https://www.taxtmi.com/caselaws?id=774207 A cheque attracts Section 138 of the Negotiable Instruments Act only if it is issued in discharge of an existing legally enforceable debt or liability. Although the signatures were admitted and the presumptions under Sections 118 and 139 arose, they were rebuttable on a preponderance of probability. The complainant failed to prove the alleged agreement to sell, the cash component of payment, or the full claimed liability of Rs. 1.5 crore; the evidence supported only a liability of Rs. 75 lakh. As the cheque exceeded the proved liability, it was not shown to have been issued for the existing debt, and the complaint was rightly dismissed. en-us Sat, 28 Jun 2025 00:00:00 +0530 Sat, 05 Jul 2025 08:47:31 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774207 A cheque attracts Section 138 of the Negotiable Instruments Act only if it is issued in discharge of an existing legally enforceable debt or liability. Although the signatures were admitted and the presumptions under Sections 118 and 139 arose, they were rebuttable on a preponderance of probability. The complainant failed to prove the alleged agreement to sell, the cash component of payment, or the full claimed liability of Rs. 1.5 crore; the evidence supported only a liability of Rs. 75 lakh. As the cheque exceeded the proved liability, it was not shown to have been issued for the existing debt, and the complaint was rightly dismissed. Case-Laws Indian Laws Sat, 28 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774207