Rebuttal of cheque presumptions under the NI Act: probable defence sustained acquittal in a Section 138 case.

In a prosecution under Section 138 of the Negotiable Instruments Act, the statutory presumptions under Sections 118 and 139 were held to be rebuttable on a preponderance of probabilities. The accused raised a probable defence that the cheque had been issued only as security for a different transaction, and the evidence also supported the defence case that the payee's name had been inserted in different ink and handwriting. The complainant's inconsistent evidence did not establish that the cheque was issued towards a legally enforceable debt owed to him. In an appeal against acquittal, the reinforced presumption of innocence remained relevant, and no basis was found to interfere with the acquittal.

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Issues: Whether the acquittal in a prosecution under Section 138 of the Negotiable Instruments Act, 1881 called for interference on the facts proved, particularly in the light of the statutory presumptions under Sections 118 and 139 of the said Act.

Analysis: The cheque was admitted, but the defence was able to raise a probable case that the cheque had been issued as security in connection with a different transaction and that the complainant had no clear or consistent case as to whether any amount was due to him personally. The evidence also supported the defence version that the payee's name had been inserted in a different ink and handwriting, while the complainant's own testimony failed to establish that the cheque was issued towards a legally enforceable debt owed to him. The presumption under Sections 118 and 139 is rebuttable, and the accused needed only to displace it on a preponderance of probabilities. In an appeal against acquittal, the reinforced presumption of innocence also had to be kept in view.

Conclusion: The accused successfully rebutted the statutory presumptions, and no ground was made out to interfere with the acquittal.

Ratio Decidendi: In a prosecution under Section 138 of the Negotiable Instruments Act, 1881, the accused may rebut the statutory presumptions by showing a probable defence on a preponderance of probabilities, and an appellate court will not interfere with an acquittal unless the finding is shown to be unsustainable.

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