Statutory presumption for a signed cheque survives despite security cheque claims, but revision cannot directly turn acquittal into conviction.

A signed cheque voluntarily handed over by the drawer attracts the statutory presumptions under the Negotiable Instruments Act, and the presumption of liability remains unless the accused produces reliable evidence of repayment or of a different issuance date. A cheque described as blank, later filled by the payee, or issued as security does not by itself defeat liability where the underlying debt subsists. The appellate court's finding of material alteration was unsupported by evidence and treated as perverse. In revision, however, the High Court could not directly convert the acquittal into a conviction because of the bar under Section 401(3) CrPC, so the matter was remitted for fresh disposal.

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Issues: Whether the first appellate court was justified in holding that the cheque was not issued towards discharge of debt and had been materially altered, so as to rebut the statutory presumption and warrant acquittal.

Analysis: The cheque bore the drawer's admitted signature and had been physically handed over to the payee. The existence of business dealings and an outstanding liability stood proved from the account statement and the accused did not produce any reliable material to show repayment. In the absence of proof that the cheque was undated or that it was not issued on the date written on it, the presumption under the Negotiable Instruments Act as to the date and the liability attached to the signed cheque remained intact. A signed blank cheque, even if filled by the payee, does not by itself absolve liability, and a cheque given as security will still attract penal consequences if the underlying liability subsists. The first appellate court's conclusion of material alteration was held to be unsupported by evidence and perverse. However, in revision the High Court could not convert the acquittal into a conviction because of the statutory bar under Section 401(3) of the Code of Criminal Procedure, 1973.

Conclusion: The finding of the first appellate court was set aside as perverse, and the acquittal could not stand; the matter was remitted for fresh disposal of the appeal in accordance with law.

Ratio Decidendi: A signed cheque handed over by the drawer carries the statutory presumptions under the Negotiable Instruments Act, and a cheque issued as security or filled up by the payee does not escape liability where the underlying debt is subsisting; in revision, the High Court cannot directly convert an acquittal into a conviction and must remand where necessary.

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