In Brief
The Supreme Court reversed the High Court's conviction in a cheque dishonour case under Section 138 of the Negotiable Instruments Act. Although the accused admitted the cheque's signature, the Court held he raised a probable defence by showing the complainant had limited financial capacity. The complainant had paid out Rs. 18 lakhs to various persons within two years despite receiving only Rs. 8 lakhs as retirement benefits in 1997. Additionally, contradictions existed between the complaint and cross-examination regarding when the loan was given (November 2011 vs. cheque date of 27 February 2012). The Court held the trial court's acquittal was not perverse and restored it, emphasizing that an accused need only raise a probable defence using a preponderance of probabilities standard, not prove his innocence beyond reasonable doubt.
The lawyer headnote and full judgment text are available to registered users.