HC overturned acquittal under Section 138 of Negotiable...

HC overturned acquittal under Section 138 of Negotiable Instruments Act, finding Magistrate misapplied statutory presumptions under Sections 118(a) and 139. Respondent failed to rebut presumption that cheques were issued for consideration and to discharge debt. Defense claim of cheques being mere security was invalidated by documented admission of Rs. 94 lacs debt in Minutes of Meeting and subsequent letter, justifying encashment of Rs. 30 lacs cheques as partial payment. Magistrate erred in requiring complainant to establish legally enforceable debt despite clear statutory presumptions. Appeal allowed, setting aside dismissal of criminal complaints.