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Necessary Transfer Vehicle Purchase Sale


The following Hon'ble Supreme Court judgment makes it clear whether it is necessary to transfer the vehicle after its sale to prove it is actually sold.



2024 I        NSC         289               Reportable


IN THE SUPREME COURT OF INDIA

CIVIL APPELLATE JURISDICTION

CIVIL APPEAL NO. 4615 OF 2023

 

Karikho Kri … Appellant

Versus

Nuney Tayang and another … Respondents

With

 

CIVIL APPEAL NO. 4716 OF 2023

J U D G M E N T

SANJAY KUMAR, J

 

1. In the year 2019, Karikho Kri, an independent candidate,

Dr. Mohesh Chai, candidate of the Bharatiya Janata Party, and Nuney

Tayang, candidate of the Indian National Congress, contested the election

to the Arunachal Pradesh Legislative Assembly from 44 Tezu (ST)

Assembly Constituency. The election was held on 11.04.2019 and Karikho

Kri emerged victorious with 7538 votes, while Dr. Mohesh Chai secured

7383 votes and Nuney Tayang secured 1088 votes.

 

2. Nuney Tayang filed Election Petition No. 01(AP) of 2019 before the

Itanagar Bench of the High Court of Assam, Nagaland, Mizoram and

Arunachal Pradesh, seeking a declaration that the election of Karikho Kri

was void on the grounds mentioned in Sections 100(1)(b), 100(1)(d)(i) and

100(1)(d)(iv) of the Representation of the People Act, 1951 (for brevity, ‘the

Act of 1951’). He also sought a consequential declaration that he stood

duly elected from the said constituency.

 

3. By judgment and order dated 17.07.2023, a learned Judge of the

Itanagar Bench of the High Court allowed the election petition in part,

declaring the election of Karikho Kri void under Sections 100(1)(b), 100(1)

(d)(i) and 100(1)(d)(iv) of the Act of 1951, but rejecting the prayer of Nuney

Tayang to declare him duly elected, as he had not led any evidence to

prove the allegations levelled by him against Dr. Mohesh Chai, the

candidate with the second highest number of votes.

 

4. Aggrieved thereby, Karikho Kri filed Civil Appeal No. 4615 of 2023

before this Court and Nuney Tayang filed Civil Appeal No. 4716 of 2023.

These appeals were filed under Section 116A of the Act of 1951.

5. While ordering notice in both the appeals on 31.07.2023, in

exercise of power under Section 116B(2) of the Act of 1951, this Court

directed that an election should not be held for the subject Constituency

which was represented by Karikho Kri and permitted him to enjoy all the

privileges as a Member of the House and of the constituted committees but

restrained him from casting his vote on the floor of the House or in any of

the committees wherein he participated as an MLA.

 

6. Thereafter, during the course of the hearing of these appeals,

Karikho Kri filed I.A. No. 73161 of 2024, as a fresh schedule for election to

the Legislative Assembly of the State of Arunachal Pradesh was notified on

16.03.2024 and he wished to contest in the election that is proposed to be

held on 19.04.2024. He sought leave to contest as a candidate in the

upcoming assembly election in the State of Arunachal Pradesh during the

pendency of this appeal. By order dated 20.03.2024, this Court opined that

a strong prima facie case had been made out by him and, in the light of the

said fact, stayed the operation of the impugned judgment. This Court also

made it clear that any steps taken by Karikho Kri in view of the stay order

would be subject to the final decision that would be taken upon conclusion

of the hearing of these appeals.

 

7. In his election petition, Nuney Tayang claimed that the nomination

submitted by Karikho Kri was improperly accepted by the Returning Officer,

Tezu, as he did not disclose material particulars in his Affidavit filed in Form

No.26 appended to the Conduct of Elections Rules, 1961. The High Court

framed nine issues for determination in the election petition and ultimately

held against Karikho Kri on Issue Nos. 1 (in part), 4, 5, 6 (in part), 7 and 8.

Issue No.9 pertained to the relief claimed by Nuney Tayang. The relevant

‘Issues’ read as under:

‘1. Whether there has been a non-disclosure of ownership of

Hero Honda CD Dawn Motorcycle owned by the returned

candidate, Shri Karikho Kri bearing registration No. AR-11-2446;

Kinetic Zing Scooty owned by the wife of the returned candidate,

Smti. Bagilu Kri bearing registration No. AR-11-4474; Van, Maruti

Omni Ambulance owned by the wife of the returned candidate,

Smti. Bagilu Kri bearing registration No. AR-11A-3100 and TVS

Star City Motorcycle owned by Shri Goshinso Kri, the son of the

returned candidate Shri Karikho Kri bearing registration No. AR-

11-6581, as is required to be disclosed under Clause 7(vi) of the

Conduct of Election Rules, 1961, rendering the nomination of the

returned candidate invalid?

 

4. Whether there has been a non-submission of no dues

certificate with regard to Electricity Charges required to be

submitted under Clause 8(ii)(b) of Form No. 26 of the Conduct of

Election Rules, 1961, as the respondent No. 1 was in occupation

of MLA Cottage No. 1 at ‘E’ Sector, Itanagar, from the year, 2009-

2014, while the respondent No. 1 was an MLA of Tezu (ST)

Assembly Constituency during the year, 2009-2014?

 

5. Whether the statements made by the respondent No. 1

about the liability of himself and his wife in respect of Municipal

Tax, Property Tax, due and grand total of all govt. dues against

Serial No. 6 & 8 of the table in Para-8(A) of the affidavit in Form

No. 26 appended to the nomination paper of the respondent No. 1

has rendered the nomination of respondent No. 1, defective?

4

6. Whether the non-disclosure of assets both movable and

immovable belonging to the respondent No. 1, his wife, his mother

and his two sons in the affidavit in Form No. 26 appended to the

nomination paper amounted to commission of corrupt practice of

undue influence within the meaning of Section 123(2) of the

Representation of the People Act, 1951?

 

7. Whether the election of respondent No. 1 to the 44-

Tezu(ST) Assembly Constituency is liable to be declared void

under Section 100(1)(d)(i) of the Representation of the People Act,

1951?

 

8. Whether the nature of non-disclosure alleged by the

Election petitioner is of a substantial nature effecting the election

of the returned candidate/respondent No. 1?

 

9. What consequential relief the petitioner is entitled to, if

any?’

8. Nuney Tayang examined 7 witnesses, including himself as PW7.

Karikho Kri examined 39 witnesses, including himself as DW1A.

Dr. Mohesh Chai did not choose to contest the case before the High Court,

despite service of notice. Before us, however, he is duly represented by

learned counsel and also filed his replies in both the appeals.

9. The High Court held against Karikho Kri on Issue No 1, in relation

to three out of the four vehicles, viz., the Kinetic Zing Scooty bearing No.

AR-11/4474 and the Maruti Omni Van bearing No. AR-11A/3100, both

registered in the name of Bagilu Kri, his wife, and the TVS Star City

Motorcycle bearing No. AR-11/6851, registered in the name of Goshinso

Kri, his second son. The High Court was of the opinion that,

notwithstanding the sale of the Kinetic Zing Scooty bearing No. AR-11/4474

in 2009 and the Maruti Omni Van bearing No. AR-11A/3100 in the year

2017 and the gifting of the TVS Star City Motorcycle bearing No. AR-

11/6851 in 2014, these vehicles continued to stand in the names of Bagilu

Kri and Goshinso Kri, the dependent wife and son of Karikho Kri, on the

relevant date. Upon considering the provisions of the Motor Vehicles Act,

1988 (for brevity, ‘the Act of 1988’) and the decision of this Court in Naveen

Kumar vs. Vijay Kumar and others1, the High Court concluded that the

person in whose name the motor vehicle stood registered should be treated

as the owner thereof. In consequence, it was held that, as on the date of

presentation of his nomination on 22.03.2019 and its scrutiny on

26.03.2019, the above three vehicles were owned by the dependent wife

and son of Karikho Kri but they were not disclosed in the Affidavit in Form

No. 26 filed by him.

 

10. On Issue No. 4 with regard to non-submission of a ‘No Dues

Certificate’ in the context of electricity and water charges, etc., that was

required to be submitted under Clause 8(ii)(B) of Form No. 26, the High

Court noted that Karikho Kri had occupied government accommodation in

MLA Cottage No.1 at ‘E’ Sector, Itanagar, from 2009 to 2014, as the MLA of

1 (2018) 3 SCC 1

6

Tezu (ST) Assembly Constituency during those years. According to Karikho

Kri, he lost the election in 2014 and vacated the said accommodation. He

claimed that when he filed his nomination for the Assembly Election in

2014, he obtained a ‘No Dues Certificate’ after clearing the dues and

submitted it. As there were no outstanding dues thereafter and he did not

occupy government accommodation, he stated that he did not disclose the

same. As Karikho Kri admitted such non-disclosure in his Affidavit in Form

No. 26, the High Court held against him on this count.

 

11. As regards Issue No. 5, pertaining to the liability of Karikho Kri and

his wife in respect of their dues of municipal and property taxes, the High

Court found that Karikho Kri had disclosed the taxes due and payable by

him and his wife in one part of the Affidavit in Form No.26 submitted by

him, but failed to do so in another part thereof. He disclosed the dues in

Part A, Clause 8 (vi) and (viii), but failed to disclose it in Clause 9 in Part B.

Though the High Court held against Karikho Kri even on this count, Mr.

Arunabh Chowdhury, learned senior counsel, appearing for Nuney Tayang,

fairly stated that he would not be pressing this ground as there was

disclosure of the dues at least in one part of the Affidavit in Form No. 26.

12. As regards Issue No. 6, i.e., whether non-disclosure of the three

vehicles, registered in the names of his dependent wife and second son, by

Karikho Kri in his Affidavit in Form No. 26 amounted to commission of a

corrupt practice as per Section 123(2) of the Act of 1951, the High Court

referred to case law and held that such non-disclosure amounted to a

corrupt practice within the meaning of Section 123(2) of the Act of 1951.

13. The High Court then considered Issue No. 7, i.e., whether the

election of Karikho Kri was liable to be declared void under Section 100(1)

(d)(i) of the Act of 1951 and opined that when the nomination of the

returned candidate was shown to have been improperly accepted by the

Returning Officer, there is no necessity to further prove that the election

was ‘materially affected’. As the High Court was of the opinion that the

nomination of Karikho Kri had, in fact, been improperly accepted by the

Returning Officer, Tezu, his election was held liable to be declared void

under Section 100(1)(d)(i) of the Act of 1951.

 

14. On Issue No. 8 - as to whether the non-disclosures by Karikho Kri

were of a substantial nature affecting his election, the High Court observed

that disclosure of information as per Form No. 26 of the Conduct of Election

Rules, 1961, was fundamental to the concept of free and fair elections and,

therefore, the solemnity thereof could not be ridiculed by offering

incomplete information or suppressing material information, resulting in

disinformation and misinformation to the voters.

 

15. Coming to Issue No. 9, i.e., as to what consequential relief Nuney

Tayang would be entitled to, if any, the High Court noted that Nuney Tayang

had secured the least number of votes out of the three candidates and

though he made allegations to the effect that Dr. Mohesh Chai had failed to

disclose the properties belonging to his mother in his Affidavit in Form

No. 26, the High Court found that Nuney Tayang had failed to lead any

evidence in proof of this statement and, as such, there was no material to

hold that Dr. Mohesh Chai’s mother was even his dependent. On that

basis, the High Court held that no judgment could be pronounced against

Dr. Mohesh Chai, solely on the basis of the pleadings and allegations made

by Nuney Tayang in his election petition. In consequence, Nuney Tayang

was held disentitled to relief by way of a declaration that he had been duly

elected from 44 Tezu (ST) Assembly Constituency.

 

16. It is well-settled that the success of a winning candidate at an

election should not be lightly interfered with (See Santosh Yadav vs.

Narender Singh2 and Harsh Kumar vs. Bhagwan Sahai Rawat and

others3). The issue before us presently is as to the validity of the High

Court’s findings that the grounds under Sections 100(1)(b), 100(1)(d)(i) and

100(1)(d)(iv) of the Act of 1951 were established, warranting invalidation of

the election of Karikho Kri. Further, the finding of the High Court on Issue

No. 6, that Karikho Kri committed a ‘corrupt practice’ within the meaning of

Section 123(2) of the Act of 1951 also requires to be examined.

 

17. Section 33 of the Act of 1951 deals with ‘presentation of

nomination papers and the requirements for a valid nomination’. Scrutiny of

such nominations is undertaken by the Returning Officers under Section 36

of the Act of 1951. To the extent relevant, Section 36 reads as under:

‘36. Scrutiny of nomination:-

1. On the date fixed for the scrutiny of nominations under

section 30, the candidates, their election agents, one proposer of

each candidate, and one other person duly authorised in writing by

each candidate but no other person, may attend at such time and

place as the returning officer may appoint; and the returning officer

shall give them all reasonable facilities for examining the nomination

papers of all candidates which have been delivered within the time

and in the manner laid down in section 33.

2. The returning officer shall then examine the nomination

papers and shall decide all objections which may be made to any

nomination and may, either on such objection or on his own motion,

after such summary inquiry, if any, as he thinks necessary, reject any

nomination on any of the following grounds:—

(a) ….. or

(b) ….. or

(c) …..

3. …..

4. The returning officer shall not reject any nomination paper

on the ground of any defect which is not of a substantial character.

5. …..

6. The returning officer shall endorse on each nomination

paper his decision accepting or rejecting the same and, if the

nomination paper is rejected, shall record in writing a brief statement

of his reasons for such rejection.

7. …..

8. Immediately after all the nomination papers have been

scrutinized and decisions accepting or rejecting the same have been

recorded, the returning officer shall prepare a list of validly nominated

candidates, that is to say, candidates whose nominations have been

found valid, and affix it to his notice board.

 

18. In terms of Section 36(4) above, a Returning Officer is under a

mandate not to reject a nomination paper for a defect unless it is of

substantial character. Significantly, Nuney Tayang raised objections to the

candidature of Karikho Kri by way of his written representation dated

26.03.2019. Therein, he raised the issue of non-submission of a ‘No Dues

Certificate’ in respect of the government accommodation occupied by

Karikho Kri during his tenure as an MLA from 2009 to 2014. He also raised

the issue of non-disclosure of the vehicles, mentioned in Issue No. 1. By

his reply dated 26.03.2019, Karikho Kri informed the Returning Officer,

Tezu, that the vehicles, viz., the Kinetic Zing Scooty and the Maruti Omni

Van standing in the name of his wife had already been disposed of as was

the TVS Star City Motorcycle standing in the name of his dependent

second son, which had been gifted away. As regards the non-submission of

a ‘No Dues Certificate’, Karikho Kri asserted that there were no outstanding

dues against any government accommodation in his name. Karikho Kri

submitted documents with his explanation, including those pertaining to the

transfer of the vehicles in question as well as the ‘No Dues Certificates’ of

2014. Thereafter, Karikho Kri filed before the High Court, Certificates

issued in 2019 by the Bharat Sanchar Nigam Limited; the Department of

Power, Government of Arunachal Pradesh; and the Legislative Assembly

Secretariat, Arunachal Pradesh, confirming that there were no outstanding

dues. In effect and in fact, there were no dues payable by Karikho Kri in

relation to the Government accommodation occupied by him earlier.

19. In any event, it appears that the Returning Officer concerned,

being satisfied with the explanation and documents submitted by Karikho

Kri, accepted his nomination. No doubt, this preliminary exercise on the

part of the Returning Officer did not preclude the Election Tribunal, viz., the

High Court, from examining as to whether the acceptance of Karikho Kri’s

nomination was improper and, in consequence, whether it would have an

impact on his election under the relevant provisions of the Act of 1951.

Section 100(1) thereof enumerates the grounds on which an election can

be invalidated. To the extent relevant, it reads as under:

‘100. Grounds for declaring election to be void:-

(1) Subject to the provisions of sub-section (2) if the High Court

is of opinion—

(a) …..; or

(b) that any corrupt practice has been committed by a returned

candidate or his election agent or by any other person with the

consent of a returned candidate or his election agent; or

(c) …..; or

(d) that the result of the election, in so far as it concerns a

returned candidate, has been materially affected—

(i) by the improper acceptance of any nomination, or

(ii) by any corrupt practice committed in the interests of the

returned candidate by an agent other than his election agent, or

(iii) by the improper reception, refusal or rejection of any vote or

the reception of any vote which is void, or

(iv) by any non-compliance with the provisions of the

Constitution or of this Act or of any rules or orders made under

this Act, the High Court shall declare the election of the returned

candidate to be void.’

 

20. The High Court held against Karikho Kri not only under Sections

100(1)(d)(i) and (iv) but also under Section 100(1)(b) of the Act of 1951, as

it was of the opinion that his failure to disclose the three vehicles, that still

stood registered in the names of his dependent family members, amounted

to a corrupt practice. Insofar as Section 100(1)(b) of the Act of 1951 is

concerned, the requirement thereof for the purpose of invalidating the

election of the returned candidate is that the High Court must form an

opinion that a ‘corrupt practice’ was committed by the returned candidate or

his election agent or any other person with the consent of the returned

candidate or his election agent. Section 123 of the Act of 1951 inclusively

defines ‘corrupt practices’, by stating that what have been enumerated

thereunder shall be deemed to be corrupt practices for the purposes of the

Act of 1951. Insofar as the present case is concerned, Section 123(2) of

the Act of 1951 is of relevance. This provision reads as under:

‘123. Corrupt practices.—

The following shall be deemed to be corrupt practices for the

purposes of this Act:—

……

(2) Undue influence, that is to say, any direct or indirect

interference or attempt to interfere on the part of the candidate or his

agent, or of any other person with the consent of the candidate or his

election agent, with the free exercise of any electoral right:

……’

21. The High Court opined that non-disclosure of the Kinetic Zing

Scooty and the Maruti Omni Van that had belonged to Bagilu Kri and the

TVS Star City Motorcycle that had belonged to Goshinso Kri, the

dependent wife and son of Krikho Kri, was sufficient in itself to constitute

‘undue influence’, thereby attracting Section 123(2) of the Act of 1951.

However, what is of significance is that the High Court did not doubt that

these vehicles had been sold or gifted long before the submission of the

nomination by Karikho Kri in 2019. This is clear from the observations in

Para 13 (xiii) of the judgment, wherein the High Court observed: ‘….at the

time of presentation of nomination paper of respondent No. 1, and on the

date of scrutiny of the nomination paper on 26.03.2019, notwithstanding the

aforesaid vehicles were gifted/sold to other persons by Smti. Bagilu Kri,

wife of respondent No. 1 as well as Shri. Goshinso Kri, son of respondent

No. 1; it has now become imperative to decide as to who was the owner of

the aforesaid vehicles at the time presentation of the nomination paper by

the respondent No. 1, and on the date of scrutiny of the nomination paper

on 26.03.2019’. This finding of the High Court has attained finality as

Nuney Tayang did not choose to challenge the same before this Court.

 

22. Though it appears that the three vehicles in question still remained

registered in the names of the wife and son of Karikho Kri, the question that

arises is as to whether non-disclosure of such vehicles justified the

attributing of a corrupt practice to Karikho Kri and the negating of his

election on that ground. The High Court assumed that the non-disclosure of

a vehicle registered in the name of a candidate or his dependent family

members was sufficient in itself to constitute undue influence. In this

context, the High Court placed reliance on the provisions of the Act of 1988

and the decision of this Court in Naveen Kumar (supra). Section 2(30) of

the Act of 1988 defines the owner of a vehicle as under:

‘ “owner” means a person in whose name a motor vehicle stands

registered, and where such person is a minor, the guardian of such

minor, and in relation to a motor vehicle which is the subject of a

hire-purchase, agreement, or an agreement of lease or an

agreement of hypothecation, the person in possession of the vehicle

under that agreement;’

In Naveen Kumar (supra), a 3-Judge Bench of this Court was dealing

with the issue as to who would be the owner of an offending vehicle in the

context of the Act of 1988 when a claim arises from an accident involving

the said vehicle. ‘Owner’, as defined under Section 2(30) of the Act of

1988, was considered and it was opined that the person in whose name a

vehicle stands registered would be the owner of the vehicle for the

purposes of the Act. Reference was made to Section 50 of the Act of 1988,

which deals with transfer of ownership, and to various earlier decisions in

that regard and it was observed thus:

 

‘13. The consistent thread of reasoning which emerges from the

above decisions is that in view of the definition of the expression

“owner” in Section 2(30), it is the person in whose name the motor

vehicle stands registered who, for the purposes of the Act, would be

treated as the “owner”..……In a situation such as the present where

the registered owner has purported to transfer the vehicle but

continues to be reflected in the records of the Registering Authority

as the owner of the vehicle, he would not stand absolved of liability.

Parliament has consciously introduced the definition of the

expression “owner” in Section 2(30), making a departure from the

provisions of Section 2(19) in the earlier 1939 Act. The principle

underlying the provisions of Section 2(30) is that the victim of a motor

accident or, in the case of a death, the legal heirs of the deceased

victim should not be left in a state of uncertainty. A claimant for

compensation ought not to be burdened with following a trail of

successive transfers, which are not registered with the Registering

Authority. To hold otherwise would be to defeat the salutary object

and purpose of the Act. Hence, the interpretation to be placed must

facilitate the fulfilment of the object of the law. In the present case,

the first respondent was the “owner” of the vehicle involved in the

accident within the meaning of Section 2(30). The liability to pay

compensation stands fastened upon him. Admittedly, the vehicle was

uninsured.’ (emphasis is ours)

 

23. Notably, the High Court overlooked the fact that the above

judgment was rendered in the context of and for the purposes of the Act of

1988 and not for general application. The judgment itself made it clear that

despite the sale/transfer of the vehicle in question, a claimant or claimants

should not be made to run from pillar to post to find out who was the owner

of the vehicle as on the date of the accident, if the sale/transfer was not

carried out in their books by the authorities concerned by registering the

name of the subsequent owner, be it for whatever reason. Further, vehicles

being goods, their sale would be covered by the provisions of the Sale of

Goods Act, 1930 (for brevity, ‘the Act of 1930’), and the same make it clear

that conveyance of ownership of the vehicle would stand concluded upon

execution of the document of sale/transfer and registration of the new

owner by the authorities concerned would be a post-sale event. Section

2(7) of the Act of 1930 defines goods, inter alia, to mean every kind of

movable property, other than actionable claims and money. Chapter III of

the Act of 1930 is titled ‘Effects of the Contract’ and ‘Transfer of property as

between seller and buyer’. Section 18 therein states that where there is a

contract for the sale of unascertained goods, no property in the goods is

transferred to the buyer unless and until the goods are ascertained. Section

19, however, states that the property passes when intended to pass and

elaborates that, where there is a contract for the sale of specific or

ascertained goods, the property in them is transferred to the buyer at such

time as the parties to the contract intend it to be transferred.

 

24. In Commissioner of Commercial Taxes, Thiruvananthapuram,

Kerala vs. K.T.C. Automobiles4, this Court observed that registration of a

motor vehicle is a post-sale event but the question would arise as to when

the property in the motor vehicle actually passed to the buyer. That was a

case involving the first sale of a motor vehicle by the dealer to the first

owner and is, therefore, distinguishable from the subsequent sale of a

vehicle, as in the case on hand. It was observed therein that registration of

a motor vehicle is a post-sale event but only after obtaining valid

registration under the Act of 1988, a purchaser would get entitlement to use

the vehicle in a public place. It was observed that the purchaser, as an

owner under the Act of 1988, was obliged to obtain the certificate of

registration, which alone would entitle him to enjoy the possession of the

vehicle by using it in public places after meeting the other statutory

obligations of insurance, etc. This Court rejected the contention that motor

vehicles would be ‘unascertained goods’ till their engine number or chassis

number is entered in the Certificate of Registration, as the sale invoice itself

would disclose such particulars, so that the owner of the vehicle may apply

for registration of that specific vehicle in his name. However, owing to the

statutory provisions governing motor vehicles, this Court held that an

intending owner or buyer of a motor vehicle cannot ascertain the particulars

of the vehicle for appropriating it to the contract of sale till its possession is

handed over to him after observing the requirements of the Act of 1988 and

the rules framed thereunder and such possession can be given only at the

registration office immediately preceding the registration. Owing to the

aforestated legal position, this Court held that, prior to getting possession of

the motor vehicle, the intending purchaser/owner would not have a claim

over any ‘ascertained motor vehicle’. The observations in this judgment

would, however, have to be understood in the context of the first sale of a

vehicle by the dealer, i.e., where such vehicle has no registration

whatsoever as opposed to the subsequent sale of a registered vehicle.

25. Presently, insofar as the Scooty bearing No. AR-11/4474 is

concerned, it stood in the name of Bagilu Kri but Md. Nizammudin (DW5)

deposed that he had taken this vehicle as scrap and sold it as such to

Promod Prasad (DW6). In turn, Promod Prasad (DW6) confirmed that he

bought the Scooty as scrap from Md. Nizammudin (DW5). During their

cross-examination, nothing was elicited from these witnesses to doubt their

claims. However, letter dated 20.09.2019 addressed by the District

Transport Officer, Lohit District, Tezu, to Bagilu Kri, manifests that the

registration of the Scooty in her name stood cancelled only at that time.

The taxes in respect of this Scooty were paid till 26.03.2022, as borne out

by Treasury Challan No. 4806 dated 30.08.2019. Though much was argued

about this payment of taxes and the fact that the receipt was issued in the

name of Bagilu Kri, we are not inclined to give any weightage to it. The

payment was made after the filing of the election petition and any person

could have done so. The receipt therefor would automatically be generated

in the name of the registered owner. We may also note that in relation to

the other two vehicles in question, there were actual documents of

conveyance and also proof of the requisite forms prescribed under the Act

of 1988 being duly filled in and issued by Bagilu Kri and Goshinso Kri. Form

No. 29, relating to notice of ownership transfer of a vehicle by the

registered owner, viz., the transferor, was issued in respect of each of these

vehicles but despite the same, the transferees did not do the needful to get

their own names registered as the owners.

26. In Surendra Kumar Bhilawe vs. New India Assurance Co.

Ltd.5, the issue before this Court was as to whether an insurance company

would be liable to cover the claim arising out of an accident on the ground

that the vehicle was sold to another long before the date of the accident but

the insured continued to be the registered owner of the vehicle. Referring to

the judgment of this Court in Naveen Kumar (supra), it was observed that

the policy of insurance was a comprehensive policy which covered third-

party risks as well and, therefore, the insurer could not repudiate one part

of the policy with regard to reimbursing the owner for losses when it could

not evade liability to third parties under the same contract of insurance. In

view of the definition of ‘owner’ in Section 2(30) of the Act of 1988, this

Court observed that the registered owner of the truck, on the date of the

accident, was the insured and, therefore, the insurer could not avoid its

5 (2020) 18 SCC 224

liability for the losses suffered by the owner, on the ground of transfer of

ownership. This Court held that it is difficult to accept that a person who

transferred the ownership of a goods vehicle, on receipt of consideration,

would not report the transfer or apply for transfer of registration and thereby

continue to incur the risks and liabilities of ownership of the said vehicle

under the provisions of law, including the Act of 1988. This Court further

observed that it is equally incredible that an owner of a vehicle who has

paid consideration to acquire it would not insist on transfer of the permit

and thereby expose himself to the penal consequences of operating a

goods vehicle without a valid permit. This Court, accordingly, held that the

registered owner continues to remain the owner and when the vehicle is

insured in the name of such registered owner, the insurer would remain

liable notwithstanding the transfer. This judgment is clearly inapplicable to

the case on hand as it dealt with the liability of an insurer in the event of an

accident involving the vehicle. Further, as already noted, the vehicles in

question were transferred and the requisite forms, insofar as the transferor

was concerned, were filled up and issued but it was the transferees who

failed to get the vehicles transferred in their own names.

27. Mere failure to get registered the name of the new owner of an

already registered vehicle does not mean that the sale/gift transaction

would stand invalidated and such a vehicle, despite being physically

handed over to the new owner, cannot, by any stretch of imagination, be

treated as still being in the possession and control of the former owner.

Once it is accepted that the three vehicles in question were either gifted or

sold before the filing of the nomination by Karikho Kri, the said vehicles

cannot be considered to be still owned by Karikho Kri’s wife and son for

purposes other than those covered by the Act of 1988. However, the High

Court did not take note of this distinguishing factor in the case on hand. In

Kisan Shankar Kathore vs. Arun Dattatray Sawant and others6, the

vehicle, details of which had been suppressed by the returned candidate,

was actually owned and possessed by his wife and such suppression was,

accordingly, held against him. Presently, the High Court itself concluded

that the three vehicles in question were transferred, be it by way of sale or

gift. The vehicles were, therefore, not owned and possessed in praesenti

by the dependent family members of Karikho Kri at the time of the filing of

his nomination. This point of distinction was completely lost sight of by the

High Court but, in our considered opinion, it made all the difference.

 

28. Therefore, non-disclosure of the three vehicles in question could

not be held against Karikho Kri in the light of the aforestated analysis. Such

non-disclosure cannot, by any stretch of imagination, be treated as an

attempt on his part to unduly influence the voters, thereby inviting the wrath

of Section 123(2) of the Act of 1951. We may note that Karikho Kri had

declared the value of the movable assets of his dependent family members

and himself as 8,41,87,815/-. The value of the three vehicles in question,

by comparison, would be a mere miniscule of this figure. In any event,

suppression of the value of these three vehicles would have no impact on

the declaration of wealth by Karikho Kri and such non-disclosure could not

be said to amount to ‘undue influence’.

 

29. Coming to the next ground, if the acceptance of a nomination is

found to be improper and it materially affects the result of the election in so

far as the returned candidate is concerned, Section 100(1)(d)(i) of the Act

of 1951 would come into play. It would be appropriate and apposite at this

stage for us to take note of precedential law on this point. In Vashist

Narain Sharma vs. Dev Chandra and others7, a 3-Judge Bench of this

Court noted that the burden of proving that the improper acceptance of a

nomination has materially affected the result of an election would arise in

one of three ways: (i) where the candidate whose nomination was

improperly accepted had secured less votes than the difference between

the returned candidate and the candidate securing the next highest number

of votes, (ii) where the person referred to above secured more votes, or (iii)

where the person whose nomination has been improperly accepted is the

returned candidate himself. It was held that in the first case the result of the

election would not be materially affected because if all the wasted votes

were added to the votes of the candidate securing the next highest votes, it

would make no difference to the result and the returned candidate would

retain the seat. However, in the other two cases, the result may be

materially affected and insofar as the third case is concerned, it may be

readily conceded that such would be the conclusion.

 

30. In Hari Vishnu Kamath vs. Syed Ahmad Ishaque and others8, a

Constitution Bench of 7 Judges considered the scope of enquiry under

Section 100(1)(d) of the Act of 1951. It was observed that the said provision

required, before an order setting aside an election could be made, that two

conditions be satisfied. It must, firstly, be shown that there has been

improper reception or refusal of a vote or reception of any vote which is

void, or non-compliance with the provisions of the Constitution or the Act of

1951, or any rules or orders made thereunder, relating to the election or

any mistake in the use of the prescribed form and it must further be shown

that, as a consequence thereof, the result of the election has been

materially affected. The Bench observed that the two conditions are

cumulative and must both be established. It was further observed that the

burden of establishing them is on the person who seeks to have the

election set aside. Reference was also made to Vashist Narain (supra).

31. In Kamta Prasad Upadhyaya vs. Sarjoo Prasad Tiwari and

others9, another 3-Judge Bench of this Court affirmed the legal position

settled by Vashist Narain (supra). Again, in Arjun Panditrao Khotkar vs.

Kailash Kushanrao Gorantyal and others10, a 3-Judge Bench of this

Court affirmed the view taken in Vashist Narain (supra) that, where a

person whose nomination has been improperly accepted is the returned

candidate himself, it may be readily conceded that the conclusion has to be

that the result of the election was ‘materially affected’ without their being

any necessity to plead and prove the same.

 

32. In Madiraju Venkata Ramana Raju vs. Peddireddigari

Ramachandra Reddy and others11, another 3-Judge Bench of this Court

affirmed that if there are more than two candidates and if the nomination of

one of the defeated candidates has been improperly accepted, a question

might arise as to whether the result of the election of the returned

candidate has been materially affected by such improper reception but that

would not be so in the case of challenge to the election of the returned

candidate himself on the ground of improper acceptance of his nomination.

 

33. Ergo, if acceptance of the nomination of the returned candidate is

shown to be improper, it would automatically mean that the same materially

affected the result of the election and nothing more needs to be pleaded or

proved. However, whether acceptance of the nomination of Karikho Kri was

actually improper is the main issue that requires to be addressed by us.

 

34. We may also take note of curial wisdom on the issue as to what

would be the defects that would taint a nomination to the extent of

rendering its acceptance improper. In Resurgence India vs. Election

Commission of India and another12, a 3-Judge Bench of this Court

observed that if the Election Commission accepts nomination papers in

spite of blank particulars therein, it would directly violate the fundamental

right of the citizen to know the criminal antecedents, assets, liabilities and

educational qualifications of the candidate. It was observed that accepting

an affidavit with such blanks would rescind the verdict in Union of India

vs. Association for Democratic Reforms and another13. In effect, the

Bench held that filing of an affidavit with blank particulars would render the

affidavit nugatory. In Kisan Shankar Kathore (supra), the issue before this

Court was whether non-disclosure of certain government dues in the

nomination would amount to a material lapse impacting the election of the

returned candidate. On facts, this Court found that the non-disclosure of

electricity and municipal dues was not a serious lapse as there was a

dispute raised in the context thereof. Having said so, this Court clarified

that it would depend upon the facts and circumstances of each case as to

whether such non-disclosure would amount to a material lapse or not. This

Court, however, found that there were, in fact, material lapses by the

returned candidate, inasmuch as he had failed to disclose the bungalow

standing in the name of his wife and also a vehicle owned by her. Further,

he had also failed to disclose his interest/share in a partnership firm which

amounted to a very serious and major lapse. The observations of this

Court, in the context of improper acceptance of his nomination, are of

relevance:

‘43. When the information is given by a candidate in the affidavit

filed along with the nomination paper and objections are raised

thereto questioning the correctness of the information or alleging that

there is non-disclosure of certain important information, it may not be

possible for the Returning Officer at that time to conduct a detailed

examination. Summary enquiry may not suffice. The present case is

itself an example which loudly demonstrates this. At the same time, it

would not be possible for the Returning Officer to reject the

nomination for want of verification about the allegations made by the

objector. In such a case, when ultimately it is proved that it was a

case of non-disclosure and either the affidavit was false or it did not

contain complete information leading to suppression, it can be held at

that stage that the nomination was improperly accepted. Ms

Meenakshi Arora, learned Senior Counsel appearing for the Election

Commission, rightly argued that such an enquiry can be only at a

later stage and the appropriate stage would be in an election petition

as in the instant case, when the election is challenged. The grounds

stated in Section 36(2) are those which can be examined there and

then and on that basis the Returning Officer would be in a position to

reject the nomination. Likewise, where the blanks are left in an

affidavit, nomination can be rejected there and then. In other cases

where detailed enquiry is needed, it would depend upon the outcome

thereof, in an election petition, as to whether the nomination was

properly accepted or it was a case of improper acceptance. Once it is

found that it was a case of improper acceptance, as there was

misinformation or suppression of material i`nformation, one can state

that question of rejection in such a case was only deferred to a later

date. When the Court gives such a finding, which would have

resulted in rejection, the effect would be same, namely, such a

candidate was not entitled to contest and the election is void.

Otherwise, it would be an anomalous situation that even when

criminal proceedings under Section 125-A of the Act can be initiated

and the selected candidate is criminally prosecuted and convicted,

but the result of his election cannot be questioned. This cannot be

countenanced.’

 

35. In Lok Prahari through its General Secretary S.N. Shukla vs. Union

of India and others14, this Court observed that non-disclosure of assets

and sources of income of candidates and their associates would constitute

a corrupt practice falling under the heading ‘undue influence’, as defined

under Section 123 (2) of the Act of 1951. In S. Rukmini Madegowda vs.

14 (2018) 4 SCC 699

29

State Election Commission and others15, a 3-Judge Bench of this Court

observed that a false declaration with regard to the assets of a candidate,

his/her spouse or dependents, would constitute a corrupt practice

irrespective of its impact on the election of the candidate as it may be

presumed that a false declaration would impact the election.

 

36. In Mairembam Prithviraj alias Prithviraj Singh vs. Pukhrem

Sharatchandra Singh16, this Court noted that there is a difference between

improper acceptance of the nomination of a returned candidate as opposed

to improper acceptance of the nomination of any other candidate. It was

observed that a mere finding that there has been an improper acceptance

of a nomination would not be sufficient for a declaration that the election is

void under Section 100(1)(d)(i) and there has to be further pleading and

proof that the result of the election of the returned candidate was materially

affected, but there would be no necessity of any such proof in the event of

the nomination of the returned candidate being declared as having been

improperly accepted, especially in a case where there are only two

candidates in the fray.

 

37. In Association for Democratic Reforms and another vs. Union

of India and others17, a Constitution Bench affirmed that, in terms of the

earlier judgments in Association for Democratic Reforms and another

(supra) and People's Union for Civil Liberties (PUCL) and another vs.

Union of India and another18, the right of voters to information, which is

traceable to Article 19(1)(a) of the Constitution, is built upon the

jurisprudence that information which furthers democratic participation must

be provided to citizens and voters have a right to information which would

enable them to cast their votes rationally and intelligently because voting is

one of the foremost forms of democratic participation. It was further

observed that voters have a right to the disclosure of information which is

‘essential’ for choosing the candidate for whom a vote should be cast.

38. In his Affidavit in Form No. 26, Karikho Kri was required to state as

to whether he had been in occupation of accommodation provided by the

Government at any time during the last 10 years before the date of

notification of the current election and, if so, he was to furnish a declaration

to the effect that there were no dues payable in respect of the said

accommodation in relation to rent, electricity charges, water charges and

telephone charges. Karikho Kri, however, failed to disclose the fact that he

had been in occupation of government accommodation during his tenure as

an MLA between 2009 and 2014. He stated ‘Not applicable’. However, with

regard to the declaration as to there being no dues, he mentioned the date

 ‘22.03.2019’ and stated that the dues in respect of rent, electricity charges,

water charges and telephone charges were ‘Nil’. After Nuney Tayang raised

an objection to his candidature on this ground, Karikho Kri filed the

requisite ‘No Due Certificates’ of 2014.

 

.39. However, the High Court was of the opinion that the failure of

Karikho Kri to disclose the factum of his occupying government

accommodation from 2009 to 2014 and his failure to submit the ‘No Dues

Certificate’ in relation to such government accommodation was sufficient, in

itself, to infer that his nomination was defective and, in consequence, the

acceptance thereof by the Returning Officer, Tezu, was improper.

 

40. Having considered the issue, we are of the firm view that every

defect in the nomination cannot straightaway be termed to be of such

character as to render its acceptance improper and each case would have

to turn on its own individual facts, insofar as that aspect is concerned. The

case law on the subject also manifests that this Court has always drawn a

distinction between non-disclosure of substantial issues as opposed to

insubstantial issues, which may not impact one’s candidature or the result

of an election. The very fact that Section 36(4) of the Act of 1951 speaks of

the Returning Officer not rejecting a nomination unless he is of the opinion

that the defect is of a substantial nature demonstrates that this distinction

must always be kept in mind and there is no absolute mandate that every

non-disclosure, irrespective of its gravity and impact, would automatically

amount to a defect of substantial nature, thereby materially affecting the

result of the election or amounting to ‘undue influence’ so as to qualify as a

corrupt practice.

 

41. The decision of this Court in Kisan Shankar Kathore (supra),

also demonstrates this principle, as this Court undertook examination of

several individual defects in the nomination of the returned candidate and

found that some of them were actually insubstantial in character. This Court

noted that two facets required consideration – Whether there is substantial

compliance in disclosing requisite information in the affidavits filed along

with the nomination and whether non-disclosure of information on identified

aspects materially affected the result of the election. This Court observed,

on facts, that non-disclosure of the electricity dues in that case was not a

serious lapse, despite the fact that there were dues outstanding, as there

was a bonafide dispute about the same. Similar was the observation in

relation to non-disclosure of municipal dues, where there was a genuine

dispute as to re-valuation and re-assessment for the purpose of tax

assessment. Earlier, in Sambhu Prasad Sharma vs. Charandas

Mahant19, this Court observed that the form of the nomination paper is not

considered sacrosanct and what is to be seen is whether there is

substantial compliance with the requirement as to form and every departure

from the prescribed format cannot, therefore, be made a ground for the

rejection of the nomination paper.

 

42. In the case on hand, it is not in dispute that there were no actual

outstanding dues payable by Karikho Kri in relation to the government

accommodation occupied by him earlier. His failure in disclosing the fact

that he had occupied such accommodation and in filing the ‘No Dues

Certificate’ in that regard, with his nomination form, cannot be said to be a

defect of any real import. More so, as he did submit the relevant documents

of 2014 after Nuney Tayang raised an objection before the Returning

Officer. His explanation that he submitted such Certificates in the year 2014

when he stood for re-election as an MLA is logical and worthy of

acceptance. The most important aspect to be noted is that there were no

actual dues and the failure of Karikho Kri to disclose that he had been in

occupation of government accommodation during the years 2009 to 2014

cannot be treated as a defect that is of substantial character so as to taint

his nomination and render its acceptance improper.

 

43. The High Court opined that the nomination of Karikho Kri was

improperly accepted by the Returning Officer as he had failed to disclose

the three vehicles in question, which continued to be registered in the name

of his dependent family members. Non-submission of the ‘No Dues

Certificate’ in respect of the government accommodation occupied by him

during his earlier tenure as an MLA was also held to weigh against him.

Lastly, the High Court held that non-disclosure of the taxes due and

payable by Karikho Kri and his wife was a defect of substantial character

and the same tainted his nomination. In consequence, the High Court

concluded that the acceptance of Karikho Kri’s nomination by the Returning

Officer was improper and as he was the returned candidate, the question of

pleading and proving that such improper acceptance of his nomination

materially affected the result of the election did not arise.

 

44. Though it has been strenuously contended before us that the

voter’s ‘right to know’ is absolute and a candidate contesting the election

must be forthright about all his particulars, we are not inclined to accept the

blanket proposition that a candidate is required to lay his life out threadbare

for examination by the electorate. His ‘right to privacy’ would still survive as

regards matters which are of no concern to the voter or are irrelevant to his

candidature for public office. In that respect, non-disclosure of each and

every asset owned by a candidate would not amount to a defect, much

less, a defect of a substantial character. It is not necessary that a candidate

declare every item of movable property that he or his dependent family

members owns, such as, clothing, shoes, crockery, stationery and furniture,

etc., unless the same is of such value as to constitute a sizeable asset in

itself or reflect upon his candidature, in terms of his lifestyle, and require to

be disclosed. Every case would have to turn on its own peculiarities and

there can be no hard and fast or straitjacketed rule as to when the

non-disclosure of a particular movable asset by a candidate would amount

to a defect of a substantial character. For example, a candidate and his

family who own several high-priced watches, which would aggregate to a

huge figure in terms of monetary value, would obviously have to disclose

the same as they constitute an asset of high value and also reflect upon his

lavish lifestyle. Suppression of the same would constitute ‘undue influence’

upon the voter as that relevant information about the candidate is being

kept away from the voter. However, if a candidate and his family members

each own a simple watch, which is not highly priced, suppression of the

value of such watches may not amount to a defect at all. Each case would,

therefore, have to be judged on its own facts.

 

45. So far as the ground under Section 100(1)(d)(iv) of the Act of

1951 is concerned, the provision requires that the established

non-compliance with the provisions of the Constitution or the Act of 1951 or

any rules or orders made thereunder necessarily has to be shown to have

materially affected the result of the election insofar as it concerns the

returned candidate. Significantly, the High Court linked all the

non-disclosures attributed to Karikho Kri to Section 100(1)(d)(i) of the Act of

1951 but ultimately concluded that his election stood invalidated under

Section 100(1)(d)(iv) thereof. Surprisingly, there is no discussion

whatsoever on what were the violations which qualified as non-compliance

with the provisions of either the Constitution or the Act of 1951 or the rules

and orders framed thereunder, for the purposes of Section 100(1)(d)(iv),

and as to how the same materially affected the result of the election.

46. In Mangani Lal Mandal vs. Bishnu Deo Bhandari20, this Court

held that where a returned candidate is alleged to be guilty of

non-compliance with the provisions of the Constitution or the Act of 1951 or

any rules or orders made thereunder and his election is sought to be

declared void on that ground, it is essential for the election petitioner to

aver, by pleading material facts, that the result of the election insofar as it

concerned the returned candidate has been materially affected by such

breach or non-observance. It was further held that it is only on the basis of

such pleading and proof that the Court would be in a position to form an

opinion and record a finding that such breach or non-compliance has

materially affected the result of the election before election of the returned

candidate could be declared void. It was further observed that mere

non-compliance or breach of the Constitution or the statutory provisions, as

stated above, would not result in invalidating the election of the returned

candidate under Section 100 (1)(d)(iv) as the sine qua non for declaring the

election of a returned candidate to be void on that ground under clause (iv)

of Section 100 (1)(d) is further proof of the fact that such breach or non-

observance has resulted in materially affecting the election of the returned

candidate. For the election petitioner to succeed on such ground, viz.,

Section 100 (1)(d)(iv), he has not only to plead and prove the breach but

also show that the result of the election, insofar as it concerned the

returned candidate, has been materially affected thereby.

 

47. In L.R. Shivaramagowda and others vs. T.M.

Chandrashekar (Dead) by LRs and others21, a 3-Judge Bench of this Court

pointed out that in order to declare an election void under Section 100(1)(d)

(iv) of the Act of 1951, it is absolutely necessary for the election petitioner

to plead that the result of the election, insofar as it concerned the returned

candidate, has been materially affected by the alleged non-compliance with

the provisions of the Constitution or the Act of 1951 or the rules or orders

made thereunder and the failure to plead such material facts would be fatal

to the election petition.

48. However, perusal of the election petition filed by Nuney Tayang

reflects that the only statement made by him in this regard is in Paragraph

21 and it reads as follows:

‘……Hence, his nomination papers suffer from substantial and material

defects. As such, the result of the election, insofar as the respondent

No.1 is concerned, is materially affected by the improper acceptance of

his nomination as well as by the non-compliance with the provisions of

the Representation of the People Act, 1951 and the rules and orders

made thereunder, including Section 33(1) of the Representation of the

People Act, 1951, Rule 4A of the Conduct of Election Rules, 1961 and

the orders made thereunder…...’

Again, in his ‘Ground No. (ii)’, Nuney Tayang stated as under:

‘…….As such, the nomination papers of the respondent Nos. 1 and 2

were improperly accepted by the Returning Officer and the result of the

election in question, insofar as it concerns the respondent No.1 the

return candidate, as well as the respondent No.2, has been materially

affected by such improper acceptance of their nominations……’

Though there are some general references to non-compliance with

particular provisions of the Act of 1951 and the rules made thereunder, we

do not find adequate pleadings or proof to substantiate and satisfy the

requirements of Section 100(1)(d)(iv) of the Act of 1951. Therefore, it is

clear that Nuney Tayang tied up the improper acceptance of Karikho Kri’s

nomination, relatable to Section 100(1)(d)(i) of the Act of 1951, with the

non-compliance relatable to Section 100(1)(d)(iv) thereof and he did not

sufficiently plead or prove a specific breach or how it materially affected the

result of the election, in so far as it concerned the returned candidate,

Karikho Kri. It was not open to Nuney Tayang to link up separate issues

and fail to plead in detail and adduce sufficient evidence in relation to the

non-compliance that would attract Section 100(1)(d)(iv) of the Act of 1951.

The finding of the High Court in that regard is equally bereft of rhyme and

reason and cannot be sustained.

 

49. As regards the failure on the part of Karikho Kri to disclose the

dues of municipal/property taxes payable by him and his wife, the same

cannot be held to be a non-disclosure at all, inasmuch as he did disclose

the particulars of such dues in one part of his Affidavit but did not do so in

another part. In any event, as Mr. Arunabh Chowdhury, learned senior

counsel, fairly stated that he would not be pressing this ground, we need

not labour further upon this point.

50. On the above analysis, we hold that the High Court was in error in

concluding that sufficient grounds were made out under Sections 100(1)(b),

100(1)(d)(i) and 100(1)(d)(iv) of the Act of 1951 to invalidate the election of

Karikho Kri and, further, in holding that non-disclosure of the three vehicles,

that still remained registered in the names of his wife and son as on the

date of filing of his nomination, amounted to a ‘corrupt practice’ under

Section 123(2) of the Act of 1951. In consequence, we find no necessity to

independently deal with Civil Appeal No. 4716 of 2023 filed by Nuney

Tayang, in the context of denial of relief to him by the High Court, or the

issues raised by Dr. Mohesh Chai in the replies filed by him.

51. In the result, Civil Appeal No. 4615 of 2023 filed by Karikho Kri is

allowed, setting aside the Judgment and Order dated 17.07.2023 passed

by the Itanagar Bench of the High Court of Assam, Nagaland, Mizoram and

Arunachal Pradesh in Election Petition No.01(AP) of 2019. In

consequence, the election of Karikho Kri as the returned candidate from 44

Tezu (ST) Assembly Constituency of the State of Arunachal Pradesh is

upheld.

As a corollary, Civil Appeal No. 4716 of 2023, filed by Nuney

Tayang, shall stand dismissed.

Pending applications in both the appeals, if any, shall also stand

disposed of.

This decision shall be intimated to the Election Commission of

India and to the Chairman of the Legislative Assembly of the State of

Arunachal Pradesh forthwith, as required by Section 116C(2) of the Act of

1951.

An authenticated copy of this judgment shall be sent to the

Election Commission of India forthwith.

 

Parties shall bear their own costs.

………………………..,J

(ANIRUDDHA BOSE)

………………………..,J

(SANJAY KUMAR)

April 9, 2024                                                   New Delhi.

 


Thus, from the above it is clear that it is not compulsory to transfer the vehicle (RC transfer) after it is sold in order to establish the sale or purchase of the vehicle in question. The purchase will deemed to have taken place fully whether registered with the authority or not. Just the transaction needs to be proved.




 


The following judgment of the Hon'ble Supreme Court explains if Can Cheque be given as Security against Loan

 

 

 

2024 INSC 586 Criminal Appeal No.3257 of 2024 @ SLP (Crl.) No.13179 of 2023 

 

Cheque Security Against Loan

 

Page 1 of 28

REPORTABLE

 

IN THE SUPREME COURT OF INDIA

 

CRIMINAL APPELLATE JURISDICTION

CRIMINAL APPEAL NO. 3257 OF 2024

(@ SLP (CRIMINAL) NO. 13179 OF 2023)

 

SRI DATTATRAYA … APPELLANT

VERSUS

SHARANAPPA … RESPONDENT

 

J U D G M E N T

 

AUGUSTINE GEORGE MASIH, J.

 

1. Leave granted.

 

2. The instant appeal was originally preferred as a petition

before this Court, which is moved against the impugned

Judgment dated 03.03.2023 in Criminal Appeal No.

200139 of 2019 by the High Court of Karnataka at

Kalaburagi whereby the learned Single Judge affirmed

the acquittal of the Respondent in Complaint Case No.

468 of 2014 moved for the offence punishable under

Section 138 of the Negotiable Instruments Act, 1881

(hereinafter referred to as “NI Act 1881”).

 

3. The factual backdrop giving rise to the present challenge

is that the Appellant is the original complainant who

claims to know the sole Respondent for the last six years

and that he had borrowed INR 2,00,000/- (Rupees Two

Lakhs only) from the Appellant on account of family

necessities and accommodation. Against the said loan

the Respondent issued a cheque bearing No. 015639

which was drawn on the Bank of India, as a guarantee

against repayment. He was to repay the said loan

amount within a period of six months thereof. An

agreement to this effect was also signed between the

parties.

 

4. However, since the Respondent failed to repay the loan

despite repeated requests, the Appellant presented the

concerned cheque for encashment on 22.10.2013, but

nevertheless, as per the Bank Memo dated 24.10.2013,

the cheque was dishonoured on account of “insufficient

funds”.

 

5. Aggrieved from the said dishonour of cheque, a Demand

Notice dated 31.10.2013 was sent by the Appellant to

the Respondent, whereby, the Counsel on behalf of the

Appellant alleged that the Respondent had intentionally

cheated him and had not made any efforts to discharge

his liability. Accordingly, the Respondent was said to

have committed offences punishable under Section 138

of the NI Act 1881 and Section 420 of the Indian Penal

Code, 1860 (hereinafter referred to as “IPC 1860”).

 

6. Thereupon, the Respondent moved a Reply Notice dated

11.11.2013 whereby he claimed that the accusations

made by the Appellant are false and bereft of pertinent

details of the loan transaction, inter alia, the date and

time of advancement of the said debt, which as claimed,

was never advanced.

 

7. Unsatisfied with the response of the Respondent

through the said Reply Notice, Appellant moved a Private

Complaint No. 991 of 2013 under Section 200 of the

Code of Criminal Procedure, 1973 (hereinafter referred

to as “CrPC 1973”). The said complaint came to be

registered as CC/468/2014 before Judicial Magistrate

First Class at Gulbarga. As part of the proceedings

before the Trial Court, the Appellant examined himself

as PW-01, while the Respondent examined himself as

DW-01. However, the latter did not mark any documents

from his side. It was the Respondent’s plea that the

concerned cheque was issued in favour of one Mr

Mallikarjun in the year 2012 for security purposes,

however, he did not return the same to the Respondent,

and instead had left the village. While dealing with the

said contention, the Trial Court observed that the

Respondent had failed to explain as to how the cheque

landed in the hands of the Appellant, and for what

purpose was the cheque issued to Mr Mallikarjun.

 

8. It was also revealed as part of the statement during

cross-examination of the Appellant that the cheque was

originally, not given to the Appellant as security cheque.

Instead, the same was allegedly given to the Appellant

after the Respondent had thereby failed to repay his

liability as existing against the Appellant after a period

of six months. The Court further observed that the

Agreement marked by the Appellant to assist his case

does not include signature of the Respondent as against

the terms of the agreement, but a signature is made by

the Respondent on the stamp paper itself, and the same

is not sustainable in the eyes of law. The Court also went

on to scrutinize the Income Tax Returns of the Appellant,

from where it was revealed that the Appellant failed to

declare the alleged loan transaction as part of his

returns to the Income Tax Department. Accordingly, vide

its Judgment dated 18.10.2019, the Trial Court

adjudicated in favour of the Respondent, resultantly

dismissing the complaint moved by the Appellant and

acquitting the Respondent.

 

9. Aggrieved by the decision of Trial Court, the Appellant

moved the High Court of Karnataka in Criminal Appeal

No. 200139 of 2019, which went on to observe that,

admittedly, there was a contradiction in the statement

of the Appellant as to when the cheque was issued in his

favour. Furthermore, as was laid down in the decision

of this Court in Rangappa v. Sri Mohan1, the

1 (2010) 11 SCC 441.

presumption under Section 139 of the NI Act 1881 is a

rebuttable one. The contention of the Respondent as to

the financial capacity of the Appellant to grant a loan in

his favour was to be discharged by him, and being

unable to do so, it shall be presumed that a loan

transaction had not taken place. Accordingly, the

findings of the Trial Court were affirmed in the impugned

Judgment dated 03.03.2023.

 

10. The Appellant has thereupon moved this Court in

challenge to the said impugned judgment on the

grounds that as the signature on the concerned cheque

was admitted by the Respondent, the Appellant was able

to successfully raise a presumption under Section 139

of the NI Act 1881 and as per the submissions of the

Respondent, he had failed to rebut the said

presumption. He also put forth that the reliance on the

decision in Rangappa (supra) by the High Court was

misplaced, and even going by the standard of

preponderance of probabilities, the Respondent failed to

discharge his onus.


11. Having heard the learned Senior Advocate for the

Appellant as well as the learned Counsel on behalf of the

Respondent, it is imperative to deliberate over the

position of law apropos the applicable provisions of the

NI Act 1881, and others, if any.

 

12. Earlier, a case of dishonour of a cheque was dealt

through provisions of Section 420 read with Section 415

of the IPC 1860. To enhance the acceptability of cheques

as well as to provide for adequate safeguards to prevent

harassment of honest drawers through painting the

liability arising out of dishonour of a cheque with a

punitive brush, an amendment to the NI Act 1881 was

brought about by introducing Chapter VIII. Thence,

seeking to promote credibility in transactions through

the medium of banking channels and operations as well

as their efficacy. Section 138 of the NI Act 1881 is

reproduced below as:

 

“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 with that

bank, such person shall be deemed to have committed

an offence and shall, without prejudice to any other

provision of this Act, be punished with imprisonment for

a term which 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.

 

Explanation.- For the purposes of this section, “debt of

other liability” means a legally enforceable debt or

other liability.”

 

13. This Court in ICDS Ltd. v. Beena Shabeer and

Another2, has held that proceedings under Section 138

of the NI Act 1881 can be initiated even if the cheque

2 (2002) 6 SCC 426.

was originally issued as security and was subsequently

dishonoured owing to insufficient funds. The failure to

honour the concerned cheque is per se deemed as a

commission of an offence under Section 138 of the NI

Act 1881.

 

14. The NI Act 1881 enlists three essential conditions that

ought to be fulfilled before the said provision of law can

be invoked. 

Firstly, the cheque ought to have been

presented within the period of its validity. 

Secondly, a demand of payment ought to have been made

by the presenter of the cheque to the issuer, and lastly, the

drawer ought to have had failed to pay the amount

within a period of 15 days of the receipt of the demand.

These principles and pre-requisites stand well

established through Judgment of this Court in

Sadanandan Bhadran v. Madhavan Sunil Kumar3.

There is an explicit limitation of 30 days, beginning from

period when the cause of action arose, prescribed by the

3 (1998) 6 SCC 514.

statute vide Section 142(b) of the NI Act 1881 to initiate

proceedings under Section 138 of the NI Act 1881.

 

15. Furthermore, this Court expounded that the issuance of

cheque towards a liability, the presentation of the

cheque within the prescribed period, its return on

account of dishonour, notice to the accused, and failure

to pay within 15 days thereof, stand as sine qua non for

an offence under Section 138 of the NI Act 1881 as per

the decision in K. Bhaskaran v. Sankaran Vaidhyan

Balan and Another4. The same was subsequently

reiterated in numerous judgments of this Court as well

as that of the High Courts.

 

16. While referring to the period of limitation of one month

of filing a complaint for the purpose of Section 138 of the

NI Act 1881, the same is to begin after the drawer of the

cheque has failed to discharge his liability to the

presenter within the prescribed period of 15 days as per

the Proviso (c) to Section 138 of the NI Act 1881. A co-

joint reading of Sections 138 and 142 of the NI Act 1881

4 (1999) 7 SCC 510.

makes it clear that the cause of action only arises after

the failure of the drawer to pay, subsequent to the

receipt of the notice, and the complainant is restricted

from initiating multiple complaints against the

concerned drawer at different stages contemplated prior.

 

17. Furthermore, in light of such object encapsulated in the

Amendment to Chapter VIII, the Parliament by virtue of

Section 143 of the NI Act 1881 prescribed procedure of

summary trial enlisted in provisions of Sections 260 to

265 of the CrPC 1973 to be adopted during proceedings

under Section 138 of the NI Act 1881. Therefore, it can

be observed that the court shall adopt a liberal approach

with regard to attendance of an accused person and

until an accused’s presence is indispensable, a court can

allow for an exemption, in case of existence of any

exceptional circumstances. Moreover, issuance of a non-

bailable warrant in case of absence of the accused, at

the first instance, shall, due to any circumstance, be

avoided.


18. As the presumption contemplated by virtue of Section

118 of the NI Act 1881 entails, Section 139 was similarly

introduced to provide for a presumption that the holder

of cheque had received the concerned issued cheque

towards discharging of the liability of the drawer, either

in whole or in part. Therefore, at this juncture, it is ideal

to make a reference to Section 118 of the NI Act 1881,

which is reproduced as:

“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, indorsed,

negotiated or transferred for consideration.

 

(b) as to date:-that every negotiable instrument

bearing a date was made or drawn on such date.

 

(c) as to time of acceptance:-that every accepted

bill of exchange was accepted within a

reasonable time after its date and before its

maturity.

 

(d) as to time of transfer: -that every transfer of a

negotiable instrument was made before its

maturity.

 

(e) as to order of indorsements: that the

indorsements appearing upon a negotiable

instrument were made in the order in which they

appear then on.

 

(f) as to stamp:  that a lost promissory note, bill of

exchange or cheque was duly stamped;


(g) that holder is a holder in due course: that the

holder of a negotiable instrument is a holder in

due course: provided that, where the instrument

has been obtained from its lawful owner, or from

any person in lawful custody thereof, by means

of an offence or fraud, or has been obtained from

the maker or acceptor thereof by means of an

offence or fraud, or for unlawful consideration,

the burden of proving that the holder is a holder

in due course lies upon him.”

Chapter XIII of the NI Act 1881, of which Section 118 is

a part, lays down special rules for evidence to be

adduced within the scheme of the Act herein. As the text

of the said provision showcases, it raises a rebuttable

presumption as against the drawer to the extent that the

concerned negotiable instrument was drawn and

subsequently accepted, indorsed, negotiated, or

transferred for an existing consideration, and the date

so designated on such an instrument is the date when

the concerned negotiable instrument was drawn. It is

also further presumed that the same was transferred

before its maturity and that the order in which multiple

indorsements appear on such an instrument, that is the

deemed order thereon. Lastly, the holder of a negotiable

instrument is one in its due course, subject to a

situation where the concerned instrument while being

obtained from a lawful owner and from his or her lawful

custody thereof through undertaking of an offence as

contemplated under any statute or through the means

of fraud, the burden to prove him or her being a holder

in due course, instead, lies upon such a holder.

 

19. Accordingly, to begin with, the bare provision of Section

139 of the NI Act 1881 is reproduced herein below:

“139. Presumption in favour of holder- It shall be

presumed, unless the contrary is proved, that the

holder of a cheque received the cheque of the nature

referred to in section138 for the discharge, in whole or

in part, of any debt or other liability.”

The aforesaid presumption entails an obligation on the

court conducting the trial for an offence under Section

138 of the NI Act 1881 to presume that the cheque in

question was issued by the drawer or accused for the

discharge of a particular liability. The use of expression

“shall presume” ameliorates the conundrum pertaining

to the right of the accused to present evidence for the

purpose of rebutting the said presumption.

Furthermore, the effect of such presumption is that,

upon filing of the complaint along with relevant

documents, thereby prima facie establishing the case

against the drawer, the onus of proof shifts on the

drawer or accused to adduce cogent material and

evidence for rebutting the said presumption, and as

established in Laxmi Dyechem v. State of Gujarat and

Others5, based on preponderance of probabilities.

 

20. While describing the offence envisaged under Section

138 of the NI Act 1881 as a regulatory offence for largely

being in the nature of a civil wrong with its impact

confined to private parties within commercial

transactions, the 3-Judge Bench in the decision of

Rangappa (supra) highlighted Section 139 of the NI Act

1881 to be an example of a reverse onus clause. This is

done so, as the Court expounds, in the light of

Parliament’s intent, which can be culled out from the

peculiar placing of act of dishonour of cheque in a

statute having criminal overtones. The underlying object

of such deliberate placement is to inject and enhance

5 (2012) 13 SCC 375.

credibility of negotiable instruments. Additionally, the

reverse onus clause serves as an indispensable “device

to prevent undue delay in the course of litigation”. While

acknowledging the test of proportionality and having laid

the interpretation of Section 139 of the NI Act 1881

hereof, it was further held that an accused cannot be

obligated to rebut the said presumption through an

unduly high standard of proof. This is in light of the

observations laid down by a co-ordinate Bench in Hiten

P. Dalal v. Bratindranath Banerjee6, whereby it was

clarified that the rebuttal ought not to be undertaken

conclusively by an accused, which is reiterated as

follows:

“23. In other words, provided the facts required to form

the basis of a presumption of law exist, 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. A fact is said to be proved when,

‘after considering the matters before it, the court

either believes it to exist, or considers its existence

so probable that a prudent man ought, under the

circumstances of the particular case, to act upon

the supposition that it exists’ [Section 3, Evidence

Act].


Therefore, the rebuttal does not have to be conclusively

established but such evidence must be adduced before

the court in support of the defence that the court must

either believe the defence to exist or consider its

existence to be reasonably probable, the standard of

reasonability being that of the ‘prudent man’.”

Therefore, it may be said that the liability of the defence

in cases under Section 138 of the NI Act 1881 is not that

of proving its case beyond reasonable doubt.

 

21. In light of the aforesaid discussion, and as underscored

by this Court recently in the decision of Rajesh Jain v.

Ajay Singh7, an accused may establish non-existence of

a debt or liability either through conclusive evidence that

the concerned cheque was not issued towards the

presumed debt or liability, or through adduction of

circumstantial evidence vide standard of preponderance

of probabilities.

 

22. Since a presumption only enables the holder to show a

prima facie case, it can only survive before a court of law

subject to contrary not having been proved to the effect

that a cheque or negotiable instrument was not issued

for a consideration or for discharge of any existing or

7 (2023) 10 SCC 148.

future debt or liability. In this backdrop, it is pertinent

to make a reference to a decision of 3-Judge Bench in

Bir Singh v. Mukesh Kumar8, which went on to hold

that if a signature on a blank cheque stands admitted to

having been inscribed voluntarily, it is sufficient to

trigger a presumption under Section 139 of the NI Act

1881, even if there is no admission to the effect of

execution of entire contents in the cheque.

 

23. It is therefore apposite to make a reference to the

provision of Section 140 of the NI Act 1881, which

ruminates mens rea to be immaterial while dealing with

proceedings under Section 138 of the NI Act 1881. The

said legislative wisdom of the Parliament which is

imbibed in the bare text of the provision is reproduced

as below:

“140. Defence which may not be allowed in any

prosecution under section 138- It shall not be a

defence in a prosecution for an offence under section

138 that the drawer had no reason to believe when he

issued the cheque that the cheque may be dishonoured

on presentment for the reasons stated in that section.”

8 (2019) 4 SCC 197.


24. Through this legal fiction adopted by the legislature vide

Amendment Act of 1988 to the NI Act 1881 it has barred

the drawer of a cheque, which was dishonoured, to take

a defence that at the time of issuance of the cheque in

question he or she had no reason to believe that the

same will be dishonoured upon being presented by the

holder of such a cheque, especially and specifically for

the reasons underlined in Section 138 of the NI Act

1881.

 

25. A comprehensive reference to the Sections 118, 139 and

140 of the NI Act 1881 gives birth to a deemed fiction

which was also articulated by this Court in K.N. Beena

v. Muniyappan and Another9 as follows:

 

Under section 118, unless the contrary was proved, it

is to be presumed that the negotiable instrument

(including a cheque) had been made or drawn for

consideration. Under section 139 the court has to

presume, unless the contrary was proved, that the

holder of the cheque received the cheque for discharge,

in whole or in part, of a debt or liability. Thus, in

complaints under section 138, the court has to presume

that the cheque had been issued for a debtor’s liability.

This presumption is rebuttable. However, the burden of

proving that a cheque had not been issued for a debt or

liability is on the accused. The Supreme Court in the

9 (2001) 8 SCC 458.

case of Hiten P. Dalal v. Bratindranath Banerjee has

also taken an identical view.”

 

26. Furthermore, on the aspect of adducing evidence for

rebuttal of the aforesaid statutory presumption, it is

pertinent to cumulatively read the decisions of this

Court in Rangappa (supra) and Rajesh Jain (supra)

which would go on to clarify that accused can

undoubtedly place reliance on the materials adduced by

the complainant, which would include not only the

complainant’s version in the original complaint, but also

the case in the legal or demand notice, complainant’s

case at the trial, as also the plea of the accused in the

reply notice, his Section 313 CrPC 1973 statement or at

the trial as to the circumstances under which the

promissory note or cheque was executed. The accused

ought not to adduce any further or new evidence from

his end in said circumstances to rebut the concerned

statutory presumption.

 

27. Applying the aforementioned legal position to the

present factual matrix, it is apparent that there existed

a contradiction in the complaint moved by the Appellant

as against his cross-examination relatable to the time of

presentation of the cheque by the Respondent as per the

statements of the Appellant. This is to the effect that

while the Appellant claimed the cheque to have been

issued at the time of advancing of the loan as a security,

however, as per his statement during the cross-

examination it was revealed that the same was

presented when an alleged demand for repayment of

alleged loan amount was raised before the Respondent,

after a period of six months of advancement.

Furthermore, there was no financial capacity or

acknowledgement in his Income Tax Returns by the

Appellant to the effect of having advanced a loan to the

Respondent. Even further the Appellant has not been

able to showcase as to when the said loan was advanced

in favour of the Respondent nor has he been able to

explain as to how a cheque issued by the Respondent

allegedly in favour of Mr Mallikarjun landed in the hands

of the instant holder, that is, the Appellant.


28. Admittedly, the Appellant was able to establish that the

signature on the cheque in question was of the

Respondent and in regard to the decision of this Court

in Bir Singh (supra), a presumption is to ideally arise.

However, in the above referred context of the factual

matrix, the inability of the Appellant to put forth the

details of the loan advanced, and his contradictory

statements, the ratio therein would not impact the

present case to the effect of giving rise to the statutory

presumption under Section 139 of the NI Act 1881. The

Respondent has been able to shift the weight of the

scales of justice in his favour through the preponderance

of probabilities.

 

29. The Trial Court had rightly observed that the Appellant

was not able to plead even a valid existence of a legally

recoverable debt as the very issuance of cheque is

dubious based on the fallacies and contradictions in the

evidence adduced by the parties. Furthermore, the fact

that the Respondent had inscribed his signature on the

agreement drawn on a white paper and not on a stamp

paper as presented by the Appellant, creates another set

of doubt in the case. Since the accused has been able to

cast a shadow of doubt on the case presented by the

Appellant, he has therefore successfully rebutted the

presumption stipulated by Section 139 of the NI Act

1881.

 

30. Moreover, affirming the findings of the Trial Court, the

High Court observed that while the signature of the

Respondent on the cheque drawn by him as well as on

the agreement between the parties herein stands

admitted, in case where the concern of financial capacity

of the creditor is raised on behalf of an accused, the

same is to be discharged by the complainant through

leading of cogent evidence.

 

31. The instant case pertains to challenge against

concurrent findings of fact favouring the acquittal of the

respondent, it would be cogent to delve into an analysis

of the principles underlining the exercise of power to

adjudicate a challenge against acquittal bolstered by

concurrent findings. 

 

The following broad principles can

be culled out after a comprehensive analysis of judicial

pronouncements:

 

i) Criminal jurisprudence emphasises on the

fundamental essence of liberty and presumption of

innocence unless proven guilty. This presumption

gets emboldened by virtue of concurrent findings of

acquittal. Therefore, this court must be extra-

cautious while dealing with a challenge against

acquittal as the said presumption gets reinforced by

virtue of a well-reasoned favourable outcome.

Consequently, the onus on the prosecution side

becomes more burdensome pursuant to the said

double presumption.

 

ii) In case of concurrent findings of acquittal, this

Court would ordinarily not interfere with such view

considering the principle of liberty enshrined in

Article 21 of the Constitution of India 1950, unless

perversity is blatantly forthcoming and there are

compelling reasons.


iii) Where two views are possible, then this Court would

not ordinarily interfere and reverse the concurrent

findings of acquittal. However, where the situation

is such that the only conclusion which could be

arrived at from a comprehensive appraisal of

evidence, shows that there has been a grave

miscarriage of justice, then, notwithstanding such

concurrent view, this Court would not restrict itself

to adopt an oppugnant view. [Vide State of Uttar

Pradesh v. Dan Singh10]

 

iv) To adjudge whether the concurrent findings of

acquittal are ‘perverse’ it is to be seen whether there

has been failure of justice. This Court in Babu v.

State of Kerala11 clarified the ambit of the term

‘perversity’ as

“if the findings have been arrived at by ignoring

or excluding relevant material or by taking into

consideration irrelevant/admissible material. The

finding may also be said to be perverse if it is

‘against the weight of evidence’, or if the finding

so outrageously defies logic as to suffer from the

vice of irrationality.”


v) In situations of concurrent findings favoring

accused, interference is required where the trial

court adopted an incorrect approach in framing of

an issue of fact and the appellate court whilst

affirming the view of the trial court, lacked in

appreciating the evidence produced by the accused

in rebutting a legal presumption. [Vide Rajesh Jain

v. Ajay Singh12]

 

vi) Furthermore, such interference is necessitated to

safeguard interests of justice when the acquittal is

based on some irrelevant grounds or fallacies in re-

appreciation of any fundamental evidentiary

material or a manifest error of law or in cases of non-

adherence to the principles of natural justice or the

decision is manifestly unjust or where an acquittal

which is fundamentally based on an exaggerated

adherence to the principle of granting benefit of

doubt to the accused, is liable to be set aside. Say in

cases where the court severed the connection

between accused and criminality committed by him

upon a cursory examination of evidences. [Vide

State of Punjab v. Gurpreet Singh and Others13

and Rajesh Prasad v. State of Bihar14]

 

32. Upon perusal of the aforementioned principles and

applying them to the facts and circumstances of the

present matter, it is evident that there is no perversity

and lack of evidence in the case of the respondent-

accused. The concurrent findings have backing of

detailed appraisal of evidences and facts, therefore, do

not warrant interference in light of above enlisted

principles. In a similar set of facts as in the present case,

involving criminal liability arising out of dishonour of

cheque, this Court in M/s Rajco Steel Enterprises v.

Kavita Saraff and Another15 dejected from reversing

unless such findings are perverse or bereft of evidentiary

corroboration or lacks question of law.

 

33. In furtherance of the aforesaid principles and the

reasons ascribed thereof, the present challenge to the

aforesaid impugned judgment dated 03.03.2023 by the

High Court of Karnataka at Kalaburagi is bereft of any

merits and does not call for any interference of this

court.

 

34. The instant appeal is dismissed and the findings of the

High Court in the impugned judgment dated 03.03.2023

are affirmed.

 

35. Pending applications, if any, also stand disposed of.

 

……………………………………………J.

(B.V. NAGARATHNA)

……………………………………………J.                    (

AUGUSTINE GEORGE MASIH)

NEW DELHI;                                         AUGUST 07, 2024.

 

 

 

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