https://www.taxtmi.com/caselaws?id=779205 A cheque issued towards an existing liability, even if the underlying debt is argued to be time-barred, can still support enforcement where it operates as a fresh promise under Section 25(3) of the Indian Contract Act, 1872. The statutory presumption of liability under Section 139 of the Negotiable Instruments Act, 1881 remains rebuttable, but the accused must displace it on a preponderance of probabilities with credible evidence. On the stated facts, the loan documents, later mortgage deed, demand letter, and issuance of cheques indicated continuing liability, and the repayment defence was found unsupported and inconsistent. en-us Thu, 25 Sep 2025 00:00:00 +0530 Wed, 01 Oct 2025 09:07:51 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=779205 A cheque issued towards an existing liability, even if the underlying debt is argued to be time-barred, can still support enforcement where it operates as a fresh promise under Section 25(3) of the Indian Contract Act, 1872. The statutory presumption of liability under Section 139 of the Negotiable Instruments Act, 1881 remains rebuttable, but the accused must displace it on a preponderance of probabilities with credible evidence. On the stated facts, the loan documents, later mortgage deed, demand letter, and issuance of cheques indicated continuing liability, and the repayment defence was found unsupported and inconsistent. Case-Laws Indian Laws Thu, 25 Sep 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=779205