Negotiable Instruments Act, 1881
Section 138—Dishonour of cheque—Conviction—Company closed down in March 2011 and the cheque is dated 24.10.2011—This prima facie supports the case of the petitioner that the cheque issued was undated and given as a security—Signature on the cheque is also incomplete—As such on the date of presentation of the cheque, the company which allegedly issued the cheque was no more existence—Mandatory provision of Section 138 of the NI Act is not present—Presumption as to the debt and/or liability has also been rebutted by proving that the cheque with incomplete signature was subsequently dated and submitted eight months after the company which alleged issued it had closed down, with no outstanding dues—Conviction set aside.
[Paras 19 to 25]