In Brief
A man loaned Rs. 22 lakhs to another and received a cheque for that amount, which was dishonoured. The Trial and Appellate Courts convicted the cheque drawer for violating Section 138 of the Negotiable Instruments Act (cheque dishonour). The High Court, however, acquitted him, finding that the complainant failed to prove the source of the loan funds. The Supreme Court reversed this, holding that the complainant need not initially prove his financial capacity to advance a loan—only if the accused specifically raises such objection must the complainant provide evidence. The Court emphasised that once a genuine cheque is dishonoured with proper notice, statutory presumption favours the complainant, and the accused must rebut it with concrete evidence, not mere denials. The conviction was restored with a modified sentence of fine only.
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