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2018 (9) TMI 840 - HC - Indian LawsDishonor of Cheque on the ground of “exceeds arrangement” - Section 138 of Negotiable Instruments Act - Held that:- It is clear from the evidence that Dinesh Kumar did not discharge his loan liability, as he failed to pay the installments of the loan. It has also come on record that Dinesh Kumar knew that in case he fails to discharge his financial liability, then the same would be recovered from his father, who stood his guarantor. The accused signed the cheque and he has also not disputed the same. The accused has also admitted that he signed the acknowledgement, through which legal notice qua demand was issued to him. Thus, the above material is suffice to conclude that in order to extinguish the financial liability of Dinesh Kumar, the accused issued cheque amounting to ₹ 2,15,000/-. The next set of evidence establishes that the cheque issued by the accused was dishonoured on the ground of “exceeds arrangement” and despite issuance of notice he could not pay the cheque amount. In fact, after receipt of the notice, the accused did not do anything, thus his sleeping over the financial liability, in itself is a proof that he admitted his liability to pay the cheque amount. Issuance of cheque and admission of signature thereon would invoke presumption of legally enforceable debt in favour of holder and the accused needs to rebut such presumption. However, in the case in hand, the accused failed to rebut such presumption. Petition dismissed.
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