In Brief
A property purchase dispute led to a cheque dishonour. The appellant sought recovery of a Rs 3.5 lakh advance after learning the seller (respondent) lacked authority to transfer the property. The respondent issued a cheque for Rs 1.5 lakh, which was dishonoured for insufficient funds. The trial court convicted the respondent under Section 138 of the Negotiable Instruments Act, but the High Court set aside the conviction. The Supreme Court restored the conviction, holding that the admitted signature on the cheque raised a presumption of liability, which the respondent failed to rebut with his late defence. The Court modified the sentence to enhanced fine (Rs 2.5 lakh) with compensation (Rs 2.4 lakh) instead of imprisonment, considering the non-commercial nature of the transaction and the 25+ years elapsed since the incident."
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