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    <title>2015 (6) TMI 1131 - MADRAS HIGH COURT</title>
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    <description>Liability under Section 138 of the Negotiable Instruments Act depends on proof that the cheque was issued towards a legally enforceable debt or liability. The complainant failed to establish the underlying loan transaction and did not satisfactorily prove execution of the promissory note; the circumstances of execution were unclear, and the scribe or other supporting witness was not examined. Mere admission of signatures was held insufficient to prove execution of the document. On these facts, the statutory presumption was treated as rebutted, the prosecution case became doubtful, and the conviction and sentence under Section 138 were liable to be set aside.</description>
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    <pubDate>Tue, 09 Jun 2015 00:00:00 +0530</pubDate>
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      <title>2015 (6) TMI 1131 - MADRAS HIGH COURT</title>
      <link>https://www.taxtmi.com/caselaws?id=193654</link>
      <description>Liability under Section 138 of the Negotiable Instruments Act depends on proof that the cheque was issued towards a legally enforceable debt or liability. The complainant failed to establish the underlying loan transaction and did not satisfactorily prove execution of the promissory note; the circumstances of execution were unclear, and the scribe or other supporting witness was not examined. Mere admission of signatures was held insufficient to prove execution of the document. On these facts, the statutory presumption was treated as rebutted, the prosecution case became doubtful, and the conviction and sentence under Section 138 were liable to be set aside.</description>
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