K.N. BEENA vs MUNIYAPPAN

The Supreme Court held that under Sections 118 and 139 of the Negotiable Instruments Act, there is a presumption that a cheque is issued for consideration and for the discharge of a debt or liability, which is rebuttable. The Court found that the High Court erred in shifting the burden of proof to the complainant, as the accused failed to provide evidence to prove that the cheque was not issued for a debt. Consequently, the Supreme Court reinstated the conviction and sentence imposed by the Magistrate, setting aside the High Court's acquittal.