Acquittal of an accused in a dishonour of cheque case under Section 138 of the Negotiable Instruments Act, 1881 can occur due to various legal, factual, and procedural grounds. Here’s a brief summary explaining when and why such acquittals happen:

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⚖️ Grounds for Acquittal in Dishonour of Cheque Cases (Section 138 NI Act)

1. No Legally Enforceable Debt or Liability

The cheque must be issued in discharge of a legally enforceable debt or liability.

If the complainant fails to prove the existence of such a debt, the accused is acquitted.

Example: If the cheque was issued as a gift, loan for future, or security, Section 138 does not apply.