Himachal Pradesh High Court held that admission of signature on a cheque raises a statutory presumption of liability under Section 139 of the Negotiable Instruments Act.
HP HC: Admission of Signature on Blank Cheque Triggers Section 139 Presumption
The Himachal Pradesh High Court upheld a conviction under Section 138 of the Negotiable Instruments (NI) Act, holding that the accused's admission of signing the cheque—even if blank—triggered a statutory presumption under Section 139.
The court ruled that once the signature is admitted, the law presumes that the cheque was issued for consideration and in discharge of a legally enforceable debt. The burden then shifts to the accused to rebut this presumption, which was not discharged in the present case.
Admission of execution of the instrument gives rise to a rebuttable presumption under Section 139 that it was issued for a valid liability.
This judgment reinforces evidentiary standards in NI Act prosecutions. Lawyers defending such cases must carefully evaluate whether to admit signature and ensure alternate defences are promptly raised to rebut the statutory presumption.
