Thursday, October 16, 2025

Cheque Bounce and Application of S.139 of Negotiable Instruments Act, 1881

Cheque Bounce and Application of S.139 of Negotiable Instruments Act, 1881 

In another case dealing with Negotiable Instruments Act, 1881 in Apex Forex Services Pvt Ltd v. Shakti International Fashion Linkers [2020] GCtR 1095 (SC) it was held that "Section 139 of the Act is an example of reverse onus clause and therefore once the issuance of the cheque has been admitted and even   the   signature   on   the   cheque   has   been   admitted,   there   is always a presumption in favour of the complainant that there exists legally   enforceable   debt   or   liability   and   thereafter   it   is   for   the accused to rebut such presumption by leading evidence."

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