Statutory presumption in cheque dishonour cases bars quashing where authority and liability are disputed matters for evidence.

Where a cheque issued from a company account is dishonoured after statutory notice, a prima facie offence under Section 138 of the Negotiable Instruments Act may be disclosed at the summoning stage. The statutory presumption in favour of the cheque holder applies, and disputed questions about a signatory's resignation as director, authority to issue the cheque, retention of the cheque book, or the existence of an enforceable liability require evidence. Such defences cannot be decided in quashing proceedings under Section 482 of the Code of Criminal Procedure. The summoning order was sustained and quashing was declined on the facts pleaded.

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Issues: Whether the summoning order and the complaint under the Negotiable Instruments Act, 1881 were liable to be quashed on the grounds that the signatory had resigned as director earlier, lacked authority to issue the cheques, and that no legally enforceable debt was made out.

Analysis: The complaint and the cheque material showed that the cheques were issued from the company account, were signed by Amandeep Singh, and were dishonoured for insufficiency of funds after statutory notice. The allegations in the complaint were sufficient to raise a prima facie case at the stage of summoning. The questions whether Amandeep Singh had retained and issued the cheque book after resignation, whether he had authority to sign the cheques, and whether the liability was ultimately enforceable were disputed matters requiring evidence. The holder of the cheques was entitled to the statutory presumption, and the defence that the cheques were invalid or unsupported by liability could not be accepted at the quashing stage.

Conclusion: The petitions for quashing were not maintainable on the facts pleaded and the summoning order was sustained against both accused.

Ratio Decidendi: At the stage of quashing or summoning, where the complaint and cheque records disclose a prima facie offence under Section 138 and the statutory presumption applies, disputed issues regarding authority, resignation, and actual liability must be tried on evidence and cannot be decided in proceedings under Section 482 of the Code of Criminal Procedure, 1973.

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