The Himachal Pradesh High Court held that admission of a signature on a blank signed cheque creates a statutory presumption under Section 139 of the Negotiable Instruments Act, and failure to rebut it leads to conviction for cheque bounce.
Admission of Signature on Blank Cheque Raises Presumption Under NI Act
The Himachal Pradesh High Court has affirmed that when an accused admits signing a cheque, even if delivered blank, a statutory presumption arises under Section 139 of the Negotiable Instruments Act, 1881, that it was issued for consideration. The burden then shifts to the accused to rebut this presumption.
In the matter under review, the accused admitted executing a blank cheque but denied authorizing its filling or dishonour. The Court held that such admission, in absence of credible evidence negativing consideration or authorizing the complainant to fill material particulars, is sufficient to sustain conviction under Section 138.
The accused cannot escape liability merely by asserting the cheque was blank at the time of execution, the Court observed.
For legal practitioners, this reaffirms the strength of Section 139 presumptions in NI Act cases. Accused persons must present concrete, plausible explanations and supporting evidence to counter the presumption. Defences based solely on blank execution, without proof of coercion, fraud, or lack of authorization, are unlikely to succeed.
Citations
- Negotiable Instruments Act, 1881, s. 139
