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    <title>2026 (5) TMI 193 - BOMBAY HIGH COURT</title>
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    <description>An appeal against acquittal under Section 138 of the Negotiable Instruments Act failed because the cheque was not shown to have been issued towards an existing enforceable debt or liability. The contract did not refer to the cheque, the instrument was treated as security, and the complainant gave inconsistent accounts about how it was obtained. Non-examination of the person said to have delivered the cheque justified an adverse inference, and the cheque was presented before the report relied on to show defective goods, so liability had not crystallised by presentation or dishonour. The trial court&#039;s view was a possible one and was not perverse or legally untenable, so interference was refused.</description>
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      <link>https://www.taxtmi.com/caselaws?id=790991</link>
      <description>An appeal against acquittal under Section 138 of the Negotiable Instruments Act failed because the cheque was not shown to have been issued towards an existing enforceable debt or liability. The contract did not refer to the cheque, the instrument was treated as security, and the complainant gave inconsistent accounts about how it was obtained. Non-examination of the person said to have delivered the cheque justified an adverse inference, and the cheque was presented before the report relied on to show defective goods, so liability had not crystallised by presentation or dishonour. The trial court&#039;s view was a possible one and was not perverse or legally untenable, so interference was refused.</description>
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