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2021 (6) TMI 995 - HC - Indian LawsDishonor of Cheque - acquittal of the accused - legally enforceable liability or not - rebuttal of presumption - Sections 118 and 139 of the Act - HELD THAT:- It is trite that merely for the reason that the accused had admitted his signature on a negotiable instrument, its execution cannot be assumed. In order to draw the presumptions under Sections 118 and 139 of the Act, either the execution of the cheque should be admitted or it has to be proved that it was executed and issued in discharge of a legally enforceable liability. Here the first respondent does not admit the execution of the cheque. A perusal of Ext. P9 shows that the actual consideration of the vehicle was ₹ 33,900/-. It is evident from Ext. P10 also. The margin money was ₹ 6,800/-. The loan amount, that is the amount actually lent by the appellant, was ₹ 27,100/-. So the total amount found payable by the first respondent was ₹ 39,295/- which includes FC amount, may be financial credit amount, of ₹ 12,195/-. The first respondent was liable to pay a total amount of ₹ 39,295/- in 36 instalments at the rate of ₹ 1092/-. The documents produced by the parties indicate that the first respondent was never regular in repayment of the amount. However, at least in alternate months he has paid amounts. Till 17.07.2007, though intermittently, he paid an amount of ₹ 16,433/-, which includes the defaulted instalment interest. But the last remittance has not been reckoned by the appellant. Secondly, ₹ 12,195/- shown payable by the first respondent includes interest for the entire period of 36 months, during the period of the entire hire purchase agreement. There is substance in the finding of the trial court that it was not supported by consideration and therefore the appellant is not entitled to draw the presumptions under Sections 118 and 139 of the Act - it is obvious that sufficient reasons are not made out by the appellant to interfere with the judgment under attack - Appeal dismissed.
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