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Central Act · India · Chapter XVII — Of Penalties in Case of Dishonour of Certain Cheques for Insufficiency of Funds in the Accounts

Section 139 Presumption in favour of holder

Negotiable Instruments Act, 1881 · Edition: India Code central text incorporating the 2018 amendment

It shall be presumed, unless the contrary is proved, that the holder of a cheque received the cheque of the nature referred to in section138 for the discharge, in whole or in part, of any debt or other liability.

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Judgments on Section 139

LOK 2026 (10) Ker. 77 · High Court of Kerala

Vasanthy v. State of Kerala

Equivalent citations: 2026 KER 79569

SubjectCheque
JudgesJustice A. Badharudeen
ActsNegotiable Instruments Act, 1881, Bharatiya Nagarik Suraksha Sanhita, 2023

When the complainant deposes on oath detailing the transaction and execution of the cheque, and such testimony remains unshaken in cross-examination, the initial burden under Sections 118 and 139 of the NI Act stands discharged. Omission to mention the date of borrowing in the complaint…

LOK 2026 (8) Ker. 76 · High Court of Kerala

D. Chandran v. S. Anilkumar

Equivalent citations: 2026 (8) KLR 73 : 2026 KER 60969 : 2026 KLT OnLine 2102

Subject–
JudgesJustice A. Badharudeen
ActsNegotiable Instruments Act, 1881

Once the signature on a cheque is admitted, the court is obligated to presume the cheque was issued for a legally enforceable debt. The standard of proof required to rebut the statutory presumptions is "preponderance of probabilities" rather than "mere possibility" or "bare denial". The…

LOK 2026 (7) Ker. 291 · High Court of Kerala

Prameela Varghese v. Abraham Samuel

Equivalent citations: 2026 KER 57049

SubjectCheque
JudgesJustice Mohammed Nias C.P
ActsNegotiable Instruments Act, 1881, Code of Civil Procedure, 1908

In the present case, while the plaintiff proved the defendant's signature, material contradictions in the testimony of the plaintiff's witnesses failed to establish voluntary execution or delivery of the cheque by the defendant. The statutory presumptions under the NI Act were therefore un-activatable. Decree of…