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2014 (7) TMI 1350 - HC - Indian LawsDishonor of Cheque - funds insufficient - discharge of legally enforceable debt or not - rebuttal of presumption - offence punishable under Section 138 of the Negotiable Instruments Act - HELD THAT:- It is revealed that the legal notice was issued by respondent No. 1 to all the applicants on their address and in spite of intimation given to the applicants by the Postal Department as they were not claiming the notice, the notice was returned to respondent No. 1 with endorsement "not claimed". It is further found averred in the complaint that all the applicants are equally responsible for the offence committed by them and they have issued the said cheque to discharge their legal liability towards respondent No. 1. There are no substance in the criminal applications as admittedly the applicants are Directors of applicant No. 1 Company and proviso to Section 141 of the Negotiable Instruments Act can come into play in favour of applicants to save themselves from the punishment, if it is proved in the trial that the offence was committed without their knowledge. The applicants, who are Directors of applicant No. 1 Company, can also save themselves from punishment if they prove that they have exercised all due diligence to prevent the commission of such offence and also cheque involved in the prosecution is issued by the applicant No. 2 without their consent. The presumption under Section 139 of the Negotiable Instruments Act is that respondent No. 1 received the said cheque towards discharge of legal liability or debt. The burden to rebut the said presumption is on the applicant No. 1 Company and it can only be rebutted during trial. The criminal applications are dismissed.
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