Statutory presumptions for cheque dishonour remain unless the accused raises a probable defence on preponderance of probabilities.

Admitted issuance of a cheque and the drawer's signatures on it trigger the statutory presumptions under Sections 118 and 139 of the Negotiable Instruments Act, shifting the burden to the accused to raise a probable defence on a preponderance of probabilities. A bare explanation that the cheque was given as security to a third person is insufficient unless it credibly accounts for how the cheque reached the complainant and creates doubt about a legally enforceable liability. Where the complainant's evidence remains consistent on advancement of money, dishonour, and service of notice, the defence may fail to displace the presumption.

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Issues: Whether the conviction under Section 138 of the Negotiable Instruments Act, 1881 was liable to be set aside in revision on the ground that the accused had rebutted the statutory presumption arising from admitted issuance of the cheque and his signatures thereon.

Analysis: The accused admitted that the cheque and his signatures were his, though he sought to explain that the cheque had been given to a third person as security. Once issuance of the cheque and signatures were admitted, the presumptions under Sections 118 and 139 of the Negotiable Instruments Act, 1881 came into operation. The burden then shifted to the accused to raise a probable defence on a preponderance of probabilities. The complainant's evidence remained consistent and established advancement of money, issuance of the cheque, dishonour on presentation, and service of notice. The defence version did not create any credible doubt about the existence of a legally enforceable liability, nor did it explain how the cheque reached the complainant. The concurrent findings of the courts below were, therefore, supported by the record.

Conclusion: The presumption was not rebutted and the conviction under Section 138 of the Negotiable Instruments Act, 1881 was rightly upheld against the accused.

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