Dishonor of Cheque - misuse of disputed cheque - rebuttal of ...

Cheque Dishonor Case: Applicant Admits Signature, Triggers Presumption of Liability u/ss 118 & 139 NI Act.

November 10, 2021

Case Laws     Indian Laws     HC

Dishonor of Cheque - misuse of disputed cheque - rebuttal of presumption or not - Section 138 of NI Act - In the facts of the present case, the respondent no. 2 has specifically averred in the complaint that the money was lent to applicant by her through her husband and relatives. When cheque was presented for the collection, the name of present applicant as payee was written on the cheque. The applicant being a drawer of the cheque, has not denied his signature - It is settled law that once the accused admitted a signature on the cheque in question, the presumption under Sections 118 and 139 of the NI Act is to be drawn in favour of the complainant. - HC

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