Friday, August 26, 2022

Drawer Liable Even If Details Of Cheque Was Filled Up By Some Other Person; Handwriting Expert's Report Cannot Rebut Presumption U/s 139 NI Act: Supreme Court



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Negotiable Instruments Act, 1881 - Sections 138,139 - A drawer handing over a cheque signed by him is liable unless it is proved by adducing evidence at the trial that the cheque was not in discharge of a debt or liability. The evidence of a hand-writing expert on whether the accused had filled in the details in the cheque would be immaterial to determining the purpose for which the cheque was handed over. Therefore, no purpose is served by allowing the application for adducing the evidence of the hand-writing expert - The presumption which arises on the signing of the cheque cannot be rebutted merely by the report of a hand-writing expert. Even if the details in the cheque have not been filled up by the drawer but by another person, this is not relevant to the defense whether the cheque was issued towards payment of a debt or in the discharge of a liability. 

The Supreme Court observed that a drawer of a cheque is liable even if the details in the cheque have been filled up not by the drawer, but by some other person.

The presumption which arises on the signing of the cheque cannot be rebutted merely by the report of a hand-writing expert, the bench comprising Justices DY Chandrachud and AS Bopanna observed.

Referring to Section 139 NI Act, the Apex Court bench noted that a drawer who signs a 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 or in the discharge of a liability.

"For such a determination, the fact that the details in the cheque have been filled up not by the drawer, but by some other person would be immaterial. The presumption which arises on the signing of the cheque cannot be rebutted merely by the report of a hand-writing expert. Even if the details in the cheque have not been filled up by drawer but by another person, this is not relevant to the defense whether cheque was issued towards payment of a debt or in discharge of a liability."

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