Conviction under S.138 NI Act affirmed; lost cheque defence rejected; compensation under S.357(3) CrPC ordered reduced.

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....HC upheld the conviction of A1 for offence under S.138 NI Act, holding that the cheque dated 01.07.2014 was validly presented, that a legally enforceable debt stood proved, and that presumptions under Ss.118 and 139 NI Act were not rebutted. The "lost cheque" defence was rejected as improbable and unsupported by proper investigation or contemporaneous action. Alleged contradictions and objections on financial capacity were held immaterial in view of admitted signature and supporting financial records. The reliance on unproved attendance registers was discarded. The sentence of two years' simple imprisonment was affirmed as proportionate. However, the compensation of Rs.20,00,000/- under S.357(3) CrPC was held excessive in relation to the cheque amount and was directed to be suitably reduced, resulting in partial allowance of the revision.....