Depositions from prior proceedings can be admitted in subsequent proceedings against same party - Criminal Court in 138 proceedings had found that Cheque was not issued for legally enforceable debt - Held, acquittal in Criminal case does not preclude Civil liability for debt.

2024 (4) СТС 673

IN THE HIGH COURT OF MADRAS R. Subramanian & R. Sakthivel, JJ.

O.S.A. No.35 of 2021

15.3.2024

M. Balaji.                   ...Appellant

Vs.

Perim Janardhana Rao. 2. Jay AR Enterprises, rep. by its Partner, Perim Janardhana Rao, No.7, N.S. Krishnan Street, Easwaran Nagar, Pammal, Chennai-600 075. 3. Perim Janardhana Rao. 4. K. Rajendra Reddy.            .....Respondents

Contract Act, 1872 (9 of 1872), Sections 186, 187, 226 & 227 - Agent's authority to acknowledge debt on behalf of Principal validity of Implied authority of Agent Scope and Suit for recovery of sum based on dishonoured Cheque issued by Defendant Defendant contended that Cheque was stolen and claimed no enforceable debt Defendant's Power of Attorney executed Acknowledgment of liability Defendant contended PoA's Acknowledgment was unauthorized Court dismissed Suit, holding that no enforceable debt existed Trial Held, Defendant aware of Acknowledgment and failed to repudiate it for nearly 9 years Even if Agent's act exceeds authority, lack of repudiation by Principal within reasonable time implies ratification Agent's Acknowledgment valid and binding on Defendant - Appeal allowed Plaintiff entitled to recovery with interest. (Paras 35-38 & 43)

Evidence Act, 1872 (1 of 1872), Section 33 Admissibility of evidence from previous proceedings Depositions from prior proceedings can be admitted in subsequent proceedings against same party, if they constitute admissions Section 33 does not preclude using such depositions to demonstrate contradictions in party's stance Prior deposition of Defendant from Criminal proceedings admitted as evidence to establish contradictions in Defendant's case. (Paras 31-34)

Negotiable Instruments Act, 1881 (26 of 1881), Section 138 Legally Enforceable Debt - Findings of Criminal Court - Effect of - Whether binding on Civil Court while deciding Civil liability - For Cheque to be considered valid under Section 138, it must be issued for legally enforceable debt or liability - Criminal Court in 138 proceedings had found that Cheque was not issued for legally enforceable debt - Held, acquittal in Criminal case does not preclude Civil liability for debt - Cheque issued by Defendant for reimbursing expenses incurred by Plaintiff Inconsistent statements by Defendant regarding Cheque's purpose and handling establish case of Defendant as improbable