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2021 (10) TMI 525 - HC - Indian LawsDishonor of Cheque - insufficiency of funds - misuse of cheque issued as security for older transaction - acquittal of the accused - rebuttal of statutory presumption under Section 139 of the Negotiable Instruments Act - legally enforceable debt or not - HELD THAT:- The fact that there was an earlier transaction in the year 1995 and that liability had been settled by repayment is a factor which would lend credence to the case of the 2nd respondent/accused that Ext.P1 cheque was one issued as security in the discharge of that liability and such cheque was misused by the appellant/complainant to make it appear that there was a subsequent transaction. In the totality of the facts and circumstance of this case, this Court should not interfere with the findings rendered by the trial court. The 2nd respondent/accused has succeeded in showing that the statutory presumption under Section 139 of the Negotiable Instruments Act should not be applied. In other words the 2nd respondent/accused has been able to rebut the statutory presumption. The appellant/complainant has not thereafter been able to bring in any evidence suggesting the existence of a transaction resulting in a legally enforceable debt payable by 2nd respondent/accused. The prosecution of the 2nd respondent/accused under Section 138 of the Negotiable Instruments Act must necessarily fail - this Court is of the view that the 2nd respondent/accused has succeeded in rebutting the statutory presumption under Section 139 of the Negotiable Instruments Act - Appeal dismissed.
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