Cheque presumption under the Negotiable Instruments Act bars pre-trial quashing where liability is disputed and must be tested at trial.

Where cheque issuance, signatures, dates and amounts are admitted, the presumptions under Sections 118(a) and 139 of the Negotiable Instruments Act operate in favour of the complainant, and the question of legally enforceable debt is ordinarily a matter for trial and rebuttal by the accused. Disputed defences concerning the purpose of the cheques, the extent of liability, or the underlying transaction cannot be conclusively decided in proceedings under Section 482 of the Code of Criminal Procedure at the pre-trial stage. On that basis, quashing was declined and the complaints were permitted to continue.

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Issues: Whether complaints under Section 138 of the Negotiable Instruments Act, 1881, and the order framing notice under Section 251 of the Code of Criminal Procedure, 1973, could be quashed under Section 482 of the Code of Criminal Procedure, 1973 on the plea that the cheques were not issued towards a legally enforceable debt or liability.

Analysis: The petitions assailed the criminal complaints on the ground that the cheques did not represent any enforceable liability and that the dispute concerned the underlying transaction between the parties. The issuance of the cheques, signatures, dates, and amounts were not disputed. In such a situation, the presumptions under Sections 118(a) and 139 of the Negotiable Instruments Act, 1881 operate in favour of the complainant, and the existence or non-existence of liability becomes a matter for rebuttal by the accused at trial. The Court held that disputed questions about the purpose of issuance of the cheques, the extent of liability, and the accused's defence could not be conclusively determined in proceedings under Section 482 of the Code of Criminal Procedure, 1973 at the pre-trial stage.

Conclusion: The quashing petitions were not maintainable on the pleaded factual defence, and the complaints were allowed to proceed. The petitions were dismissed.

Ratio Decidendi: When issuance of a cheque is admitted, the statutory presumptions under Sections 118(a) and 139 of the Negotiable Instruments Act, 1881 arise, and disputed defences as to legally enforceable debt ordinarily must be tested at trial rather than in quashing proceedings under Section 482 of the Code of Criminal Procedure, 1973.

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