KAMALA S. vs VIDYADHARAN M.J.

The Supreme Court held that under Section 138 of the Negotiable Instruments Act, 1881, the presumption of dishonor due to insufficient funds can be rebutted by the accused if a plausible defense is presented. In this case, the appellant successfully demonstrated that the cheque was issued not for a loan but as a security for a property transaction, thus discharging the presumption under Section 142. The Court upheld the lower court's finding that the complainant failed to prove the debt, resulting in the acquittal of the appellant.