In Brief
An apple orchard owner supplied packing materials to a buyer on credit. Upon settlement of accounts in 2011, a cheque for Rs 5,38,856 was issued but dishonoured due to insufficient funds. The buyer denied issuing the cheque, claiming the signed cheque book was lost. The trial court and high court acquitted the buyer, citing discrepancies in the goods supplied quantity. The Supreme Court reversed the acquittal, holding that once a cheque is proved issued, statutory presumptions under the Negotiable Instruments Act shift the burden to the accused to rebut the presumption of consideration. Since the accused adduced no substantive evidence and merely denied misuse, the presumption stood unrebutted. The respondent was convicted and ordered to pay double the cheque amount as fine.
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