Saturday, May 8, 2010

Rebuttable presumption in Cheque-Bouncing cases: Supreme Court

Rebuttable presumption in Cheque-Bouncing cases: Supreme Court: "Holding that the presumption under Section 139 of the Negotiable Instruments Act is one of rebuttable in nature, it is open to the accused in a cheque-bounce case to lead in evidence to rebut the presumption. Section 139 prescribes that "It shall be presumed, unless the contrary is proved, that the holder of a cheque received the cheque, of the nature referred to in Section 138 for the discharge, in whole or in part, of any debt, or other liability." Thus once a holder of cheque lodges a complaint, it is presumed that the cheque was issued for discharging a liability, which unless rebutted leads to a conclusion that offence has indeed been concluded. However this presumption can be rebutted and the Bench specified the manner in which such...



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