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        2019 (9) TMI 882 - HC - Indian Laws

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        Rebuttable presumption for signed cheques under cheque dishonour law defeated by probable defence and weak complainant evidence. A signed cheque attracts the presumption of liability under Section 139 of the Negotiable Instruments Act, 1881, even where the remaining particulars are ...
                      Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.

                          Rebuttable presumption for signed cheques under cheque dishonour law defeated by probable defence and weak complainant evidence.

                          A signed cheque attracts the presumption of liability under Section 139 of the Negotiable Instruments Act, 1881, even where the remaining particulars are filled later, but the presumption is rebuttable. The accused may displace it on a preponderance of probabilities through direct or circumstantial evidence, or by exposing weaknesses in the complainant's own version. Here, the defence of forcible taking of cheque leaves, supported by testimony and police complaints, together with inconsistencies in the complaint, notice, and proof of the underlying transaction, created a probable defence. The complainant therefore failed to establish the offence under Section 138 and the acquittal was left undisturbed.




                          Issues: Whether the complainant had proved execution of the cheque and the legally enforceable debt so as to warrant interference with the acquittal under Section 138 of the Negotiable Instruments Act, 1881.

                          Analysis: A signed cheque attracts the presumption under Section 139 of the Negotiable Instruments Act, 1881, even if the remaining particulars are filled in later, but the presumption is rebuttable. The accused may rebut it by direct evidence, circumstantial evidence, or by showing infirmities in the complainant's own case. In this case, the defence version that the cheque leaves were taken forcibly, the supporting testimony of DW1, the police complaints, and the weaknesses in the complaint and notice together created a probable defence. The complainant also failed to give a consistent and credible account of the underlying transaction and the issuance of the cheque.

                          Conclusion: The presumption stood rebutted and the complainant failed to prove the offence under Section 138 of the Negotiable Instruments Act, 1881. The acquittal required no interference.

                          Final Conclusion: The conviction threshold under the cheque dishonour law was not satisfied, and the accused was entitled to maintain the benefit of acquittal.

                          Ratio Decidendi: In a prosecution under Section 138 of the Negotiable Instruments Act, 1881, a signed cheque carries a rebuttable presumption of liability, but the accused may displace it on a preponderance of probabilities by relying on the complainant's own case and surrounding circumstances without entering the witness box.


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                          ActsIncome Tax
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