Dishonour of Cheque -- Acquittal Under S.138 NI Act -- Does not bind civil court in recovery suit
(i) Negotiable Instruments Act, 1881, S.138 -- Dishonour of Cheque -- Acquittal Under S.138 NI Act -- Findings recorded by a criminal court do not bind a civil court, even where the same documents and witnesses are examined in both proceedings. Criminal and civil proceedings remain independent, since prosecution requires proof beyond reasonable doubt while a civil suit is decided on preponderance of probabilities. An acquittal does not operate as res judicata or issue estoppel in the civil proceeding and does not by itself establish absence of debt or liability. (ii) Negotiable Instruments Act, 1881, S.138 -- Recovery Suit -- Proof of Signature on Cheque -- Proof that a cheque bears the signature of the executant does not by itself establish execution of the cheque. The plaintiff must additionally establish voluntary execution and delivery of the cheque, and inconsistencies in evidence on this aspect are fatal to a recovery suit based on the cheque.
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