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        Case ID :

        2022 (4) TMI 356 - HC - Indian Laws

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        Signed blank cheque presumptions under the Negotiable Instruments Act remained unrebutted, leaving the conviction under cheque dishonour law intact. A voluntarily signed blank cheque issued towards payment attracts the presumptions under Sections 118(a) and 139 of the Negotiable Instruments Act, 1881. ...
                        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.

                            Signed blank cheque presumptions under the Negotiable Instruments Act remained unrebutted, leaving the conviction under cheque dishonour law intact.

                            A voluntarily signed blank cheque issued towards payment attracts the presumptions under Sections 118(a) and 139 of the Negotiable Instruments Act, 1881. Here, the accused admitted issuance of the cheque, and the complainant's evidence, including oral testimony and mediator support, established the underlying liability and settlement. The accused failed to rebut the statutory presumptions with cogent evidence, and his Section 313 CrPC stand did not support the pleaded defence that the cheque was only a security instrument. The challenge to the complainant's source of funds was also raised belatedly and did not disturb the concurrent factual findings, so the conviction and sentence under Section 138 were left undisturbed.




                            Issues: Whether the concurrent conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881 called for interference in revision, particularly in view of the defence that the cheque was only a signed blank security cheque and that the complainant had not proved the underlying transaction.

                            Analysis: The accused admitted issuance of a signed blank cheque, while the complainant's version of a monetary liability and issuance of the cheque in settlement was supported by his oral evidence and the evidence of the mediator. Once execution of the signed cheque was established, the presumptions under Sections 118(a) and 139 of the Negotiable Instruments Act, 1881 arose in favour of the complainant. The accused did not adduce cogent evidence to rebut those presumptions, and his stand under Section 313 of the Code of Criminal Procedure, 1973 did not support the defence pleaded. The challenge to the complainant's source of funds was also raised belatedly and did not undermine the concurrent factual findings.

                            Conclusion: The revisions were not liable to be admitted and were dismissed in limine; the conviction and sentence under Section 138 of the Negotiable Instruments Act, 1881 stood undisturbed.

                            Ratio Decidendi: A voluntarily signed blank cheque, when issued towards payment, attracts the statutory presumptions under Sections 118(a) and 139 of the Negotiable Instruments Act, 1881, and the accused must rebut those presumptions by cogent evidence.


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