The Himachal Pradesh High Court held that admission of a signature on a blank cheque raises a statutory presumption of its lawful issue under Section 139 of the Negotiable Instruments Act. Non-rebuttal leads to conviction.
Admission of Signature on Blank Cheque Triggers Presumption Under NI Act: HP HC
The Himachal Pradesh High Court has ruled that when an accused admits signing a blank cheque, a statutory presumption arises under Section 139 of the Negotiable Instruments Act, 1881, that the cheque was issued for a legally enforceable debt or liability. The burden then shifts to the accused to rebut this presumption.
The Court dismissed the appeal challenging conviction under Section 138 of the NI Act, observing that the accused did not dispute signing the cheque but merely claimed it was handed over as security.
"Merely labelling a cheque as 'security' does not negate the presumption under Section 139,"the Court held, emphasizing that without rebuttal evidence showing no liability existed, the presumption stands.
This ruling reinforces the evidentiary strength of admitted signatures in cheque bounce cases. For practitioners, it underscores the importance of adducing credible evidence to rebut Section 139 presumptions. Absent such evidence, conviction is likely, even if the cheque was issued in blank and later misused.
Citations
- Negotiable Instruments Act, 1881, Section 139
- Section 138 NI Act
