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2017 (8) TMI 1078 - HC - Indian LawsConviction under Section 138 of the Negotiable Instruments Act - legally enforceable debt - Held that:- In a trial under Section 138 of the Negotiable Instruments Act, a presumption has to be drawn that every negotiable instrument was made or drawn for consideration and that it was executed for discharge of debt or liability. No sooner the complainant discharges the burden to prove that the instrument was executed by the accused, the rules of presumption under Section 118 and 139 of the Act would ensure that the burden to prove to the contrary would be on the accused. The presumption will survive till the time the contrary is proved by the accused i.e. the cheque was not issued for consideration and in discharge of any debt or liability. Even though the respondent has not led any evidence but the statutory presumption in favour of the appellant/complainant stands rebutted because of the inconsistent plea of the appellant/complainant. The lower Appellate Court rightly took into account the aforesaid facts and additionally the claim of the respondent that he had lost some leaves of the cheque book including the subject cheque and for which a complaint also was lodged earlier. The Lower Appellate Court was absolutely justified in holding that the complainant could not prove her case regarding the existence of any legally enforceable debt against the respondent.
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