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Issues: (i) Whether the cheques were issued in discharge of a legally enforceable debt or liability so as to sustain convictions under section 138 of the Negotiable Instruments Act. (ii) Whether the acquittal recorded by the trial court called for interference in appeal.
Issue (i): Whether the cheques were issued in discharge of a legally enforceable debt or liability so as to sustain convictions under section 138 of the Negotiable Instruments Act.
Analysis: The evidence and surrounding circumstances created serious doubt about the complainant's version. The cheques bore consecutive numbers despite being stated to have been issued more than a year apart, the earlier dishonour notice did not mention the later alleged loan, and the handwriting expert could not give a definite opinion on the disputed writings. The Court also accepted the trial court's view that the transactions appeared to be part of an unlicensed money-lending arrangement, making the claimed debt not legally recoverable.
Conclusion: The cheques were not shown to have been issued towards a legally enforceable debt or liability, and the acquittal on that basis was upheld.
Issue (ii): Whether the acquittal recorded by the trial court called for interference in appeal.
Analysis: In an appeal against acquittal, interference is not warranted where the trial court's assessment is a possible view on the evidence. The trial court had appreciated the oral and documentary evidence and drawn conclusions supported by suspicious features in the complainant's case. That view could not be treated as unreasonable or illegal.
Conclusion: No interference with the acquittal was justified.
Final Conclusion: The complaints under section 138 failed, and the acquittal was maintained because the trial court's view remained a sustainable one on the evidence.
Ratio Decidendi: In an appeal against acquittal, the appellate court will not interfere if the trial court's conclusion is a possible view, and a conviction under section 138 requires proof that the cheque was issued for a legally enforceable debt or liability.