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Issues: Whether the applicant rebutted the statutory presumptions under the Negotiable Instruments Act and showed that the findings of guilt under Section 138 were unsustainable.
Analysis: The respondent's evidence was found sufficient to establish advancement of the amount and the issuance and dishonour of the cheque. The applicant did not place any reliable material on record to displace the presumption under Section 139 of the Negotiable Instruments Act. The plea that the respondent lacked financial capacity was treated as a bare assertion and the statutory requirements under Section 138 were held to have been complied with. The burden on the accused is one of rebuttal on a preponderance of probability, and that burden was not discharged.
Conclusion: The challenge to the conviction failed and the finding of liability under Section 138 was sustained.
Final Conclusion: The revision was rejected, and the conviction and sentence recorded by the courts below were left undisturbed.
Ratio Decidendi: A cheque dishonour conviction stands where the statutory presumption is not rebutted by credible evidence and the accused fails to show a probable defence displacing liability.