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.
Related Judgments
- TRIYAMBAK S. HEGDE vs SRIPAD — Supreme Court of India (2021)
- T. VASANTHAKUMAR vs VIJAYAKUMARI — Supreme Court of India (2015)
- VIJAY vs LAXMAN AND ANR — Supreme Court of India (2013)
- HMT WATCHES LTD. vs M.A. ABIDA &ANR — Supreme Court of India (2015)
- The Hon’ble Justice Shampa Dutt (Paul); CRA 428 of 2015; Environ Energ vs The State of West Bengal & Ors., For Amicas Curiae, : Ms. Rita Dutta — Calcutta High Court (Kolkata Principal Seat) (2022)
