https://www.taxtmi.com/caselaws?id=299418 Presumptions under Sections 118 and 139 of the Negotiable Instruments Act arose once the cheque signatures were admitted, but they were rebuttable on a preponderance of probabilities. The complainant failed to prove that the cheques were issued towards a loan or that any legally enforceable debt matched the cheque amounts; the defence evidence instead supported issuance of the cheques as security for consultancy fees. A security cheque can attract Section 138 only if, when presented, it represents an actual enforceable liability. Because the proved consultancy liability was much lower than the cheque amounts and there was no authority to fill them beyond that liability, Section 138 was not attracted on these facts. en-us Fri, 21 Jul 2006 00:00:00 +0530 Tue, 14 Dec 2021 11:23:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=299418 Presumptions under Sections 118 and 139 of the Negotiable Instruments Act arose once the cheque signatures were admitted, but they were rebuttable on a preponderance of probabilities. The complainant failed to prove that the cheques were issued towards a loan or that any legally enforceable debt matched the cheque amounts; the defence evidence instead supported issuance of the cheques as security for consultancy fees. A security cheque can attract Section 138 only if, when presented, it represents an actual enforceable liability. Because the proved consultancy liability was much lower than the cheque amounts and there was no authority to fill them beyond that liability, Section 138 was not attracted on these facts. Case-Laws Indian Laws Fri, 21 Jul 2006 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=299418