Statutory presumptions in cheque dishonour appeals must be considered before refusing leave against acquittal.

In cheque dishonour acquittal matters, the appellate court must assess the request for leave to appeal in light of the statutory presumptions under Sections 118 and 139 of the Negotiable Instruments Act, 1881 and their effect on the evidence. Where the High Court declines leave without considering those presumptions, the refusal is unsustainable because the matter requires merits-based appellate scrutiny. The leave refusal was set aside, leave to appeal was granted, and the challenge to acquittal was remitted to the High Court for decision on merits, with priority directed due to long pendency.

---

---

Issues: Whether the High Court was justified in refusing leave to appeal against acquittal in a cheque dishonour prosecution without considering the statutory presumptions under the Negotiable Instruments Act.

Analysis: The complaint arose from dishonour of a cheque alleged to have been issued towards an existing liability under a del credere arrangement. The Trial Court acquitted the accused, and the High Court declined leave to appeal. In examining the refusal of leave, the Court noted that the High Court ought to have considered the effect of the statutory presumptions under Sections 118 and 139 of the Negotiable Instruments Act, 1881 on the evidence led by the parties. Since the High Court had not examined that aspect, and the matter required a merits-based consideration by the appellate court, the refusal to grant leave could not be sustained.

Conclusion: The refusal of leave to appeal was set aside and leave to appeal was granted, with the matter remitted to the High Court for decision on merits.

Final Conclusion: The acquittal challenge was restored before the High Court for a fresh merits-based consideration, with priority directed in view of the long pendency.

Ratio Decidendi: In a cheque dishonour acquittal appeal, the court considering leave must evaluate the matter in light of the statutory presumptions under Sections 118 and 139 of the Negotiable Instruments Act, 1881 and cannot refuse leave without addressing their effect on the evidence.

---