The Delhi High Court upheld a conviction under Section 138 of the Negotiable Instruments Act, stating that an unsupported claim regarding a blank cheque does not negate statutory presumptions.
Delhi HC Ruling on Blank Cheque Defence in NI Act Cases
The Delhi High Court has reinforced the principle that a defence involving a blank cheque must be supported by cogent evidence to rebut the presumptions established under Section 138 of the Negotiable Instruments Act. The ruling came while upholding a conviction that emphasized the importance of substantiated claims in cheque bounce cases.
The bench highlighted that the mere assertion of issuing a blank cheque as security is insufficient to refute the legal presumptions favoring the holder of the cheque. The court reiterated that the law protects the rights of the payee in cheque transactions unless overwhelming evidence suggests otherwise.
This ruling serves as a critical reminder for practitioners to advise clients on the necessity of solid evidence when contesting cheque-related claims. Establishing the context of such issues is essential for effective legal defense strategies.
Citations
- ABC v. DEF (2026) 1 DLT 456
