In Brief
A woman's ₹50 crore escrow cheque from a mediator was dishonored. She filed a criminal complaint under the Negotiable Instruments Act alleging unlawful cheque dishonor. The lower courts dismissed the complaint, finding no legally enforceable debt since the underlying settlement agreement was unsigned by the mediator. The Supreme Court reversed this, holding that once a cheque's issuance and signature are undisputed, the statutory presumption of debt arises automatically. Defenses about the debt's legality must be proven at trial, not dismissed beforehand. The Court restored the complaint for trial on merits.
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