P&H: Upholds Cheque-Dishonour Conviction, Rejects ‘Security Cheque’ Defence

(i) Negotiable Instruments Act, 1881, Ss.118, 138 and 139 — Dishonour of cheque — Once accused admitted his signatures on cheque, presumption u/s.118 could be raised in favour of complainant that cheque had been issued for consideration and in discharge of an existing debt or...

(ii) Negotiable Instruments Act, 1881, S.139 — Dishonour of cheque — Complainant financial capacity — Mere suggestion challenging financial competence of complainant is not sufficient to rebut presumption u/s.139 of Act, burden of which always remains upon accused. (Para 12)

(ii) Negotiable Instruments Act, 1881, S.138 — Dishonour of cheque — Statutory notice — Notice dispatched to accused at his correct address, where accused did not dispute residing, was to be assumed delivered — Accused’s failure to pay within stipulated period constituted an offence u/s.138...