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Presumption under the Negotiable Instruments Act that a cheque was issued for discharge of debt was drawn in favour of the holder on admission of signature, and the accused failed to rebut the rebuttable presumptions under sections 118 and 139 by only raising a probable defence on preponderance of probabilities; consequently the High Court set aside the magistrate's acquittal and convicted the accused for dishonour of cheque under section 138. The court held that filling of particulars in a signed blank cheque by a third party was immaterial, imposed a fine (with default imprisonment) and directed compensation to the complainant under criminal procedure.
Presumption under the Negotiable Instruments Act that a cheque was issued for discharge of debt was drawn in favour of the holder on admission of signature, and the accused failed to rebut the rebuttable presumptions under sections 118 and 139 by only raising a probable defence on preponderance of probabilities; consequently the High Court set aside the magistrate's acquittal and convicted the accused for dishonour of cheque under section 138. The court held that filling of particulars in a signed blank cheque by a third party was immaterial, imposed a fine (with default imprisonment) and directed compensation to the complainant under criminal procedure.
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