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2020 (3) TMI 519 - HC - Indian LawsDishonor of Cheque - insufficiency of funds - section 138 of NI Act - legally enforceable debt or not - HELD THAT:- By virtue of Sections 118 and 139 of Negotiable Instruments Act, there is a presumption that the cheque was issued towards the a legally enforceable debt. The contention that a blank cheque was issued to the complainant is not tenable. Merely because a blank cheque was issued, it could not be assumed that the presumption under Section 118 and 139 of Negotiable Instruments Act, is not applicable. Even if a blank cheque was issued as contended by the accused, it is settled principle of law that presumption could be pressed into service. The Court below has rightly applied the presumption under Sections 138 and 139 of the Negotiable Instruments Act and convicted and sentenced the accused. However, considering the amount involved, it is not necessary to incarcerate the accused in prison for the offence under Section 138 of the Negotiable Instruments Act. Instead of sentencing the accused for a jail term, it is just and proper to sentence the accused to pay a fine of ₹ 10,000/- and in default to undergo simple imprisonment for a period of two months more. In case the fine amount is remitted the same shall be paid to the complainant as compensation. Revision allowed in part.
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