https://www.taxtmi.com/caselaws?id=304694 A cheque will not attract section 138 of the Negotiable Instruments Act if, after issuance, the parties readjust their obligations and the cheque no longer represents a subsisting debt or liability on the relevant date. The statutory presumptions under sections 118 and 139 are rebuttable, and can be displaced by defence evidence showing instalment payments, accepted interest, and a failed loan arrangement that altered the original transaction. On the facts stated, the cheque was not in discharge of any live liability when presented, so prosecution under section 138 could not succeed and the acquittal was upheld. en-us Thu, 06 Apr 2000 00:00:00 +0530 Sat, 15 Oct 2022 12:45:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=304694 A cheque will not attract section 138 of the Negotiable Instruments Act if, after issuance, the parties readjust their obligations and the cheque no longer represents a subsisting debt or liability on the relevant date. The statutory presumptions under sections 118 and 139 are rebuttable, and can be displaced by defence evidence showing instalment payments, accepted interest, and a failed loan arrangement that altered the original transaction. On the facts stated, the cheque was not in discharge of any live liability when presented, so prosecution under section 138 could not succeed and the acquittal was upheld. Case-Laws Indian Laws Thu, 06 Apr 2000 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=304694