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2020 (9) TMI 107 - HC - Indian LawsDishonor of Cheque - acquittal of the accused - rebuttal of presumption - Section 138 of the Negotiable Instruments Act - whether the cheque was given in security or not and its effect? HELD THAT:- If any cheque is given in security, then presumption of legally enforceable debt or liability exists which has to be rebutted by the accused to the extent that full amount due and payable to the complainant has been paid or otherwise. Here in the case in hand, accused did not discharge the onus lying over her and she could not rebut the presumption as per Section 118 and Section 139 of the Act. Mohsin did not enter into witness box and he could have been the witness who could have elaborated the intention of the parties. Although agreement to sell and issuance of cheque were admitted by the accused and rightly so because she signed those instruments, and therefore, it was herculean task for her to discharge the onus. Nevertheless she failed even otherwise. In the cumulative analysis, it is established that trial Court erred in passing the impugned judgment regarding acquittal in favour of the accused i.e. respondent - impugned judgement set aside. Appeal allowed.
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