Cheque presumptions under the Negotiable Instruments Act upheld where execution is admitted and rebuttal evidence is absent.

Where the accused admits execution of the cheque, the presumptions under Sections 118 and 139 of the Negotiable Instruments Act, 1881 arise in favour of the holder that the cheque was issued towards discharge of a debt or liability. Those presumptions can be displaced only by probable evidence on a preponderance of probabilities; mere denial, or an assertion that the cheques were blank or issued in good faith, is insufficient. On the record, cheque presentation within validity, dishonour for insufficiency of funds, timely notice, and filing within the prescribed period were established, and the accused produced no rebuttal evidence. The complaint was therefore legally maintainable and liability under Section 138 stood established.

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Issues: Whether the complaint filed by the complainant was legally maintainable under the Negotiable Instruments Act, 1881.

Analysis: The cheque amounts, signatures, presentation within the validity period, dishonour for insufficiency of funds, issuance of statutory notice within time, and filing of the complaint within the prescribed period were all established from the record. Once the accused admitted his signature on the cheques, the presumptions under Sections 118 and 139 of the Negotiable Instruments Act, 1881 arose in favour of the complainant, including the presumption that the cheques were issued towards discharge of a debt or liability. The accused did not adduce any oral or documentary evidence to rebut those presumptions on the standard of preponderance of probabilities. Mere denial and the suggestion that the cheques were blank or given in good faith was insufficient to displace the statutory presumptions.

Conclusion: The complaint was legally maintainable and the finding of guilt under Section 138 of the Negotiable Instruments Act, 1881 was sustained against the petitioner.

Ratio Decidendi: Where execution of the cheque is admitted, the presumptions under Sections 118 and 139 of the Negotiable Instruments Act, 1881 operate in favour of the holder, and the accused must rebut them by probable evidence; absent such rebuttal, maintainability and liability under Section 138 stand established.

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