Cheque presumptions survive cash-loan restrictions, while rebuttal requires cogent evidence and overlooked lending-capacity evidence warrants fresh consideration.

An admitted cheque triggers presumptions of consideration and legally enforceable liability under the Negotiable Instruments Act. A cash-loan breach of Section 269SS attracts penalty under Section 271D but does not itself invalidate the underlying transaction, render the debt unenforceable, or rebut those presumptions. The drawer must rebut the presumptions through a cogent, supported explanation; bare denial is insufficient, while evidence that the payee lacked lending capacity may assist. Where evidence on the complainant's financial capacity was not properly evaluated, remand for fresh consideration is justified, requiring the trial court to reconsider the complaint under the applicable presumptions and evidentiary burden.

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Issues: (i) Whether a cash loan transaction allegedly violating Section 269SS affects the statutory presumptions and enforceability of liability under the cheque-dishonour provisions; (ii) Whether remand for fresh consideration was justified where execution of the cheques was admitted and the trial court had not properly assessed the evidence relevant to rebuttal of the presumptions.

Issue (i): Whether a cash loan transaction allegedly violating Section 269SS affects the statutory presumptions and enforceability of liability under the cheque-dishonour provisions.

Analysis: Admission of execution of a cheque raises the presumption of consideration and the presumption that the holder received it towards a legally enforceable debt or liability. A breach of Section 269SS attracts the stipulated penalty under Section 271D, but neither provision declares the underlying transaction illegal, invalid, or void. Such breach therefore does not, by itself, make the debt unenforceable or dislodge the statutory presumptions.

Conclusion: A cash transaction exceeding the prescribed limit does not by itself render the debt unenforceable or rebut the presumptions under the Negotiable Instruments Act; the issue is against the accused-appellant.

Issue (ii): Whether remand for fresh consideration was justified where execution of the cheques was admitted and the trial court had not properly assessed the evidence relevant to rebuttal of the presumptions.

Analysis: The presumption in favour of the holder is rebuttable, but a bare denial is insufficient. The drawer must furnish an explanation, supported by cogent material, regarding the issuance of the cheque and its possession by the payee. Proof that the payee lacked financial capacity may assist rebuttal. The record indicated that evidence regarding the complainant's capacity to lend had been adduced but was not properly evaluated. As the challenged order was a remand order, appreciation of the evidence on merits was inappropriate.

Conclusion: The remand for a fresh decision after proper consideration of the evidence was justified; the issue is against the accused-appellant.

Final Conclusion: The trial court must expeditiously reconsider the complaint in accordance with the applicable presumptions and the evidentiary burden of rebuttal.

Ratio Decidendi: Violation of a fiscal restriction on cash loans, where it attracts only a statutory penalty and does not invalidate the transaction, cannot by itself defeat the presumptions of consideration and legally enforceable liability arising from an admitted cheque.

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