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2022 (4) TMI 984 - HC - Indian LawsDishonor of Cheque - rebuttal of evidence - source of income/capacity to lend - stand of petitioner is that the respondent had no source of income to lend such a huge sum of ₹ 8,00,000/- to the petitioner - HELD THAT:- Honourable Supreme Court of India in TEDHI SINGH VERSUS NARAYAN DASS MAHANT [2022 (3) TMI 797 - SUPREME COURT] held that in the case under Section 138 of the Negotiable Instruments Act, the complainant need not show the first instance that he had capacity to lend the loan. The proceedings under Section 138 of the Negotiable Instruments Act is not a civil suit. At the time, when the complainant gives his evidence, unless a case is set up in the reply notice to the statutory notice sent, that the complainant did not have the wherewithal, it cannot be expected of the complainant to initially lead evidence to show that he had the financial capacity. To that extent, the Courts were right in held on those lines. The accused has the right to demonstrate that the complainant in a particular case did not have the capacity and therefore, the case of the accused is acceptable which he can do by producing independent material namely by examining his witnesses and producing documents. It is also open to him to establish the very same aspect by pointing to the materials produced by the complainant himself. He can further, more importantly, achieve this result through the cross-examination of the witnesses of the complainant. Ultimately it becomes the duty of the Courts to consider carefully and appreciate the totality of the evidence and then, come to a conclusion whether in the given case, the accused has shown that the case of the complainant is in peril for the reason that the accused has established a probable defence. The petitioner can very well examine his side witnesses to disprove the case of the respondent herein - Criminal Revision Case is allowed.
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