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of <h1>High Court overturns acquittal, restores conviction in Section 138 case. Accused faces fine or imprisonment.</h1> <h3>NEDUMANGAD HOUSING CO-OPERATIVE SOCIETY LTD. Versus STATE OF KERALA, G. LAL</h3> NEDUMANGAD HOUSING CO-OPERATIVE SOCIETY LTD. Versus STATE OF KERALA, G. LAL - TMI Issues:Appeal against judgment of Sessions Judge acquitting the accused in a case under Section 138 of the Negotiable Instruments Act.Analysis:1. Background and Allegations: The case involves a complaint by a Housing Co-operative Society against the accused for issuing a bounced cheque. The accused failed to repay the amount, leading to the complaint under Section 138 of the Negotiable Instruments Act.2. Trial Court Proceedings: The trial court found the accused guilty based on evidence presented by the appellant, leading to a conviction and sentence. The accused challenged this in the Sessions Court, which acquitted him, prompting the appellant to appeal to the High Court.3. Appellant's Arguments: The appellant argued that the accused failed to rebut the presumptions under Sections 118(a) and 139 of the Act. The appellant presented evidence supporting the issuance of the cheque and the failure of the accused to repay the amount, as per the scheme agreement.4. Respondent's Arguments: The respondent contended that inconsistencies in witness testimonies and the lack of proof of entitlement to draw presumptions under the Act should lead to dismissal of the appeal. The respondent emphasized the standard of proof required in such cases.5. High Court Judgment: The High Court reviewed the trial court and Sessions Court judgments. The High Court found that the appellant had sufficiently proven the case, including the issuance of the cheque and the failure of the accused to repay the amount. The High Court disagreed with the Sessions Judge's reasoning and restored the conviction, sentencing the accused to pay a fine or face imprisonment.6. Legal Principles: The High Court relied on legal precedents, including the importance of proving transactions in cheque bounce cases and the presumptions available under the Act. The High Court emphasized the burden on the accused to rebut these presumptions effectively.7. Conclusion: The High Court allowed the appeal, overturning the Sessions Judge's acquittal and restoring the trial court's conviction. The accused was sentenced to pay a fine or face imprisonment, based on the evidence and legal principles presented in the case.This detailed analysis highlights the legal arguments, evidentiary considerations, and the High Court's decision in the appeal against the acquittal in a case under Section 138 of the Negotiable Instruments Act.
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