In Brief
A man was convicted under Section 138 of the Negotiable Instruments Act for issuing a dishonoured cheque and sentenced to one year's imprisonment and compensation. He appealed, contending he had established a "probable defence" by examining bank officers to show the complainant lacked funds to make the loan. The Supreme Court held that while the presumption of consideration is rebuttable and the accused may raise a probable defence on the standard of preponderance of probabilities, he failed to do so effectively. He had not raised the defence in his statutory reply notice, made no complaint to the bank about the lost cheque, and admitted the friendly relationship. The Court upheld the conviction but substituted the imprisonment with a fine of Rs 5,000 and additional compensation of Rs 15,000.
The lawyer headnote and full judgment text are available to registered users.