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    <title>2025 (6) TMI 1157 - KERALA HIGH COURT</title>
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    <description>Proof of a signed cheque and the underlying transaction triggers the statutory presumptions under Sections 118 and 139 of the Negotiable Instruments Act, shifting the burden to the accused to rebut liability with cogent evidence. A voluntarily handed over blank signed cheque does not, by itself, defeat a prosecution under Section 138. Where the dishonour memo reflects insufficiency of funds, that supports the inference that the cheque was duly signed, and a trial court should not reject the complainant&#039;s case merely because of a collateral agreement.</description>
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      <description>Proof of a signed cheque and the underlying transaction triggers the statutory presumptions under Sections 118 and 139 of the Negotiable Instruments Act, shifting the burden to the accused to rebut liability with cogent evidence. A voluntarily handed over blank signed cheque does not, by itself, defeat a prosecution under Section 138. Where the dishonour memo reflects insufficiency of funds, that supports the inference that the cheque was duly signed, and a trial court should not reject the complainant&#039;s case merely because of a collateral agreement.</description>
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