Legally enforceable debt not proved in cheque dishonour complaint; acquittal stood and leave to appeal was refused.

In a complaint under Section 138 of the Negotiable Instruments Act, leave to appeal against acquittal was refused because the complainant failed to prove a legally enforceable debt. The alleged loan was based on Bahi entries and incomplete accounts, which did not satisfactorily establish advancement of money, the basis of liability, or the outstanding balance. The complainant also admitted money-lending without the licence required under the Punjab Registration of Money-lenders Act, 1938, so recovery of the loan could not be enforced in the manner claimed. The acquittal was not shown to be illegal, perverse, or without jurisdiction.

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Issues: Whether leave to appeal against acquittal in a complaint under Section 138 of the Negotiable Instruments Act, 1881 should be granted where the complainant failed to establish a legally enforceable debt and also lacked a valid money-lending licence.

Analysis: Interference with an acquittal is warranted only for very substantial and compelling reasons, and two possible views must ordinarily favour the accused. The alleged loan rested on Bahi entries and incomplete account material, which did not satisfactorily prove the advancement of money, the mode of calculation of liability, or the outstanding balance. Such entries were treated as insufficient by themselves to prove an enforceable liability. The complainant also admitted carrying on money-lending activity without the licence contemplated by the Punjab Registration of Money-lenders Act, 1938, and the statutory bar under that Act meant that recovery of such a loan could not be enforced in the manner sought. On these facts, the cheque was not shown to have been issued towards a legally enforceable debt or liability.

Conclusion: The acquittal was not shown to be illegal, perverse, or without jurisdiction, and no ground for appellate interference was made out. Leave to appeal was therefore refused.

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