Search Results Page
Search Results
1 - 4 of 4 (0.38 seconds)Section 118 in The Negotiable Instruments Act, 1881 [Entire Act]
Section 139 in The Negotiable Instruments Act, 1881 [Entire Act]
Hiten P. Dalal vs Bratindranath Banerjee on 11 July, 2001
In our view the impugned Judgment cannot be sustained at all. The
Judgment erroneously proceeds on the basis that the burden of proving
consideration for a dishonored cheque is on the complainant. It appears that
the learned Judge had lost sight of Sections 118 and 139 of the Negotiable
Instruments Act. Under Sections 118, unless the contrary was proved, it is
to be presumed that the Negotiable Instrument (including a cheque) had been
made or drawn for consideration. Under Section 139 the Court has to
presume, unless the contrary was proved, that the holder of the cheque
received the cheque for discharge, in whole or in part, of a debt or liability.
Thus in complaints under Section 138, the Court has to presume that the
cheque had been issued for a debt or liability. This presumption is rebutable.
However the burden of proving that a cheque had not been issued for a debt
or liability is on the accused. This Court in the case of Hiten P. Dalal vs.
Bratindranath Banerjee reported in (2001) 6 S.C.C. 16 has also taken an
identical view.
1