Negotiable Instruments Act, 1881
Sections 138 & 142—Dishonour of cheque—Petition to quash proceedings—Whether the cheques that are issued as security could become the subject matter of proceedings under Section 138 of the Negotiable Instruments Act—It can and it is a matter of evidence for the accused to prove before the concerned court with regard to the issuance of cheque or otherwise—Petition dismissed.
[Para 14]
Sections 138 & 142—Dishonour of cheque—Petition to quash proceedings—A drawer who signs the cheque and hands it over to the payee is presumed to be liable, unless the drawer adduces evidence to rebut the presumption that the cheque has been issued towards payment of a debt, in discharge of a liability or otherwise—Presumption is in tune with Section 139 of the Negotiable Instruments Act—Death of the drawer of the cheque cannot and will not efface such presumption, as the cheque is issued on behalf of the company—Company is in existence, so are the Chairman and Directors—It is for the Company or its Chairman or Directors to rebut such presumption before the court, as it is trite that, bearers of the offence of a company may come and go, the company remains—Petition dismissed.
[Para 15]