Rebuttable statutory presumption under cheque dishonour law: complainant must prove legally enforceable debt when defence is raised.

In a prosecution under Section 138 of the Negotiable Instruments Act, the statutory presumption under Section 139 is rebuttable, and the complainant must still establish foundational facts showing that the cheque was issued towards a legally enforceable debt. The accused successfully raised a probable defence from the complainant's own evidence, including inconsistencies about financial capacity and the source of funds, and the absence of supporting documents such as a promissory note or receipt. As the complainant failed to prove repayment of a legally enforceable liability, leave to appeal against acquittal was declined and the acquittal was left undisturbed.

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Issues: Whether leave to appeal against the acquittal in a complaint under Section 138 of the Negotiable Instruments Act, 1881 should be granted.

Analysis: The complaint was based on a cheque allegedly issued towards repayment of a loan. The evidence revealed inconsistencies regarding the complainant's financial capacity and the source from which the alleged loan amount was raised. No supporting document such as a promissory note or receipt was produced to show payment of the loan. The accused was able to rebut the statutory presumption on the basis of the complainant's own evidence and surrounding circumstances. In a prosecution under Section 138, the presumption under Section 139 is rebuttable, and the complainant must still establish the foundational facts proving issuance of the cheque towards a legally enforceable debt.

Conclusion: Leave to appeal was declined because the complainant failed to establish that the cheque was issued in discharge of a legally enforceable debt, and the acquittal was found to be free from legal infirmity.

Final Conclusion: The challenge to the acquittal did not succeed, and the complainant was not permitted to pursue the appeal.

Ratio Decidendi: In a prosecution under Section 138 of the Negotiable Instruments Act, 1881, the statutory presumption under Section 139 is rebuttable, and once the accused creates a probable defence from the complainant's evidence, the complainant must prove the existence of a legally enforceable debt to sustain conviction.

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