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The HC upheld the conviction under Section 138 of the NI Act for dishonour of a cheque due to insufficient funds. The accused did not dispute the signature but claimed the cheque was security for a loan; however, the court held the presumption of discharge of legal liability stood unrebutted. The accused, as principal debtor, was liable, and action against the guarantor was unnecessary. The complainant proved issuance, dishonour, notice, and non-payment beyond reasonable doubt. The sentence of three months' imprisonment and Rs. 20,000/- compensation on a principal amount of Rs. 60,000/- was deemed appropriate and not excessive. The revision petition was dismissed, affirming the trial court's findings and sentencing.
The HC upheld the conviction under Section 138 of the NI Act for dishonour of a cheque due to insufficient funds. The accused did not dispute the signature but claimed the cheque was security for a loan; however, the court held the presumption of discharge of legal liability stood unrebutted. The accused, as principal debtor, was liable, and action against the guarantor was unnecessary. The complainant proved issuance, dishonour, notice, and non-payment beyond reasonable doubt. The sentence of three months' imprisonment and Rs. 20,000/- compensation on a principal amount of Rs. 60,000/- was deemed appropriate and not excessive. The revision petition was dismissed, affirming the trial court's findings and sentencing.
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