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2019 (5) TMI 1753 - HC - Indian LawsDishonor of Cheque - insufficiency of funds - Section 138 of Negotiable Instruments Act, 1881 - petitioner contended that no demand for payment of the amount of the cheque was made by the complainant as per the notice (Annexure-I) sent by him under clause (b) of the proviso to Section 138 of the Act and therefore, the notice is defective and the proceedings initiated against the petitioner pursuant to such notice cannot be sustained. HELD THAT:- Section 139 of the Act provides that it shall be presumed, unless the contrary is proved, that the holder of a cheque received the cheque of the nature referred to in Section 138 for discharge, in whole or in part, of any debt or other liability. The complainant is entitled to take advantage of this statutory presumption. It is settled law that at this stage the Court is not justified in embarking upon an enquiry as to the reliability or genuineness or otherwise of the allegations made in the complaint. At this stage, the Court could not go into the merits and come to a conclusion that there was no existing debt or liability. At the initial stage of the proceedings, the High Court is not justified in entertaining and accepting a plea that there was no debt or liability. In the instant case, the complaint contains averments with regard to all the aspects mentioned in section 138. It has also been found that Annexure-I notice meets the requirement under Clause (b) of the proviso to Section 138 of the Act. Petition dismissed.
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