Negotiable Instruments Act, 1881 (NI Act) – Sections 138 and 139- Indian Penal Code, 1860 (IPC) – Sections 294(b), 409, 448, 420, 506(ii) – The petitioners challenged their conviction under Section 138 of the NI Act for cheque dishonour, which was affirmed by the First Appellate Court. The complaint alleged they took personal loans and issued cheques that bounced.
The petitioners argued they were only guarantors for a loan taken by D.W.1 (Jeeva), providing blank cheques as security, and thus had no personal legally enforceable debt. Their defence was supported by D.W.1’s testimony and an FIR lodged by her against the complainant, alleging misuse of cheques and threats.