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2021 (8) TMI 439 - HC - Indian LawsDishonor of Cheque - acquittal of the accused - legally enforceable debt or not - allegation of clerk misusing the cheque - rebuttal of resumption - Section 139 of N.I.Act - HELD THAT:- When the respondent/accused has admitted his signature on the cheque and when the cheque belongs to him, admittedly the appellant/complainant is a holder of the cheque in due course under Section 118 of N.I.Act. Hence, the presumption under Section 139 of N.I.Act is in favour of the appellant/complainant and it is for the respondent/accused to rebut the said presumption, which is mandatory and statutory presumption. The respondent/accused did not lead any defence evidence for rebutting the presumption and he can rebut the presumption by available material, but mere denial does not amount to rebuttal of the presumption. The trial court while considering the transaction has dealt it as if a civil case and casted burden on the appellant/complainant to prove the transaction ignoring the presumption under Section 139 of N.I.Act - The trial court committed an error apparent on the face of the records by casting burden on the appellant/complainant against the mandatory requirement under Section 139 of N.I.Act. The learned Magistrate has erred in holding that there is no legally enforceable debt and committed an error in acquitting the respondent/accused. The judgment of acquittal passed by the learned Magistrate is erroneous, illegal and capricious and as such, it calls for interference by this court in this appeal. The impugned order of acquittal passed by the Principal Senior Civil Judge & CJM, Gadag is set aside - Appeal allowed.
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