The HC dismissed a criminal appeal under Section 138 of the...

The HC dismissed a criminal appeal under Section 138 of the Negotiable Instruments Act, confirming the accused's acquittal. The complainant alleged dishonour of a cheque issued for losses under a terminated MOU between partnership firms. The HC found the statutory presumption of legally enforceable debt was successfully rebutted by the accused, who demonstrated the cheque was obtained under coercion. The MOU lacked provisions for loss calculation, contained no arbitration clause, and was unilaterally terminated. The complainant failed to prove actual loss, its quantification, or proper assessment. The accused's cross-examination of witnesses and documentary evidence established the cheque was not issued in discharge of any legally enforceable liability, warranting dismissal of charges.

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