The Himachal Pradesh High Court held that admission of a signature on a blank cheque raises a legal presumption of liability under Section 139 of the Negotiable Instruments Act, 1881. The accused must rebut this presumption to avoid conviction.
Admission of Signature on Blank Cheque Presumed Valid: HP HC
The Himachal Pradesh High Court has held that the mere admission of a signature on a blank cheque triggers a statutory presumption of liability under Section 139 of the Negotiable Instruments Act, 1881. In the absence of credible rebuttal evidence, this presumption supports conviction under Section 138 of the Act.
The court emphasized that the legal burden shifts to the accused once the complainant establishes the existence of a legally enforceable debt and the accused admits the signature on the cheque. The accused must then prove the cheque was issued without consideration or under coercion, fraud, or undue influence. Mere denial of liability, without evidence, is insufficient.
"The admission of the signature raises a presumption that the cheque was issued for a legally enforceable debt and due diligence was exercised,"
For legal practitioners, this reinforces the evidentiary risk in admitting signature authenticity without a comprehensive defence strategy. Accused parties should ensure a complete record is made at the earliest stage to challenge the transaction's legitimacy under Section 139, particularly where cheques were issued as security or in blank. The order underscores the importance of proactive defence framing in NI Act proceedings.
Citations
- Negotiable Instruments Act, 1881, Section 139
