Presumption under the Negotiable Instruments Act is rebuttable on probabilities when financial capacity is not proved, leaving acquittal undisturbed.

In a prosecution under Section 138 of the Negotiable Instruments Act, the complainant's failure to prove financial capacity to advance the alleged loan justified the rebuttal of the Section 139 presumption on a preponderance of probabilities. The Court noted that the claimed source of funds from the complainant's mother was unsupported because she was not examined, and the alleged sale transaction said to fund the loan had been cancelled. A prior Section 138 proceeding also showed failure to produce income documents. As the accused raised a probable defence from the complainant's own materials and the concurrent findings were not shown to be infirm, interference with the acquittal was not warranted.

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Issues: Whether interference was warranted with the acquittal in a prosecution under Section 138 of the Negotiable Instruments Act, 1881, when the complainant failed to establish financial capacity to advance the loan and the accused raised a probable defence.

Analysis: The complainant's asserted source of funds was a loan allegedly taken from his mother, but she was not examined as a witness. The alleged supporting sale transaction had also been cancelled, leaving the asserted availability of funds unsubstantiated. The record further indicated another proceeding under Section 138 of the Negotiable Instruments Act, 1881 in which the complainant had failed to produce income documents. In light of the settled rule that the presumption under Section 139 of the Negotiable Instruments Act, 1881 can be rebutted on a preponderance of probabilities by relying on the complainant's own materials, the concurrent findings that the complainant failed to prove financial capacity were not shown to be infirm.

Conclusion: No interference with the acquittal was called for, and the appeal failed.

Ratio Decidendi: The presumption under Section 139 of the Negotiable Instruments Act, 1881 stands rebuttable on a preponderance of probabilities, including by reliance on the complainant's own materials, and an acquittal under Section 138 will not be disturbed absent infirmity in the concurrent findings.

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