https://www.taxtmi.com/caselaws?id=774627 In a cheque dishonour prosecution, admitted cheques and signatures attracted the presumptions under Sections 118 and 139 of the Negotiable Instruments Act, 1881, but the accused rebutted them by showing a probable defence on a preponderance of probabilities. The complainant's financial capacity was supported by bank records, yet the alleged cash loan remained doubtful because the supporting undertakings were not produced, the payment circumstances were improbable, the transaction was not reflected in income-tax returns, and part repayment was not satisfactorily proved. The defence that the cheques were earlier security cheques issued in connection with a chit fund was found plausible, so the complainant failed to establish a legally enforceable debt and the dismissal of the complaint was upheld. en-us Mon, 30 Jun 2025 00:00:00 +0530 Sat, 12 Jul 2025 08:40:46 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774627 In a cheque dishonour prosecution, admitted cheques and signatures attracted the presumptions under Sections 118 and 139 of the Negotiable Instruments Act, 1881, but the accused rebutted them by showing a probable defence on a preponderance of probabilities. The complainant's financial capacity was supported by bank records, yet the alleged cash loan remained doubtful because the supporting undertakings were not produced, the payment circumstances were improbable, the transaction was not reflected in income-tax returns, and part repayment was not satisfactorily proved. The defence that the cheques were earlier security cheques issued in connection with a chit fund was found plausible, so the complainant failed to establish a legally enforceable debt and the dismissal of the complaint was upheld. Case-Laws Indian Laws Mon, 30 Jun 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774627