In Brief
A fabric manufacturer issued cheques to pay for non-woven fabric supplied by a complainant. The cheques were dishonored due to insufficient funds, and despite statutory notice, the appellant made no payment. The trial court acquitted her, but the High Court reversed the acquittal and convicted her under Section 138 of the Negotiable Instruments Act. The Supreme Court upheld the conviction, holding that once basic dishonor elements are proven, a statutory presumption arises that the cheque was for valid liability. The appellant must rebut this on preponderance of probabilities by adducing affirmative facts, not merely denying the claim. Here, the complainant proved delivery of goods and the appellant offered no substantive rebuttal. The appeals were dismissed.
The lawyer headnote and full judgment text are available to registered users.