Voluntarily Signed Blank Cheque Will Attract Presumption U/S 139 NI Act: SC

The Supreme Court of India recently reiterated that a voluntarily signed blank cheque leaf would attract the presumption under Section 139 of the Negotiable Instruments Act 1881.

Bench comprising Justice BV Nagarathna and Justice Augustine George Masih said that in the absence of any cogent evidence to show that the cheque was not issued in discharge of the debt, the presumption would hold good.

The Court was hearing a plea against an order passed by the Madras High Court.

The appellant's contention was that the respondent (accused) had sought to seek a forensic opinion to compare the contents of the cheque with the signature of the petitioner and the same was wholly unnecessary having regard to the judgment of this Court.

The Court observed that, "It is not in dispute that in the instant case, the accused has signed the cheque."

The Court noted that the only dispute in the instant case was with regard to the age of the ink used in making the signature on the cheque and the age of the signature and contents of the cheque.

The Court found that the application filed by the accused before the trial Court was wholly frivolous and that the trial Court had rightly rejected the said application.

The Court said that, "But in our view, the High Court ought not to have allowed the said application and thereby allowed the revision petition of the respondent-accused."

The appeal was allowed and the order passed by the High Court was set aside.