BASALINGAPPA vs MUDIBASAPPA

The Supreme Court upheld the conviction of the accused under Section 138 of the Negotiable Instruments Act, 1881, affirming the High Court's decision that the accused failed to prove a legally enforceable debt despite raising a probable defense. The Court emphasized that the presumption under Section 139 of the Act was not successfully rebutted by the accused, leading to the conclusion that the dishonor of the cheque was due to insufficient funds. The appeal was dismissed, and the conviction and sentence of fine of Rs. 8,00,000/- were upheld.