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IN THE HIGH COURT OF HIMACHAL PRADESH, SHIMLA
RAKESH KAINTHLA
Sagar Katha Factory – Appellant
Versus
Jaswant Singh – Respondent
The case of Sanjabij Tari v. Kishore S. Borcar (2025) 259 appears to be discussed in the context of the legal principles governing the presumption of consideration and the burden of proof in cases involving cheques and the Negotiable Instruments Act. Specifically, the judgment emphasizes that once the issuance of a cheque and the signature thereon are admitted, a presumption arises that the cheque was issued for consideration and in discharge of a debt or liability (!) (!) .
Furthermore, the court highlights that this presumption is rebuttable, and the burden shifts to the accused to establish a probable defence to disprove the liability (!) (!) . The decision underscores that the courts should not require the complainant to prove the source of funds or the capacity to pay at the initial stage, as the statutory presumption already supports the existence of a debt or liability (!) (!) .
In the context of the specific case, the judgment notes that the presumption in favor of the complainant was not properly rebutted by the accused, and the evidence on record supported the conclusion that the cheque was issued in discharge of a debt. The case reinforces the principle that the presumption under the relevant sections of the NI Act is a significant factor in determining the guilt or innocence, and courts should carefully consider whether the accused has successfully rebutted this presumption with credible evidence (!) (!) .
Overall, the case emphasizes the importance of the presumption of consideration upon the issuance and signing of a cheque and clarifies that the burden of proof lies with the accused to establish a probable defence to rebut this presumption, especially in proceedings under the Negotiable Instruments Act.
JUDGMENT :
RAKESH KAINTHLA, J.
1. The present appeal is directed against the judgment dated 08.03.2013 passed by learned Chief Judicial Magistrate, Sirmaur District at Nahan (the learned Trial Court), vide which the respondent (accused before the learned Trial Court) was acquitted of the accusation for which he was being tried. (Parties shall hereinafter be referred to in the same manner as they were arrayed before the learned Trial Court for convenience.)
2. Briefly stated, the facts giving rise to the present appeal are that the complainant filed a complaint before the learned Trial Court for the commission of an offence punishable under Section 138 of the Negotiable Instruments Act, 1881 (in short ‘NI’ Act). It was asserted that the complainant is a partnership concern and is engaged in the manufacturing of Katha. The accused agreed to supply the Khair wood. The complainant advanced Rs.27,57,000/- to the accused on different dates, but the accused supplied the Khair wood worth Rs.22,07,000/- to the complainant. An amount of Rs.5,50,000/- was due from the accused. The accused admitted his liability to pay Rs.5,50,000/- to the complainant and undertook to supply Khair wood to the co
The presumption under Section 139 of the NI Act mandates that a cheque is presumed to be issued for discharge of a debt unless the accused proves otherwise.
Presumption under Section 139 of the Negotiable Instruments Act requires the accused to present credible evidence to rebut the holder's claim of legal liability regarding the cheque issued.
The presumption under Section 139 of the NI Act obligates the accused to provide credible evidence to rebut the claim of issuance of a cheque for a legally enforceable debt.
The presumption of liability under the NI Act is rebuttable, and the burden of proof lies on the complainant to establish the existence of a legally enforceable debt.
The presumption under Section 139 of N.I. Act is a presumption of law, as distinguished from the presumption of facts. Presumptions are rules of evidence and do not conflict with the presumption of i....
The presumptions under sections 138 and 139 of the NI Act favor the holder, shifting the burden to the accused to rebut the claims of liability.
The presumption of consideration under Section 139 of the N.I. Act shifts the burden to the accused to prove non-existence of debt, which was not done in this case.
Dishonour of cheque – As soon as complainant discharges burden to prove that instrument was issued by accused for discharge of debt, presumptive device under Section 139 of Act helps shifting burden ....
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