Chequed dishonour complaint survives proof of unpaid debt, and money-lender bar does not defeat the criminal remedy.

A complaint under Section 138 of the Negotiable Instruments Act was maintainable where issuance of a cheque towards an unpaid debt was established and the dishonour was followed by non-payment after notice. The evidence did not support the claimed loan of Rs. 10.40 lakh, but it did show at least Rs. 3 lakh had been paid to the accused and remained unpaid. The alleged repayment was not proved because the diary relied on was not shown to bear the complainant's signature. The money-lender objection also failed, as Section 3 of the Punjab Registration of Money Lenders' Act, 1938 was held to govern civil recovery suits, not to bar the criminal remedy under Section 138.

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Issues: Whether the complainant had proved a legally enforceable debt or liability to sustain conviction under Section 138 of the Negotiable Instruments Act, 1881, and whether the complainant's alleged status as a money lender barred the complaint.

Analysis: The evidence did not support the complainant's assertion that a loan of Rs. 10.40 lakh had been advanced, but it did establish that at least Rs. 3 lakh had been paid to the respondent and remained unpaid. The respondent's alleged repayment was not proved, as the diary relied upon was not shown to bear the complainant's signature. The Court also held that even if the complainant was engaged in lending money, Section 3 of the Punjab Registration of Money Lenders' Act, 1938, governed civil suits for recovery of loans and did not bar a criminal complaint under Section 138 of the Negotiable Instruments Act, 1881, where a cheque issued in discharge of a debt is dishonoured and payment is not made after notice.

Conclusion: The conviction under Section 138 was restored, the acquittal was set aside, and the respondent was held liable to fine in default of payment.

Final Conclusion: The appeals succeeded, the acquittal was reversed, and the respondent's conviction and sentence under the cheque dishonour law were affirmed in substance.

Ratio Decidendi: A complaint under Section 138 of the Negotiable Instruments Act, 1881 is maintainable where issuance of a cheque towards an unpaid debt is established, and the bar applicable to unregistered money lenders in civil recovery actions does not defeat the criminal remedy.

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