In Brief
A foreign exchange services company issued travel currency cards to buyers who later defaulted. The buyers issued cheques totalling Rs. 9,55,574 (first case) and Rs. 4,00,000 (second case), but both were dishonoured. The trial court and high court acquitted the accused, finding no established legal liability. The Supreme Court reversed the acquittal, holding that once an accused admits issuing a cheque and bearing his signature, Section 139 of the Negotiable Instruments Act presumes a legally enforceable debt. This presumption is rebuttable only if the accused leads affirmative evidence of payment. Mere denial is insufficient. The appeals were allowed, the accused convicted under Section 138, and ordered to pay compensation.
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