Sec. 138 of NI Act - Presumption

2010(2) MADRAS WEEKLY NOTES (Crl) Dishonour of Cheque Cases – Page 65

Sections 118 & 139 – Presumption under – can be drawn only when execution of cheque is admitted and proved – Admission of signature in blank cheque – Not admission of execution of cheque – Respondent/Accused admitted having given a signed blank cheque as security – That admission will never amount to admission of execution of cheque – To draw presumption complainant has to establish that accused had drawn cheque and issued to him – Cheque having been issued as signed blank cheque and not as a cheque for Rs. 1, 50, 000/-, finding of the Trial court that complainant failed to establish that cheque was issued in discharge of debt or liability.