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2018 (8) TMI 828 - HC - Indian LawsDishonor of Cheque - insufficiency of funds - only contention urged by the accused in the course of the trial is that the said cheque was handed over by him to the complainant in some other transaction and the same has been misused by the complainant to lay a false claim against him - Held that:- The reasoning assigned by the trial Court that there was no subsisting debt in respect of which the accused could have issued the cheque is liable to be set aside. Moreover, in the instant case, the complainant has produced the covering letter Ex.P.5 which clearly establishes that the accused has taken over the liability of the aforesaid Satyappa Vantigodi and in repayment of the said liability he has issued the said cheque. By taking over the said liability the accused has stepped into the shoes of the guarantor and therefore, even on that score the accused is liable to honor the said cheque. The subject cheque having been dishonored for want of insufficiency of fund, the accused has rendered himself liable for conviction under Section 138 of N.I. Act - The contra finding recorded by the trial Court being opposed to the provisions of Section 138 of the N.I. Act and the material on record cannot be sustained. It would be just and appropriate to sentence the accused to pay the fine amounting to twice the amount of the cheque i.e. ₹ 2,72,468/-. Appeal allowed.
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