The Himachal Pradesh High Court held that admission of signature on a blank cheque raises a statutory presumption of liability under Section 139 of the Negotiable Instruments Act, which, if unrebutted, supports conviction.
HP HC: Admission of Signature on Blank Cheque Raises Presumption Under NI Act
The Himachal Pradesh High Court has ruled that the admission of a signature on a blank cheque triggers a presumption of liability under Section 139 of the Negotiable Instruments Act, 1881. In the absence of sufficient rebuttal, such presumption can form the basis for conviction in cheque dishonour cases.
The court emphasized that Section 139 creates a reverse burden, where the burden shifts to the accused to disprove the presumption of issuance of the cheque for a legally enforceable debt or liability. The fact that the cheque was issued blank does not negate the presumption once the signature is admitted. The accused must provide a credible explanation for the signature in order to rebut the statutory presumption.
The admitted signature on the cheque, even if issued blank, raises a presumption under Section 139 that it was issued for a legally enforceable debt.
For practitioners, this underscores the importance of carefully advising clients in NI Act cases. An admission of signature—especially in writing or before a magistrate—can be decisive. Defence strategies must focus on generating credible evidence to rebut the statutory presumption, such as proving coercion, lack of consideration, or immediate notice of dishonour.
Citations
- Negotiable Instruments Act, 1881, Section 139
