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Issues involved: Appeal against order of acquittal in a prosecution u/s 138 of the Negotiable Instruments Act based on conflicting interpretations of the legal requirements for dishonor of a cheque.
Summary: The appeal was filed by the complainant against the order of acquittal by the trial court in a case u/s 138 of the Negotiable Instruments Act. The complainant alleged that the accused issued a cheque in discharge of a debt, but the cheque bounced due to insufficient funds. The trial court acquitted the accused stating that the cheque did not represent a legally recoverable amount. The complainant argued that the cheque amount should be considered after deducting any payments made towards the liability. The defense cited a different judgment emphasizing that the cheque amount cannot exceed the liability incurred. There was a conflict in the interpretations of the law, leading to the decision that the appeal should be heard by a Division Bench for resolution. The matter was referred to the Chief Justice for further action.
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