promissory note & Cheques- vol-2

  1. Section 139 of the N.I. Act, once a cheque has been signed and issued in favour of the holder, there is statutory presumption that it is issued in discharge of a legally enforceable debt or liability.This presumption is a rebuttable one, if the issuer of the cheque is able to discharge the burden that it was issued for some other purpose like security for a loan.But the accused failed to discharge his burden having admitted the cheques and pronote were signed by him.
  2. Once the accused raised doubts about the financial capacity of the complainant for giving a hand loan of huge amount  to the accused – a probable defence on behalf of the accused – rebutted the presumption under sec.139 – which shifted the burden on the complainant to prove his financial capacity and other facts – the complainant failed to prove his financial capacity and as such complaint is liable to be dismissed.