The HC held that the presumption under Section 139 of the NI Act...

The HC held that the presumption under Section 139 of the NI Act extends to legally enforceable debts, including those arising from cheque transactions. However, this presumption can be rebutted by the accused through a probable defense on the preponderance of probabilities, creating doubt about the existence of such debt. Cash transactions exceeding Rs. 20,000 in violation of the Act 1961 do not constitute legally enforceable debts unless validly explained under Section 273B of the Act 1961. In the instant case, the complainant failed to provide any valid explanation for the cash payment and did not prove a legally enforceable debt. The accused successfully rebutted the presumption under Section 139 NI Act. Consequently, the convictions and sentences imposed by the lower courts were set aside, and the accused was acquitted. The criminal revision petition was allowed.