N. Vijay Kumar vs Vishwanath Rao N. 2025 INSC 537 - Ss. 138,139 NI Act - Cheque Bounce Case - Probable Defence
Negotiable Instruments Act - Section 118,138,139- Section 118 (a) assumes that every negotiable instrument is made or drawn for consideration, while Section 139 creates a presumption that the holder of a cheque has received the cheque in discharge of a debt or liability. Presumptions under both are rebuttable, meaning they can be rebutted by the accused by raising a probable defence. (Para 6) Once such a defence is established, the burden again shifts upon the complainant to now establish his case beyond a reasonable doubt, for after all, the effect of Section 138 of the N.I. Act is a criminal conviction. (Para 11)
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