Negotiable Instruments Act Section 139 — Presumption in favour of holder

CHAPTER XVI O F I N T E R N A T I O N A L LA W

General

Summary

If a person has a cheque that falls under the dishonour provisions of the law, the court will assume that the cheque was given to pay off a debt or other legal obligation, either fully or partially. This assumption stands unless the person who gave the cheque can prove otherwise. In other words, the burden is on the giver of the cheque to show that it was not meant to settle a debt.

Official Text

It shall be presumed, unless the contrary is proved, that the holder of a cheque received the cheque of the nature referred to in section138 for the discharge, in whole or in part, of any debt or other liability.