Presumption Under Sections 118 and 139 NI Act: Defence in Cheque Bounce Cases

Presumption Under Sections 118 and 139 NI Act in Cheque Bounce Cases

Section 138 defence cannot be planned as though the complainant bears the entire evidential burden throughout the case. Sections 118 and 139 create statutory presumptions that materially affect trial once their factual foundation is established.

When the Presumption Arises

The Supreme Court has reiterated that Section 139 uses mandatory presumptive language. Where issuance or execution is established, including where the drawer admits the signature, the statutory presumption operates subject to rebuttal.

The Presumption Is Rebuttable

The accused may seek to rebut it using the complainant's evidence, cross-examination, documents, circumstances and, where appropriate, defence evidence. A bare assertion that a cheque was “security” or “misused” should not be treated as a complete defence without examining the underlying transaction.See the defence document checklist and defence assistance.General legal information only.