Dishonour Of Cheque Presumption U/S 139 Of NI Act Can not Be Rebutted By Mere Denial: SC Reiterates

On Monday, SC reiterated that mere denial of a debt or liability cannot shift the burden of proof from the accused in a case of dishounor of the cheque.

A bench of Justice A K Sikri and Justice Ashok Bhushan once again made it clear that Section 139 of the Negotiable Instruments Act, 1881, provides for drawing the presumption in favour of holder and a bare denial of the passing of the consideration and existence of debt, apparently would not serve the purpose of the accused.

The bench reiterated that the apex court has in various cases held that the accused may adduce evidence to rebut the presumption, but mere denial regarding the existence of debt shall not serve any purpose.

The bench said so while setting aside the judgment of the HC which cleared the man punished for dishonour of cheque by holding that he had been able to create doubt in the mind of the court with regard to the existence of debt/liability even as the accused had led no direct evidence to shift his burden.

Cheque Dishonoured: What you need to know

Technology and digitization have transformed how the banking sector operates. Today, you can access your banking information and transactions at your fingertips. Despite of the convenience that online banking offers, many people still prefer opting for traditional banking methods, such as visiting the bank to deposit a cheque. Irrespective of the ways you choose to conduct banking operations, there is always some risk associated with the process. For instance, you may become a victim of scams such as cheque fraud.  

Young generation usually has an idea about what online fraud is, however, there are still some people who might not even know about cheque fraud. Also, some of you might not even know of the possible actions you need to take once a cheque is bounced. Besides, there is also a possibility that you might not be aware of the fact that cheque bounce is considered as one of the financial offences in India that can result in disastrous consequences for the issuer.

Whether you are a victim of cheque fraud or are accused of such an offense, having a Cheque Bounce Advocate in Delhi by your side can save