Negotiable Instruments Act presumption rebutted where probable defence and lack of proof of legally enforceable debt defeated conviction.

The accused rebutted the Section 139 presumption under the Negotiable Instruments Act by showing a probable defence that the cheque formed part of an earlier transaction, creating doubt about the alleged hand loan. The court applied the preponderance of probabilities standard and held that this burden had been discharged. Once the presumption was rebutted, the complainant had to prove a legally enforceable debt with acceptable evidence, but failed to produce supporting account books, vouchers, or other reliable proof. An adverse inference was drawn against the complainant, and the conviction under Section 138 could not be sustained.

---

---

Issues: Whether the accused rebutted the presumption under Section 139 of the Negotiable Instruments Act and whether the complainant proved the existence of a legally enforceable debt for the offence under Section 138 of the Negotiable Instruments Act.

Analysis: The accused admitted the cheque and therefore the statutory presumption arose. However, the court accepted the defence that the cheque was part of an earlier transaction and that materials on record, including account entries and surrounding circumstances, created a probable defence casting doubt on the complainant's version of a hand loan of Rs. 9,50,000/-. The accused was required only to rebut the presumption on a preponderance of probabilities, and that burden was found to have been discharged. Once the presumption stood rebutted, the burden shifted to the complainant to prove a legally enforceable debt by acceptable evidence. The complainant failed to produce supporting account books, vouchers, or other reliable proof of the alleged debt, and an adverse inference was drawn against him.

Conclusion: The presumption stood rebutted and the complainant failed to prove a legally enforceable debt; the conviction under Section 138 of the Negotiable Instruments Act could not be sustained.

---