TaxTMI Login
AI Drafter ✕
Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Just a moment...
AI Drafter ✕ Generate professional replies, appeals, opinions to Show Cause Notices, assessment orders, audit objections, and other legal communications using TaxTMI's AI Drafter.
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the cheque was issued towards discharge of a legally enforceable debt or liability and whether the statutory presumptions under the Negotiable Instruments Act stood rebutted.
Analysis: In a prosecution under Section 138, once the complainant proves the drawing of the cheque, its dishonour and service of notice with non-payment, the presumptions under Sections 118 and 139 arise in favour of the holder. Those presumptions are rebuttable, but the accused must bring on record material making the non-existence of debt or liability reasonably probable; a bare denial is insufficient. On the facts, the complainant's evidence of a hand loan of Rs. 45,000, the dishonoured cheque, and the failure of the accused to reply to the demand notice or take immediate steps against the alleged misuse of the cheque supported the complainant's version. The defence did not adduce satisfactory evidence to displace the statutory presumptions on a preponderance of probabilities.
Conclusion: The cheque was held to have been issued for discharge of a legally enforceable debt, the statutory presumptions were not rebutted, and the acquittal was set aside by convicting the accused under Section 138.
Ratio Decidendi: In a cheque dishonour prosecution, once foundational facts are proved, the presumptions under Sections 118 and 139 operate in favour of the complainant and can be displaced only by probable evidence showing that no legally enforceable debt or liability existed.
TaxTMI 
