section
    139
    of the Act.

    K. That the Ld. Trial Court did not consider that the Supreme

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    Court in Modi Cements Ltd V. Κ.Κ. Nandi [1998]92 Comp Cas
    88;[1998] 1 KLT 582 (SC) held that once the cheque is issued by
    the drawer there would be a presumption under Section 139 of the
    Negotiable Instruments Act and the stoppage of payment will not
    preclude an action under Section 138 of the Act. So, in this case in
    which there is sufficient evidence to come to the conclusion that
    the respondent committed the offence punishable under Section
    138
    of the Negotiable Instruments Act. Hence the order of
    acquittal passed by the learned Metropolitan Magistrate has to be
    reversed and the accused shall be convicted for the offence
    punishable under Section 138 of the NI Act.

    L. That the Ld. Trial Court did not consider that the ordinarily in
    cheque bouncing cases, what the courts have to consider is whether
    the ingredients of the offence enumerated in Section 138 of the Act
    have been met and if so, whether the respondent was able to rebut
    the statutory presumption contemplated by Section 139 of the Act.
    With respect to the facts of the present case, it must be clarified
    that contrary to the trial court’s finding, Section 138 of the Act can
    indeed be attracted when a cheque is dishonoured on account of
    ‘stop payment’ instructions sent by the respondent to his bank in
    respect of a post-dated cheque, irrespective of insufficiency of
    funds in the account. This position was clarified by this Court in
    Goa Plast (Pvt.) Ltd. v. Chico Ursula D’Souza, 2003(2) RCR
    (Criminal) 131: 2004(1) Apex Criminal 55: (2003) 3 SCC 232.

    M. That the Ld. Trial Court did not consider that the Hon’ble Delhi
    High Court in Barun Kumar v. State of NCT of Delhi, 2021 SCC
    Online Del 3498 has held that the fact that the loan is given in
    violation of Section 269 SS of the Income Tax Act does not mean

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 11 of 39
    that the court cannot look into the documents at all further held that
    offence under Section 269 SS of the Income Tax Act at best makes
    an offence under Section 271 D of the IT Act but does not mean
    that the loan has not been given by the Appellant to the opposite
    party.

    N. That the Ld. Trial Court has wrongly accepted the inconsistent
    contentions of the respondent and has materially erred in not taking
    into consideration that the presumption of legally enforceable debt
    under Section 139 has to be rebutted by adducing cogent evidence
    and mere surmises and conjectures cannot be said to have rebutted
    the presumption in favour of the appellant. That the Ld. Trial Court
    has indulged in mere ipsi-dixit in pronouncing the impugned order,
    judgement of acquittal. That the Appellant/Appellant craves leave
    to add, alter, amend or delete any ground or grounds at the time of
    hearing, in the interest of justice.

    15.During the course of arguments, Ld. Counsel for appellant relied
    upon the judgment in case Ashok Singh Vs. State of Uttar Pradesh
    & Anr.
    2025 LAW PACK (SC) 70793 in para no.22 & 23 wherein
    it has been held that:-

    “22. The High Court while allowing the criminal revision
    has primarily proceeded on the presumption that it was
    obligatory on the part of the complainant to establish his
    case on the basis of evidence by giving the details of the
    bank account as well as the date and time of the withdrawal
    of the said amount which was given to the accused and also
    the date and time of the payment made to the accused,
    including the date and time of receiving of the cheque,
    which has not been done in the present case. Pausing here,
    such presumption on the complainant, by the High Court,

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    appears to be erroneous. The onus is not on the
    complainant at the threshold to prove his capacity/financial
    wherewithal to make the payment in discharge of which the
    cheque is alleged to have been issued in his favour. Only if
    an objection is raised that the complainant was not in a
    financial position to pay the amount so claimed by him to
    have been given as a loan to the accused, only then the
    complainant would have to bring before the Court cogent
    material to indicate that he had the financial capacity and
    had actually advanced the amount in question by way of
    loan. In the case at hand, the appellant had categorically
    stated in his deposition and reiterated in the cross-
    examination that he had withdrawn the amount from the
    bank in Faizabad (Typed Copy of his deposition in the
    paperbook wrongly mentions this as ‘Firozabad’). The
    Court ought not to have summarily rejected such stand,
    more so when respondent no.2 did not make any serious
    attempt to dispel/negate such stand/statement of the
    appellant. Thus, on the one hand, the statement made
    before the Court, both in examination-in-chief and cross-
    examination, by the appellant with regard to withdrawing
    the money from the bank for giving it to the accused has
    been disbelieved whereas the argument on behalf of the
    accused that he had not received any payment of any loan
    amount has been accepted. In our decision in M/s S. S.
    Production v. Tr. Pavithran Prasanth
    , 2024 INSC 1059, we
    opined:

    ‘8. From the order impugned, it is clear that though the
    contention of the petitioners was that the said amounts were
    given for producing a film and were not by way of return of
    any loan taken, which may have been a probable defence
    for the petitioners in the case, but rightly, the High Court
    has taken the view that evidence had to be adduced on this

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    point which has not been done by the petitioners. Pausing
    here, the Court would only comment that the reasoning of
    the High Court as well as the First Appellate Court and
    Trial Court on this issue is sound. Just by taking a counter-
    stand to raise a probable defence would not shift the onus
    on the complainant in such a case for the plea of defence
    has to be buttressed by evidence, either oral or
    documentary, which in the present cases, has not been
    done. Moreover, even if it is presumed that the complainant
    had not proved the source of the money given to the
    petitioners by way of loan by producing statement of
    accounts and/or Income Tax Returns, the same ipso facto,
    would not negate such claim for the reason that the cheques
    having being issued and signed by the petitioners has not
    been denied, and no evidence has been led to show that the
    respondent lacked capacity to provide the amount(s) in
    question. In this regard, we may make profitable reference
    to the decision in Tedhi Singh v Narayan Dass Mahant,
    (2022) 6 SCC 735:

    ’10. The trial court and the first appellate court have noted
    that in the case under Section 138 of the NI Act the
    complainant need not show in the first instance that he had
    the capacity. The proceedings under Section 138 of the NI
    Act is not a civil suit. At the time, when the complainant
    gives his evidence, unless a case is set up in the reply
    notice to the statutory notice sent, that the complainant did
    not have the wherewithal, it cannot be expected of the
    complainant to initially lead evidence to show that he had
    the financial capacity. To that extent, the courts in our view
    were right in holding on those lines. However, the accused
    has the right to demonstrate that the complainant in a
    particular case did not have the capacity and therefore, the
    case of the accused is acceptable which he can do by

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    producing independent materials, namely, by examining his
    witnesses and producing documents. It is also open to him
    to establish the very same aspect by pointing to the
    materials produced by the complainant himself. He can
    further, more importantly, achieve this result through the
    cross-examination of the witnesses of the complainant.
    Ultimately, it becomes the duty of the courts to consider
    carefully and appreciate the totality of the evidence and
    then come to a conclusion whether in the given case, the
    accused has shown that the case of the complainant is in
    peril for the reason that the accused has established a
    probable defence.’ (emphasis supplied)’ (underlining in
    original; emphasis supplied by us in bold)

    23. In the present case, on an overall circumspection of the
    entire facts and circumstances of the case, we find that the
    appellant succeeded in establishing his case and the Orders
    passed by the Trial Court and the Appellate Court did not
    warrant any interference. The High Court erred in
    overturning the concurrent findings of guilt and
    consequential conviction by the Trial Court and the
    Appellate Court.”

    ARGUMENTS ON BEHALF OF APPELLANT

    16.It has been argued on behalf of appellant that he was known to the
    accused/respondent and had given friendly loan by way of cash to
    the accused for an amount of Rs.7,00,000/-. Further, the accused
    returned the aforesaid amount by giving Rs.20,000/- as cash,
    Rs.3,40,000/- by way of RTGS and remaining amount of
    Rs.3,40,000/- was promised to be paid by way of cheque, which
    was subsequently dishonoured. However, the amount was not
    returned and for the same accused issued a cheque for an amount
    of Rs.3,40,000/- to discharge his legal liability. Further, the cheque

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    in question was dishonoured due to fund insufficient. Upon the
    aforesaid facts he had filed the complaint. It has been argued that
    the issuance of cheque and signatures on the cheque is already
    admitted by the accused and therefore, statutory presumption is
    against the accused. It has been argued that the accused has not
    discharged the burden of proof and therefore, he is liable to be
    convicted and the impugned order and judgment dated 31.01.2023,
    acquitting the accused is liable to be set aside.

    ARGUMENTS ON BEHALF OF RESPONDENT

    17.On the other hand, it has been argued on behalf of
    accused/respondent that the accused has been falsely implicated
    and he had already returned the amount taken from the accused.
    The accused had refuted the submissions made on behalf of
    complainant and has denied that he had taken a loan of Rs.7 Lakhs.
    The accused has stated that he had taken loan amount of Rs.3
    Lakhs from the complainant during November-December, 2019. It
    has also been argued that for the amount of Rs.3 Lakh accused had
    already paid an amount of Rs.5Lakh approximately. He had paid
    an amount of Rs.3,40,000/- by way of RTGS and Rs.20,000/- by
    way of cash which is already admitted by the complainant and had
    even paid more amount upon being forced by the complainant.
    Further, it has been argued that the present appeal is devoid of
    merit and is liable to be dismissed and that the judgment regarding
    acquittal of the accused passed by Ld. Trial Court is liable to be
    upheld.

    18.It is further submitted that since the reasonable doubt with respect

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 16 of 39
    to the existence of the legally enforceable debt has been created,
    the presumption under Section 139 read with Section 118 of the
    Negotiable Instruments Act, 1881 stands rebutted, and the burden
    to prove the existence of such legally enforceable debt shifts from
    the shoulders of the Accused of the Section 138 proceedings falls
    upon the shoulder of the Complainant of such proceedings. It is
    further submitted that once the presumption under Section 139
    read with Section 118 of the Negotiable Instruments Act, 1881
    stands rebutted, and the Complainant of the proceedings fails to
    prove the existence of the debt, the case under Section 138 is liable
    to be dismissed.

    19.It has further been argued that, the Appellant herein has miserably
    failed in proving the existence of the legally enforceable debt,
    which has been categorically recorded by the Ld. Trial Court in
    Paragraph No.20 and 26 of the Impugned Judgment, and hence, it
    is abundantly clear that the Respondent has successfully created
    the doubt towards the existence of the Legally Enforceable Debt,
    which is a crucial aspect of the prosecution under Section 138 of
    the Negotiable Instruments Act, 1881, and once such doubt is
    created, the presumption of the existence of such debt under
    Section 139 stands rebutted, and once the same is rebutted, the
    Appellant burden to prove the existence of the such legally
    enforceable debt falls upon the Appellant, and in this case, the
    Appellant has failed miserably in the same, and hence, the Ld.
    Trial Court has rightly dismissed the complaint of the Appellant
    herein.

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 17 of 39

    20.Ld. Counsel for respondent in support of the aforementioned
    contentions rely upon the findings of the judgements passed by the
    Hon’ble Supreme Court of India K.N. Beena vs. Muniyappan
    [(2001) 8 SCC 458]; Basalingappa vs. Mudibasappa [(2019) 5
    SCC 418]; K. S. Ranganatha vs. Vittal Shetty [(2022) 16 SCC
    683]; Dashrathbhai Trikambhai Patel vs. Hitesh Mahendrabhai
    Patel & Anr.
    [(2023) 1 SCC 578].

    FINDINGS

    21.Before proceeding further, I must mention the relevant law
    pertaining to sec. 138 NI Act.

    22.In order to appreciate and decide present appeal, I find it relevant
    to mention here law relating to Section 138 NI Act and with
    respect to the presumptions U/s. 118 (a) and 139 NI Act. The said
    provisions and the interpretations given by higher echelon of
    Judiciary, are relevant. Therefore, they are mentioned below:-

    “138 Dishonour of cheque for insufficiency, etc., of
    funds in the account,- Where any cheque drawn by
    a person on an account maintained by him with a
    banker for payment of any amount of money to
    another person from out of that account for the
    discharge, in whole or in part, of any debt or other
    liability, is returned by the bank unpaid, either
    because of the amount of money standing to the
    credit of that account is insufficient to honour the
    cheque or that it exceeds the amount arranged to
    be paid from that account by an agreement made

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 18 of 39
    with that bank, such person shall be deemed to
    have committed an offence and shall, without
    prejudice to any other provisions of this Act, be
    punished with imprisonment for (a term with may
    be extended to two years), or with fine which may
    extend to twice the amount of the cheque, or with
    both: Provided that nothing contained in this
    section shall apply unless-

    (a) the cheque has been presented to the bank within a
    period of six months from the date on which it is
    drawn or within the period of its validity,
    whichever is earlier;

    (b)the payee or the holder in due course of the
    cheque, as the case may be, makes a demand for
    the payment of the said amount of money by
    giving a notice in writing, to the drawer of the
    cheque, (within thirty days) of the receipt of
    information by him from the bank regarding the
    return of the cheque as unpaid; and

    (c) the drawer of such cheque fails to make the
    payment of the said amount of money to the payee
    or, as the case may be, to the holder in due course
    of the cheque, within fifteen days of the receipt of
    the said notice.”

    23. Hon’ble Apex Court had the occasion to appreciate and
    interpret aforesaid provision in case titled as Kusum Ingots and
    Alloys Ltd. Vs. Pennar Peterson Securities Ltd.
    (2000) 2 SCC 745.

    In the said judgment Hon’ble court observed that in order to

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 19 of 39
    successfully prosecute the drawer of a cheque for an offence U/s.
    138 NI Act, following facts are required to be proved successfully.

    “a) A person must have drawn a cheque on an
    account maintained by him in a bank for payment
    of a certain amount of money to another person
    from out of that account for discharge of any debt
    or other liability.

    b) That cheque has been presented to the bank
    within a period of six months from the date on
    which it is drawn or within the period of its
    validity, which ever is earlier.

    c) That cheque is returned by the bank unpaid,
    either because the amount of money standing to
    the credit of the account is insufficient to honour
    the cheque or that it exceeds the amount arranged
    to be paid from that account by an agreement
    made with the bank.

    d) The payee or the holder in the due course of the
    cheque makes a demand for the payment of the
    said amount of money by giving a notice in
    writing to the drawer of the cheque, within 15
    days of the receipt of the information by him
    from the bank regarding the return of the cheque
    as unpaid.

    e) The drawer of such cheque fails to make payment
    of the said amount of money to the payee or the
    holder in due course of the cheque within 15 days
    of the receipt of said notice……….”

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 20 of 39
    “………….Judicial statements have deferred as to the
    quantum of rebutting evidence required.
    In
    Kundun Lal Rallaram Vs. Custodian, Evacuee
    Property, Bombay AIR 1961 SC 1316, this Court
    held that the presumption of law under Section
    118
    of presumption of fact raised under Section
    114
    of the Evidence Act. The decision must be
    limited to the facts of that case. The more
    authoritative view has been laid down in the
    subsequent decision of the Constitution Bench in
    Dhanvantrai Balwantrai Desai v. State of
    Maharashtra
    : 1964 Cri.
    L 1437 : 1964 Cril 1437,
    where this Court reiterated the principle
    enunciated in State of Madras v. Vaidyanath Iyer
    (supra) and clarified that the distinction between
    the two kinds of presumption lay not only in the
    mandate to the Court, but also in the nature of
    evidence required to rebut the two. In the case of
    a discretionary presumption the presumption if
    drawn may be rebutted by an explanation which
    “might reasonably be true and which is
    consistent with the innocence” of accused.
    On the
    other hand in the case of mandatory presumption
    “the burden resting on the accused person in such
    a case would not be as light as it is where a
    presumption is raised under S.114 of the
    Evidence act and cannot be held to be discharged
    merely by reason of the fact that the explanation

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 21 of 39
    offered by the accused is reasonable and
    probable. It must further be shown that the
    explanation is a true one. The words ‘unless the
    contrary is proved’ which occur in this provision
    make it clear that the presumption has to be
    rebutted by ‘proof’ and not by a bare explanation
    which is merely plausible. A fact is said to be
    proved when its existence is directly established
    or when upon the material before it the court
    finds its existence to be so probable that a
    reasonable man would act on the supposition that
    it exists. Unless, therefore, the explanation is
    supported by proof, the presumption created by
    provision cannot be said to be rebutted……”

    24. Section 118 (a) and Section 139 of NI Act are mentioned in
    verbatim below :-

    Section 118 : Presumptions as to negotiable
    instruments,- Until the contrary is proved, the
    following presumptions shall be made:-

    (a) of consideration – that every negotiable
    instrument was made or drawn for consideration,
    and that every such instrument, when it has been
    accepted indorsed, negotiated or transferred, was
    accepted, was indorsed, negotiated or transferred
    for consideration;”

    Section 139 : Presumption in favour of holder –
    It shall be presumed, unless the contrary is

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 22 of 39
    proved, that the holder of a cheque received the
    cheque of the nature referred to in Section 138 for
    the discharge, in whole or in part, of any debt or
    other liability.”

    25.It is a well settled legal position that the presumptions U/s. 118 and
    139 NI Act are rebuttable presumptions and the burden lies on the
    accused to prove that he had no liability/debt on the date of issue
    of the cheque. It is also a settled principle of law that to bring
    home an offence under any of the penal provisions, it is essential to
    prove the case beyond reasonable doubt and the ingredients of the
    offence should be satisfied. Hon’ble Apex court had the occasion to
    appreciate the aforesaid provisions in certain case laws which are
    relevant for the purpose of adjudication of this appeal. The
    relevant observations of the said case laws are mentioned in my
    subsequent paragraphs.

    26. In case titled as M.S. Narayana Menon Vs. State of Kerala, 6 SCC
    39, it was held that;

    “While dealing with that aspect in a case under
    Section 138 of the Negotiable Instruments Act,
    1881, this court held that presumptions under
    sections 118 (a) and 139 of the Act are
    rebuttable and the standard of proof required for
    such rebuttal is preponderance of probabilities
    and not proof beyond reasonable doubt. The
    Court observed:

    In terms of section 4 of the Evidence Act

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 23 of 39
    whenever it is provided by the Act that the court
    shall presume a fact, it shall regard such fact as
    proved unless and until it is disproved. The
    words “proved” and “disproved” have been
    defined in section 3 of the Evidence Act (the
    interpretation clause).

    Applying the said definitions of “proved or
    “disproved” to the principle behind section 118

    (a) of the Act, the court shall presume a
    negotiable instrument to be for consideration
    unless and until after considering the matter
    before it, it either believes that the consideration
    does not exist or considers the non-existence of
    the consideration so probable that a prudent man
    ought, under the circumstances of the particular
    case, to act upon the supposition that the
    consideration does not exist. For rebutting such
    presumption, what is needed is to raise a
    probable defence. Even for the said purpose, the
    evidence adduced on behalf of the complainant
    could be relied upon.

    The standard of proof evidently is
    preponderance of probabilities. Inference of
    preponderance of probabilities can be drawn not
    only from the materials on record but also by
    reference to the circumstances upon which the
    relies.

    Therefore, the rebuttal does not have to be

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 24 of 39
    conclusively established but such evidence must
    be adduced before the court in support of the
    defence to exist or consider its existence to be
    reasonable probable, the standard of
    reasonability being that of the “prudent man”.

    27.In Case titled as Hiten P.Dalal Vs. Bratindranath Banerjee (2011) 6
    SCC 16 it was held as under:-

    “Presumptions are rules of evidence and do not
    conflict with the presumption of innocence,
    because by the latter all that is meant is that the
    prosecution is obliged to prove the case against the
    accused beyond reasonable doubt. The obligation
    on the prosecution may be discharged with the help
    of presumptions of law or fact unless the accused
    adduces evidence showing the reasonable
    possibility of the non-existence of the presumed
    fact.

    In other words, provided the facts required to form
    the basis of a presumption of law exists, no
    discretion is left with the court but to draw the
    statutory conclusion, but this does not preclude the
    person against whom the presumption is drawn
    from rebutting it and proving the contrary.”

    28.Hon’ble Apex court in case titled as Krishna Janardhan Bhatt Vs.
    Dattatraya G.Hegde
    (2008) 4 SCC 54 observed;

    “Furthermore, whereas prosecution must prove

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 25 of 39
    the guilt of an accused beyond all reasonable
    doubt, the standard of proof so as to prove a
    defence on the part of an accused is
    ‘preponderance of probabilities’. Inference of
    preponderance of probabilities can be drawn not
    only from the materials brought on record by the
    parties but also by reference to the circumstances
    upon which he relies.”

    “Statute mandates raising of presumption but it
    stops at that. It does not say how presumption
    drawn should be held to have rebutted. Other
    important principles of legal jurisprudence,
    namely, presumption of innocence as human
    rights and the doctrine of reverse burden
    introduced by Section 139 should be delicately
    balanced. Such balancing acts, indisputably would
    largely depend upon the factual matrix of each
    case, the materials brought on record and having
    regard to legal principles governing the same.”

    29. Further, in Bharat Barrel and Drum Manufacturing Company
    Vs. Amin Chand Pyarelal
    (1999) 3 SCC 35 it was observed as
    under:-

    “Upon consideration of various judgments as
    noted hereinabove, the position of law which
    emerges is that once execution of the promissory
    note is admitted, the presumption under Section

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 26 of 39
    118(a) would arise that it is supported by a
    consideration. Such a presumption is rebuttable.
    The defendant can prove the non-existence of a
    consideration by raising a probable defence. If the
    defendant is proved to have discharged the initial
    onus of proof showing that the existence of
    consideration was improbable or doubtful or the
    same was illegal, the onus would shift to the
    plaintiff who will be obliged to prove it as a
    matter of fact and upon its failure to prove would
    disentitle him to the grant of relief on the basis of
    the negotiable instrument. The burden upon the
    defendant of proving the non-existence of
    consideration can be either direct or by bringing
    on record the preponderance of probabilities by
    reference to the circumstances upon which he
    relies. In such an event, the plaintiff is entitled
    under law to rely upon all the evidence led in the
    case including that of the plaintiff as well. In
    case, where the defendant fails to discharge the
    initial onus of proof by showing the non-
    existence of the consideration, the plaintiff would
    invariably be held entitled to the benefit of
    presumption arising under Section 118(a) in his
    favour. The court may not insist upon the
    defendant to disprove the existence of
    consideration by leading direct evidence as the
    existence of negative evidence is neither possible

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 27 of 39
    nor contemplated and even if led, is to be seen
    with a doubt. The bare denial of the passing of
    the consideration apparently does not appear to
    be any defence. Something which is probable has
    to be brought on record for getting the benefit of
    shifting the onus of proving to the plaintiff. To
    disprove the presumption, the defendant has to
    bring on record such facts and circumstances
    upon consideration of which the court may either
    believe that the consideration did not exist or its
    non-existence was so probable that a prudent man
    would, under the circumstances of the case, shall
    act upon the plea that it did not exist.”

    Section 139 of the Act is an example of reverse
    onus clause that has been included in furtherance
    of the legislative objective of improving the
    credibility of negotiable instruments. While
    Section 138 of the Act specifies a strong criminal
    remedy in relation to the dishonour of cheques,
    the rebuttable presumption under Section 139 is a
    device to prevent undue delay in the course of
    litigation. However, it must be remembered that
    the offence made punishable by Section 138 can
    be better described as a regulatory offence since
    the bouncing of a cheque is largely in the nature
    of a civil wrong whose impact is usually confined
    to the private parties involved in commercial
    transactions.”

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 28 of 39
    “In the absence of compelling justification,
    reverse onus clauses usually impose an
    evidentiary burden and not a persuasive burden.
    Keeping this in view, it is settled position that
    when an accused has to rebut the “preponderance
    of probabilities”. Therefore, if the accused is able
    to raise a probable defence which creates doubts
    about the existence of a legally enforceable debt
    or liability, the prosecution can fail. As clarified
    in citations, the accused can rely on the materials
    submitted by the complainant in order to raise
    such a defence and it is conceivable that in some
    cases the accused may not need to adduce
    evidence of his/her own.”

    30.In Case titled as M/s. Kumar Exports Vs. M/s. Sharma Carpets Crl.
    Appeal No. 2045 of 2008 passed by Hon’ble Supreme Court of
    India, it was held as under:

    “When a presumption is rebuttable, it only points
    out that the party on whom lies the duty of going
    forward with evidence, on the fact presumed and
    when that party has produced evidence fairly and
    reasonably tending to show that the real fact is
    not as presumed, the purpose of the presumption
    is over. The accused in a trial under Section 138
    of the Act has two options. He can either show
    that consideration and debt did not exist or that
    under the particular circumstances of the case the

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 29 of 39
    non-existence of consideration and debt is so
    probable that a prudent man ought to suppose that
    no consideration and debt existed. To rebut the
    statutory presumptions an accused is not expected
    to prove his defence beyond reasonable doubt as
    is expected of the complainant in a criminal trial.
    The accused may adduce direct evidence to prove
    that the note in question was not supported by
    consideration and that there was no debt or
    liability to be discharged by him. However, the
    court need not insist in every case that the
    accused should disprove the non-existence of
    consideration and debt by leading direct evidence
    because the existence of negative evidence is
    neither possible nor contemplated. At the same
    time, it is clear that bare denial of the passing of
    the consideration and existence of debt,
    apparently would not server the purpose of the
    accused. Something which is probable has to be
    brought on record for getting the burden of proof
    shifted to the complainant. To disprove the
    presumptions the accused should bring on record
    such facts and circumstances, upon consideration
    of which, the court may either believe that the
    consideration and debt did not exist or their non-
    existence was so probable that a prudent man
    would under the circumstances of the case, act
    upon the plea that they did not exist. Apart from

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 30 of 39
    adducing direct evidence to prove that the note in
    question was not supported by consideration or
    that he had not incurred any debt or liability, the
    accused may also rely upon circumstantial
    evidence and if the circumstances so relied upon
    are compelling, the burden may likewise shift
    again on to the complainant. The accused may
    also rely upon presumptions of fact, for instance,
    those mentioned in Section 114 of the Evidence
    Act to rebut the presumptions arising under
    Sections 118 and 139 of the Act. The accused has
    also an option to prove the non-existence of
    consideration and debt or liability either by
    letting in evidence or in some clear and
    exceptional cases, from the case set out by the
    complainant, that is, the averments in the
    complaint, the case set out in the statutory notice
    and evidence adduced by the complainant during
    the trial. Once such rebuttal evidence is adduced
    and accepted by the court, having regard to all the
    circumstances of the case and the preponderance
    of probabilities, the evidential burden shifts back
    to the complainant and, thereafter, the
    presumptions under Sections 118 and 139 of the
    Act will not again come to the complainant’s
    rescue.”

    31.In Case titled as John K. John v. Tom Varghese 2007 (4) Civil

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 31 of 39
    Court Cases 690 (S.C), it was held as under:-

    “…..Presumption raised in terms of Section 139 of
    the Act is rebuttable. If, upon analysis of the
    evidence brought on records by the parties, in a
    fact situation obtaining in the instant case, a
    finding of fact has been arrived at by the High
    Court that the cheques had not been issued by the
    respondent in discharge of any debt, in our
    opinion, the view of the High Court cannot be
    said to be perverse warranting interference by us
    in exercise of our discretionary jurisdiction under
    Article 136 of the Constitution of India. The High
    Court was entitled to take notice of the conduct of
    the parties. It has been found by the High Court s
    of fact that the complainant did not approach the
    court with clean hands. His conduct was not that
    of a prudent man. Why no instrument was
    executed although a huge sum of money was
    allegedly paid to the respondent was a relevant
    question which could be posed in the matter. It
    was open to the High Court to draw its own
    conclusion therein. Not only no document had
    been executed, even no interest had been
    charged…..”

    32.Above case laws therefore, indicate that presumptions u/s 118 &
    139 N.I.Act are rebuttable in nature. Accused needs not to rebut
    those presumptions, through defence evidence only. He can do so

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 32 of 39
    by cross examining complainant witnesses. It is for complainant, to
    prove his case beyond reasonable doubt. Now, whether
    complainant proves his case beyond reasonable doubt and whether
    aforesaid presumptions are rebutted by accused vary from case to
    case. This is the understanding of law, which I have based on
    above case laws and based on which I am proceeding further, in
    this judgment.

    COURT OBSERVATIONS

    33.Reverting back to the facts of the present case, I find that case of
    complainant/appellant is that he had extended friendly loan to the
    accused/respondent who was his friend and known to him for 10-
    15 years. It has been averred that the aforesaid loan was for an
    amount of Rs.7,00,000/-, which was given by the complainant by
    way of cash. Further, in discharge of legal liability the
    accused/respondent repaid Rs.3,40,000/- by way of RTGS and
    Rs.20,000/- by way of cash in the month of September, 2021 and
    for the same purpose accused allegedly issued two cheques. Since,
    the accused had paid the amount of Rs.3,40,000/- by way of
    RTGS, the complainant had returned one of the cheque but the
    other cheque (cheque in question bearing no.052105 drawn on
    Central Bank of India Baitalpur Branch Deoria 274201) was
    dishonoured upon presentation with remarks payment stopped by
    drawer.

    34.Upon dishonour of cheque the complainant/appellant issued a legal
    notice dated 06.12.2021 and the same was received by the
    respondent/accused and he filed his reply on 20.12.2021

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 33 of 39
    Ex.CW1/7. However, the complainant filed the present complaint
    before the Ld. Trial Court. The complainant relied upon his
    evidence by way of affidavit, and other documents Ex.CW1/1 to
    Ex.CW1/8 in support of his claims.

    35.Ld. Counsel for complainant has primarily taken the grounds of
    appeal, stating that the Ld. Trial Court did not take into
    consideration that the cheque was issued by the accused/
    respondent and had admitted his signature on the same and
    therefore, the complainant has discharged the burden of proof
    regarding the liability upon the accused and since it was upon the
    accused to rebut the same, which he has failed in the present matter
    and therefore, he was liable to be convicted.

    36.On the other hand on behalf of respondent, the respondent had
    refuted the claims made by the complainant and has categorically
    stated that he had returned the amount, taken from the
    complainant/appellant and the cheque in question was with the
    complainant and he refused to return back and misused the same.

    37.The complainant/appellant during cross examination had stated
    that he was working as a free lancer in a real estate and accused
    had approached him for seeking loan in January-February, 2019.
    No written document was executed at the time of advancement of
    loan. He had not reflected the loan amount in his ITR for the
    relevant assessment year. Further, he had not obtained any cheque
    from the accused when he advanced him loan. He admitted that he
    had received Rs.20,000/- as cash on 26.09.2021 and two cheques

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 34 of 39
    on the same day for an amount of Rs.3,40,000/- each . He admitted
    his signature on document Mark-A which was a photocopy of a
    cheque in question. he did not remember the cheque number of the
    other cheque which was handed over to him by the accused and
    was returned by him. Further he admitted that no document was
    executed qua return of the other cheque. He further admitted that
    some amount had been paid by the accused even prior to COVID
    but same was pertaining to some other transaction. Further,
    complainant admitted document Mark B which was pertaining to
    details of payment made by accused to him. Complainant also
    admitted document Ex.CW1/8 which was the original hand written
    letter of the accused and submitted that the same was written in his
    presence by the accused. He further admitted that in the aforesaid
    document there was no mention regarding advancement of loan of
    Rs.7 Lakh to the accused. Further that the document Ex. CW1/8
    was not signed by the complainant. He denied that accused was
    forced to sign upon the document Ex. CW1/8.

    38.In the present matter, the complainant during his cross examination
    admitted regarding repayments made by the complainant at
    different point of time which are reflected in document Mark B on
    different dates. For the aforesaid the explanation given by accused
    was that, they pertained to some other transactions. Further, the
    complainant admitted that he had not signed on document Ex.
    CW1/8 which was allegedly the document written by accused. The
    aforesaid alleged document Ex.CW1/8 no where mentions
    regarding loan amount of Rs.7 Lakhs. Further, the document does
    not bear the signature of complainant Manav Kapoor. The

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 35 of 39
    complainant did not examine any of the witnesses of the aforesaid
    document namely Manoj Kumar and Satish to prove the same.
    However, one of the witnesses namely Satish has been examined
    by the accused during his defence evidence. DW2 Satish deposed
    in favour of complainant and had categorically stated the manner
    in which the complainant had repaid the amount to accused.
    Further the defence taken by accused regarding being threatened
    by the complainant, and forcing him to issue the cheque is
    supported by the witness DW2 Satish.

    39.The complainant failed to mention regarding the date, time or
    place when such loan was extended to the accused and also did not
    mention the name of any person in whose presence such friendly
    loan was extended. Though the complainant in the present matter
    has claimed that he had extended loans by giving cash from his
    account, the same does not find mention in his complaint. Further,
    the complainant did not place on record any document to show if
    any cash was withdrawn by him from his account, before
    extending loan of Rs.7 Lakhs to the accused in the year 2019, in
    the month of January-February.

    40.Complainant had admitted that no document was executed between
    him and the accused, when he extended loan of Rs.7 Lakhs. It is
    difficult to believe the complainant had extended loan to the
    accused without entering into any written agreement and it would
    have been prudent for him to extend the loan by way of a bank
    transfer, rather than withdrawing cash and then handing over the
    same to the accused/respondent. The aforesaid facts have already

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 36 of 39
    been appreciated by the Ld. Trial Court in the impugned judgment
    and the same are not repeated for the sake of brevity.

    41.The presumption against the accused/respondent, was substantially
    shaken by the respondent against the case of the complainant. For
    proving the said fact, accused examined himself as a witnesses in
    his defence and also examined Satish as DW2.

    42.Since, complainant had moved the court, so as per sec. 101 Indian
    Evidence Act, burden rested upon him for proving his case beyond
    reasonable doubt. In his cross-examination, complainant was asked
    questions with regard to his income and occupation, with regard to
    his businesses and regarding him filing Income Tax Return (In
    short ‘ITR’). He was also asked questions regarding different
    transactions for which complainant stated that there were monetary
    transactions between the accused prior to filing of the present
    complaint, however, the same were not substantiated by the
    complainant by leading any cogent evidence. He was also
    questioned with regard to the mode of payment of loan amount to
    accused, for which he stated that he had paid in cash, however, no
    document with respect to the same was ever executed by the
    complainant. All those aspects were relevant, for the reason that
    accused had taken the same as his defence in his statement
    recorded u/s 251 Cr.P.C. at the time of framing of notice and even
    subsequently, during the cross examination of CW1 and in his
    statement u/sec. 313 CrPC.

    43.The complainant did not examine any witness in support of his

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 37 of 39
    claim that all the amounts during the period were handed over to
    the accused.

    44.Presumptions u/sec. 118 and 139 NI Act, therefore, were not raised
    against accused. Accused while cross-examining complainant gave
    specific suggestion, to the effect that he had not issued the cheque
    in question towards any legal liability but was issued as a security
    cheque. While cross-examining complainant, accused did
    specifically asked and confront the complainant with regard to the
    manner in which cheque amount in question was handed over to
    him. Infact, complainant failed to explain in his cross-examination
    the questions put to him regarding being known to the accused and
    the mode and manner of handing over the alleged cash amount
    during the alleged period to the accused/respondent. So, accused/
    respondent succeeded to cull out any relevant fact pertaining to
    absence of his liability to pay cheque amount in question or with
    regard to repayment of loan amount in question to complainant.

    45.Testimony of complainant, as such failed the test of cross-
    examination. I did not believe the testimony of complainant/
    appellant to be trustworthy and reliable.

    46.The net result is that complainant was unable to prove his case
    beyond reasonable doubt on the basis of his evidence. Accused
    succeeded to raise probable defence and rebut presumptions u/s
    118
    read with Section 139 N.I. Act. Ld. Trial Court rightly
    acquitted the accused/respondent vide impugned judgment. As
    such, impugned judgment needs no interference. Present appeal
    with respect to the judgment of acquittal stands dismissed.

    CA No.379/2025 Manav Kapoor vs. Veer Bahadur Page No. 38 of 39

    47.Impugned judgment passed by Ld. Trial Court is hereby upheld.

    48.Copy of the present order be sent to Ld. Trial Court for
    information.

    Digitally signed
    by Sheetal

                                            Sheetal       chaudhary
                                            chaudhary     Date:
                                                          2026.07.10
                                                          14:04:56 +0530
    
    Announced in open Court           [Sheetal Chaudhary Pradhan]
                                        ASJ-02/South East District
                                    Saket Courts/New Delhi/10.07.2026 (vk)
    
    
    
    
    CA No.379/2025        Manav Kapoor vs. Veer Bahadur     Page No. 39 of 39
     



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