The Himachal Pradesh High Court held that admission of signature on a cheque, even blank, triggers a statutory presumption under Section 139 of the Negotiable Instruments Act, shifting burden to the accused to rebut it.
The Himachal Pradesh High Court has affirmed that the admission of a signature on a blank cheque by the accused creates a statutory presumption of liability under Section 139 of the Negotiable Instruments Act, 1881, placing the burden on the accused to rebut the presumption of lawful issuance for a valid debt or liability.
Presumption Arises Despite Cheque Being Blank
The court observed that the statutory presumption under Section 139 arises once it is proven or admitted that the accused signed the cheque. The complainant need not establish the exact date of issuance, amount, or underlying transaction at the threshold. A blank cheque issued with blank columns constitutes a continuing invitation to fill in details within the scope of authorization.
"The admission of signature shifts the burden to the accused to show that the cheque was issued without consideration or was obtained unduly."
Conviction may follow if the accused fails to rebut the presumption with credible evidence. This reinforces the pro-creditor stance of the NI Act and underscores the risk of issuing signed blank cheques. Practitioners must advise clients to avoid such practices to prevent misuse.
Citations
- Negotiable Instruments Act, 1881, Section 139
