Bank's slip prima facie evidence of certain facts

Related judgements & precedents

These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.

1. Puvvada Venkata Krishna Murthy vs The State of A.p.

   High Court 22 Feb 2024 Persuasive (Other High Court)

   Court's Decision & Legal Precedent

   When a cheque is issued towards discharge of a legally enforceable debt and is dishonored due to insufficient funds, the issuer commits an offense under Section 138 of the Negotiable Instruments Act. The presentation of a cheque on multiple occasions, each resulting in dishonor, constitutes separate causes of action. The presumption under Section 146 of the Negotiable Instruments Act applies to validate the fact of dishonor based on the bank's official cheque return memo, and technical errors in the date of the memo (such as a Sunday date) do not invalidate the entire case if the bank has issued an official note confirming dishonor. The absence of cross-examination on key facts (such as the signature on the cheque and promissory note, or the loan amount) and the failure of the accused to adduce defense evidence or testify in his own defense strengthen the case against the accused.

   On this section: Presumption of dishonor - court shall presume the fact of dishonor of cheque unless and until the same is proved otherwise; applied to validate the cheque return memo despite the Sunday date issue

   Read the full order on eCourts India

2. Shri Subhash G Narvekar vs Mr Dharmendra Kumar Singh

   CIVIL AND CRIMINAL COURTS, MAPUSA 06 Sep 2022 Persuasive (Other High Court/District Court)

   Court's Decision & Legal Precedent

   In cheque dishonour cases under Section 138 of the Negotiable Instruments Act, the statutory presumptions in favour of the complainant (under Sections 139 and 118) are mandatory and rebuttable. The accused must rebut these presumptions by preponderance of probability through cogent evidence. Mere allegations without supporting material, such as claiming blank cheques were issued for charity without proof of the charity or the complainant's charitable status, are insufficient to rebut the presumptions. The bank's cheque return memo creates a prima facie presumption of dishonour under Section 146, which is rebuttable only if the accused produces evidence of funds in the account. When the accused fails to discharge the burden of rebuttal, the court must find the accused guilty of the offence under Section 138.

   On this section: Bank's slip prima facie evidence - Court applied this section to presume the fact of dishonour based on the bank's cheque return memo, which is rebuttable only if accused provides evidence of funds in account.

   Read the full order on eCourts India

The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.