In Brief
The appellant issued a cheque for Rs. 5 lakhs, claimed by the complainant to be in repayment of a Rs. 15 lakh loan. The cheque was dishonoured. The appellant's defence was that he received blank cheques from the complainant (who held his power of attorney) for a purported housing loan, and one was misused without authorization. The trial court and first appellate court acquitted him. The High Court reversed the acquittal without detailed evidence analysis. The Supreme Court held that the appellant successfully rebutted the statutory presumption under Section 139 of the Negotiable Instruments Act through material inconsistencies in the complainant's testimony (varying loan amounts, absence of receipts, unidentified recipients). The appeal was allowed and the acquittal restored."
The lawyer headnote and full judgment text are available to registered users.