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    <title>2026 (10) TMI 1681 - MADRAS HIGH COURT</title>
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    <description>Presumptions of consideration and legally enforceable liability arising from a cheque under the Negotiable Instruments Act are rebuttable. An accused may establish a probable defence on a preponderance-of-probabilities standard through direct evidence or surrounding circumstances, after which the complainant must prove the debt or liability by acceptable evidence. Pre-presentation misuse complaints, stop-payment instructions, disputed signature, consultancy relationship, lack of loan security or records, and failure to prove lending source and capacity may collectively rebut the presumptions. Without cogent proof of the alleged loan, a conviction for cheque dishonour cannot be sustained.</description>
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    <pubDate>Tue, 06 Oct 2026 00:00:00 +0530</pubDate>
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      <link>https://www.taxtmi.com/caselaws?id=801738</link>
      <description>Presumptions of consideration and legally enforceable liability arising from a cheque under the Negotiable Instruments Act are rebuttable. An accused may establish a probable defence on a preponderance-of-probabilities standard through direct evidence or surrounding circumstances, after which the complainant must prove the debt or liability by acceptable evidence. Pre-presentation misuse complaints, stop-payment instructions, disputed signature, consultancy relationship, lack of loan security or records, and failure to prove lending source and capacity may collectively rebut the presumptions. Without cogent proof of the alleged loan, a conviction for cheque dishonour cannot be sustained.</description>
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