Statutory presumptions in cheque dishonour cases cannot be displaced at quashing on disputed part-payment claims without unimpeachable evidence.

In a Section 138 NI Act quashing challenge, the Delhi HC held that the cheque issuer could not defeat the complaint by asserting disputed part-payments made through a nephew to the complainant's wife. The cheque was admittedly issued, so the statutory presumptions under Sections 118 and 139 applied in favour of the complainant. Whether the alleged transfers were made at the complainant's behest or in discharge of liability was a factual dispute requiring evidence, and the defence could not be accepted at the quashing stage without admitted, unimpeachable material. The petition was rejected and the complaint was allowed to continue.

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Issues: Whether the complaint under Section 138 of the Negotiable Instruments Act, 1881 was liable to be quashed on the basis that alleged part-payments made through the petitioner's nephew to the complainant's wife showed that no enforceable debt of the cheque amount survived.

Analysis: The cheque was admittedly issued by the petitioner, and the statutory presumption under Section 139 of the Negotiable Instruments Act, 1881 operated in favour of the complainant that the cheque was issued towards discharge of a debt or liability. The petitioner relied on UPI transfers allegedly made to the complainant's wife, but the Court held that whether those payments were made at the behest of the complainant or in discharge of the petitioner's liability was a disputed question of fact requiring evidence. At the stage of quashing, the defence could not be accepted unless supported by admitted and unimpeachable material of sterling quality. The Court also reiterated that the accused must rebut the statutory presumptions on a preponderance of probabilities, and mere assertions of part-payment were insufficient to stop the complaint from proceeding.

Conclusion: The petition for quashing was rejected and the complaint proceedings were allowed to continue.

Ratio Decidendi: In proceedings under Section 138 of the Negotiable Instruments Act, 1881, an accused cannot secure quashing by relying on disputed part-payments unless the defence is established by unimpeachable material; statutory presumptions under Sections 118 and 139 must be rebutted by evidence, ordinarily at trial.

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