Cheque Dishonour Case: Presumptions Under NI Act Sections 118(a) and 139 Successfully Rebutted By Security Deposit Evidence

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....The HC dismissed a petition seeking leave to appeal against an acquittal in a cheque dishonour case. Despite admitted execution of the cheque, the court found the statutory presumptions under Sections 118(a) and 139 of the NI Act had been properly rebutted by the respondent on a preponderance of probabilities. The respondent successfully established that the cheque was given only as security for a smaller sum (1,65,000) rather than for the full amount. The petitioner failed to demonstrate financial capacity to have advanced the alleged 10 lakh loan, with no supporting documentation or income tax returns reflecting such transaction. Following precedent in Sri Dattatraya v. Sharanappa, the HC found no perversity in the trial court's reasoning warranting interference.....