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Presumption under the Negotiable Instruments Act arises where...

Dishonour of cheque: presumption of legally enforceable debt under N.I. Act upheld; conviction and sentence maintained.

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Indian Laws February 11, 2026 Case Laws HC
Presumption under the Negotiable Instruments Act arises where cheque execution and receipt of legal notice are admitted, shifting the burden to the accused to rebut that the cheque discharged a legally enforceable debt; the admitted signature on the cheque suffices to raise that presumption. The accused failed to lead evidence and relied only on his Criminal Procedure statement, which did not establish a probable defence; accordingly the presumption stood unrebutted and conviction and sentence were upheld. Privity with the named payee was unnecessary for the holder to invoke the presumption. The high court found no illegality or perversity in the trial court's decision and dismissed the revisional petition.

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Acts Income Tax