In Brief
Basalingappa was accused of issuing a bounced cheque for Rs. 6 lakhs. The trial court acquitted him, finding the complainant had not proven his financial capacity to lend such a sum. The High Court reversed this, convicting him. The Supreme Court allowed the appeal and restored the acquittal. The Court held that once cheque execution is admitted, a presumption arises that it discharges a debt, but this is rebuttable. The accused successfully raised a probable defence by showing evidence of the complainant's multiple large transactions (Rs. 18 lakhs in two years) against only Rs. 8 lakhs in retirement benefits, and contradictions in the complainant's statements about when the loan was given. The complainant therefore bore the burden to prove financial capacity, which was not satisfactorily done."
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