negotiable insrument.ppt

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PRESENTATIONPRESENTATIONON:ON:

SECTIONSECTION 138138 of the Negotiable of the Negotiable

Instruments Act 1881Instruments Act 1881andand the the

AmendmentsAmendments of the Act of the Act

An Overview by: An Overview by:

Vijyant NigamVijyant NigamLaw OfficerLaw Officer

Under the thankful Under the thankful cooperation and guidance of:cooperation and guidance of:

Syt. Ashish BabuSyt. Ashish BabuSri. B. BhushanSri. B. BhushanSri. Prem JhaSri. Prem Jha

Sri. Mahesh PareekSri. Mahesh Pareek&&

Sri. Manoj SinsinwarSri. Manoj Sinsinwar

[[ActAct No. 26 of Year No. 26 of Year 18811881, dated 9-12-, dated 9-12-18811881]]

Negotiable Negotiable Instruments Instruments

Act 1881Act 1881Came into force on 1Came into force on 1stst March, 1882 March, 1882

the said the said act was act was enacted to enacted to definedefine and to and to provide the law provide the law relating torelating topromissory notes,promissory notes,

bills of exchange bills of exchange

and chequesand cheques ! !

Promissory Note:Promissory Note:

Section 4Section 4 of the Act defines: of the Act defines: A Promissory Note is an A Promissory Note is an

instrument in writing containing instrument in writing containing an unconditional undertaking an unconditional undertaking signed by the maker to pay a signed by the maker to pay a certain sum of money only to, or certain sum of money only to, or to the order of a certain person, to the order of a certain person, or to the bearer of the or to the bearer of the instrument.instrument.

Bill of Exchange:Bill of Exchange:

Section 5Section 5 of the Act defines: of the Act defines: A bill of exchange is an instrument in A bill of exchange is an instrument in

writing containing an unconditional writing containing an unconditional order, signed by the maker, directing order, signed by the maker, directing a certain person to pay a certain sum a certain person to pay a certain sum of money only to, or to the order of, a of money only to, or to the order of, a certain person or to the bearer or to certain person or to the bearer or to the bearer of the instrument the bearer of the instrument

Cheque:Cheque:

Section 6Section 6 of the Act defines: of the Act defines: A cheque is a bill of exchange A cheque is a bill of exchange

drawn on a specified banker and drawn on a specified banker and not expressed to be payable not expressed to be payable otherwise than on demand.otherwise than on demand.

Or we can say a cheque is a bill Or we can say a cheque is a bill of exchange which is payable on of exchange which is payable on demand and which is drawn on demand and which is drawn on a specified banker.a specified banker.

But the cheques have assumed But the cheques have assumed great importance these days due great importance these days due to rapid industrialisation followed to rapid industrialisation followed by the economic liberalisation or by the economic liberalisation or

because of the increasing because of the increasing participation in the international participation in the international commercial activities. Increasing commercial activities. Increasing

use of the cheque called for use of the cheque called for strengthening the reliability of strengthening the reliability of payment when made through payment when made through

cheque so that cheques could be cheque so that cheques could be used with more credibility and used with more credibility and

better reliance.better reliance.

Two things were of great concern Two things were of great concern viz.viz., such provisions were , such provisions were

required to be made that prove to required to be made that prove to be of deterrent effect to the others be of deterrent effect to the others

and in case of dishonouring of and in case of dishonouring of cheque, the amount is paid to the cheque, the amount is paid to the

payee as early as possible payee as early as possible together with interest and together with interest and

compensation.compensation.

In other words, the emphasis was on In other words, the emphasis was on the speedy justice, exemplary and the speedy justice, exemplary and

compensatory justicecompensatory justice

FromFrom 1 1stst April 1989 April 1989((1988 Amendment1988 Amendment))

If a person issues a cheque and it If a person issues a cheque and it got dishonoured the person is said to got dishonoured the person is said to

have done have done an offencean offence..

Whatever be the reason for the Whatever be the reason for the dishonour weather for insufficiency dishonour weather for insufficiency of funds or whatever, the same does of funds or whatever, the same does not matter.not matter.

1988 Amendment1988 Amendment

towards achieving the goal towards achieving the goal on the on the speedy justice, exemplary and speedy justice, exemplary and

compensatory justicecompensatory justice new new provisions with enlightened provisions with enlightened

jurisprudential foundation were jurisprudential foundation were engrafted and put on the statute engrafted and put on the statute

book in the year 1988 in the form of book in the year 1988 in the form of institution ofinstitution of

Chapter XVIIChapter XVIIto the Negotiable Instruments Act, to the Negotiable Instruments Act,

18811881

Chapter Chapter XVIIXVIIThe said chapter was incorporated for penalties The said chapter was incorporated for penalties

in case of dishonour of cheques due to in case of dishonour of cheques due to insufficiency of funds in the account of the insufficiency of funds in the account of the

drawer of the cheque or whatsoever (like stop drawer of the cheque or whatsoever (like stop payment etc.).payment etc.).

ObjectObject

These provisions were incorporated with a view These provisions were incorporated with a view to encourage the culture of use of cheques to encourage the culture of use of cheques

and enhancing the credibility of the instrument.and enhancing the credibility of the instrument.

The larger objective The larger objective is to protect the is to protect the

interest of honest interest of honest people dealing in people dealing in

cheques.cheques.

1988 Amendment1988 Amendment

DRAWER DRAWER BEWAREBEWAREBecause, by the said Because, by the said

amendment the amendment the DISHONOURED CHEQUE DISHONOURED CHEQUE is being TREATED as an is being TREATED as an

CRIMINAL OFFENCECRIMINAL OFFENCE

Certain new sections included in Certain new sections included in the Negotiable Instruments Actthe Negotiable Instruments Act

through thethrough the Chapter XVIIChapter XVII and are numbered as:and are numbered as:

Section Section 138138, , 139, 139,

140 and 141140 and 141

New sections in New sections in the Chapter XVIIthe Chapter XVII

Section 138Section 138: :

this section defines the this section defines the dishonour of cheque is an dishonour of cheque is an offence. The same also offence. The same also

defines the main ingredients defines the main ingredients which have to be fulfilled to which have to be fulfilled to

made it, an offence.made it, an offence.

Basic Presumption of Basic Presumption of Section 138:Section 138:

Dishonour Dishonour of Cheque of Cheque

is an is an OffenceOffence

Five basicFive basic ingredients of ingredients of section section 138138 which shall have which shall have

to be fulfilled for creating an offence for dishonour to be fulfilled for creating an offence for dishonour of a chequeof a cheque cheque should have been drawn by the drawer in payment of a cheque should have been drawn by the drawer in payment of a

legal liability to discharge the existing debt. legal liability to discharge the existing debt. Cheque given by Cheque given by way of gift would not come under this provision.way of gift would not come under this provision.

The cheque should be presented within the validity period i.e. The cheque should be presented within the validity period i.e. within six months or three months as the case may be. within six months or three months as the case may be. Common sense demands that the cheque should reach the Common sense demands that the cheque should reach the drawer bank within the validity period.drawer bank within the validity period.

Return memo by the drawer bank to the drawee bank and Return memo by the drawer bank to the drawee bank and subsequently by the drawee bank to the drawee reporting that subsequently by the drawee bank to the drawee reporting that the cheque got unpaid is must. the cheque got unpaid is must. Reasons for dishonour is not Reasons for dishonour is not material at this stage.material at this stage.

Giving notice to the drawer of the cheque by the drawee or the Giving notice to the drawer of the cheque by the drawee or the holder of the cheque in due course is must for making the said holder of the cheque in due course is must for making the said payment within fifteen days. payment within fifteen days. The notice must be sent to drawer The notice must be sent to drawer within 15 days within 15 days (amended to 30 days by the 2002 amendment) (amended to 30 days by the 2002 amendment) of the receipt of the information from the drawee bank that the of the receipt of the information from the drawee bank that the cheque got dishonoured.cheque got dishonoured.

The The drawer of the cheque fails to make the payment drawer of the cheque fails to make the payment of the said of the said amount of money to the payee or to the holder in due course amount of money to the payee or to the holder in due course within 15 days of the receipt of the said notice. within 15 days of the receipt of the said notice.

Supreme Court also held in K. Bhaskaran Supreme Court also held in K. Bhaskaran Vs. Sankaran Vaidyan Balan:Vs. Sankaran Vaidyan Balan:

It’s not necessary that all the five acts should have been It’s not necessary that all the five acts should have been perpetrated at the same locality. It is possible that each of perpetrated at the same locality. It is possible that each of those five acts could be done at five different areas.those five acts could be done at five different areas.

In this context a reference to In this context a reference to section 178 (d) of the Cr. P. C. is section 178 (d) of the Cr. P. C. is useful:useful:

Where the offence consists of Where the offence consists of several acts done in different local several acts done in different local

areas, it may be inquired into of areas, it may be inquired into of tried by a court having jurisdiction tried by a court having jurisdiction

over any of such local areas.over any of such local areas.

Moreover the section Moreover the section 138138 also also provides for the provides for the punishmentpunishment for for dishonour of cheque:dishonour of cheque:

vizviz. . imprisonmentimprisonment for a for a term which may extend to term which may extend to one yearone year, or with , or with finefine

which may extend to twice which may extend to twice the amount of the cheque, the amount of the cheque,

or with or with bothboth..

(the term of punishment extended to (the term of punishment extended to two yearstwo years vide 2002 amendment )vide 2002 amendment )

New sections in the New sections in the Chapter XVIIChapter XVII

Section 139Section 139::

By this section it shall be By this section it shall be presumed that the holder of presumed that the holder of

a cheque received the a cheque received the cheque for the discharge of cheque for the discharge of some liability or any debt.some liability or any debt.

New sections in the New sections in the Chapter XVIIChapter XVII

Section 140Section 140::

This section says that defence in This section says that defence in the prosecution under section the prosecution under section

138 shall not be available to the 138 shall not be available to the drawer if the ingredients of 138 drawer if the ingredients of 138

are completed.are completed.

New sections in the New sections in the Chapter XVIIChapter XVIISection 141Section 141::

This section defines that if an This section defines that if an offence offence done by any companydone by any company, the person/s , the person/s

shall be held liable who were in shall be held liable who were in charge and responsible to the charge and responsible to the

company, for the conduct of the company, for the conduct of the business of the company, at the time business of the company, at the time

the offence under section138 was the offence under section138 was committed.committed.

1988 amendment1988 amendment

The The objectobject of the of the amendment was, “to amendment was, “to enhance the acceptability enhance the acceptability of cheques in settlement of cheques in settlement of liabilities by making the of liabilities by making the drawer liable for penalties drawer liable for penalties in case of bouncing of in case of bouncing of cheques”.cheques”.

Supreme CourtSupreme Court examined:examined:

The provisions of sections The provisions of sections 138 and 141 of the Act 138 and 141 of the Act and noted that and noted that mere mere dishonour of a cheque dishonour of a cheque would not raise a causewould not raise a cause of of action unless the payee makes a action unless the payee makes a demand in writing to the drawer of the demand in writing to the drawer of the cheque for the payment and drawer cheque for the payment and drawer fails to make the payment of the said fails to make the payment of the said amount of money to the payee.amount of money to the payee.

Section 141:Section 141:The chapter XVII of the Act gained much The chapter XVII of the Act gained much

importance among companies due to the importance among companies due to the

section section 141141 because, this is the section, because, this is the section, through which the persons shall be held through which the persons shall be held liable for the conduct / offence committed liable for the conduct / offence committed under the Act by a company.under the Act by a company.

The section also gave a reason to think twice The section also gave a reason to think twice to the responsible person/s of a company to the responsible person/s of a company who makes commitment for and on behalf who makes commitment for and on behalf of the company to pay someone through of the company to pay someone through negotiable instrument/s. negotiable instrument/s.

More Over From 06.02.2003More Over From 06.02.2003(by the (by the 2002 amendment2002 amendment))

The said offence will be punishable The said offence will be punishable

with with imprisonmentimprisonment

for a term up to for a term up to 2 years2 years oror with with

finefine twice the amount of the twice the amount of the

cheque cheque oror bothbothunder section 138 of the Actunder section 138 of the Act

2002 2002 AmendmentAmendmentAnother amendment came into force from Another amendment came into force from 06.02.200306.02.2003 as as

Negotiable Instruments (Amendment and Negotiable Instruments (Amendment and Miscellaneous Provisions) Act, 2002Miscellaneous Provisions) Act, 2002

Through the said amendment:Through the said amendment:Sections Sections 6, 64, 81 and 896, 64, 81 and 89 have been have been

amended due to entrance of the electronic amended due to entrance of the electronic technology in the Negotiable Instruments.technology in the Negotiable Instruments.

Section Section 138(a)138(a) amended regarding the amended regarding the term term of imprisonment increased to Two yearsof imprisonment increased to Two years from One year and through from One year and through 138(b)138(b) the the period of giving notice of demand to the period of giving notice of demand to the drawer increaseddrawer increased from fifteen days from fifteen days to thirty to thirty daysdays..

2002 2002 AmendmentAmendment

Section Section 142(b)142(b) amended by the insertion of a amended by the insertion of a proviso: “proviso: “Provided that the cognizance of a Provided that the cognizance of a complaint may be taken by the court after complaint may be taken by the court after the prescribed period, if the complainant the prescribed period, if the complainant satisfies the court that he had sufficient satisfies the court that he had sufficient cause for not making a complaint within cause for not making a complaint within such period.such period.””

Note: Prior to this amendment there was no Note: Prior to this amendment there was no provision in the Act for the condonation of provision in the Act for the condonation of delay in preferring the complaint under delay in preferring the complaint under section 138.section 138.

2002 2002 AmendmentAmendment

Moreover new sections from Moreover new sections from 143 to 143 to 147147 have been have been inserted for the inserted for the speedy disposal of the cases under speedy disposal of the cases under section 138section 138..

Note: The aforesaid sections were Note: The aforesaid sections were inserted to boost up the speed of the inserted to boost up the speed of the proceedings in courts in the cases proceedings in courts in the cases under section 138 of the Actunder section 138 of the Act

New sections New sections inserted through inserted through the 2002 the 2002 amendment:amendment:Section 143Section 143::

This section provides the power to This section provides the power to courts to try cases, under section courts to try cases, under section 138, summarily and the trial of the 138, summarily and the trial of the case, as far as practicable, should case, as far as practicable, should

be continued from day to day until its be continued from day to day until its conclusion and endeavour is to be conclusion and endeavour is to be

made to conclude the trial within six made to conclude the trial within six months.months.


This section provides that the This section provides that the copy of copy of summon/s may also be summon/s may also be issued by speed post or byissued by speed post or by such such

courier servicescourier services as are as are approved by a court of session.approved by a court of session.


This section provides that the This section provides that the evidenceevidence of a complainant of a complainant may be given bymay be given by him in him in an affidavitan affidavit and that will be and that will be

read in evidence, and the court, if it read in evidence, and the court, if it thinks fit, shall on application of the thinks fit, shall on application of the

prosecution or the accused, summon prosecution or the accused, summon and examine any person who is and examine any person who is

giving evidence on affidavit.giving evidence on affidavit.


This section provides the This section provides the court court shall presume the fact of shall presume the fact of dishonourdishonour of a cheque on of a cheque on

production of Bank’s slip or production of Bank’s slip or memo having thereon the official memo having thereon the official mark denoting that the cheque mark denoting that the cheque

has been dishonoured.has been dishonoured.


Every Every offenceoffence punishable under punishable under this Act this Act shall be compoundableshall be compoundable..

Which means that a compromise Which means that a compromise in the matters under section 138 in the matters under section 138

can be made between the can be made between the complainant and the accused at complainant and the accused at

any stage of the case.any stage of the case.

Meaning of Compoundable Meaning of Compoundable in 138 N. I. Act:in 138 N. I. Act: The case may be closed and the accused The case may be closed and the accused

may be discharged, by the magistrate but may be discharged, by the magistrate but only on his sole discretion, if some only on his sole discretion, if some settlement executed between the settlement executed between the complainant and the accused and the complainant and the accused and the complainant gave his statement before the complainant gave his statement before the magistrate that he want to close the matter magistrate that he want to close the matter and they (complainant and the accused) and they (complainant and the accused) have settled upon a certain conditions and have settled upon a certain conditions and now the complainant has no more now the complainant has no more grievance against the accused.grievance against the accused.

Compounding can be done at any stage of Compounding can be done at any stage of the case whether it is before the original the case whether it is before the original magistrate or before any appellate magistrate or before any appellate authority.authority.

Some frequently asked queries on the chapter Some frequently asked queries on the chapter of section 138 of the act:of section 138 of the act:

What is Pay order and Holder in Due CourseWhat is Pay order and Holder in Due Course?? Supreme court held in the matter of Supreme court held in the matter of Punjab and Sindh Punjab and Sindh

Bank Vs Vinkar Sahakari Bank Ltd. and ors.Bank Vs Vinkar Sahakari Bank Ltd. and ors. (AIR 2001 (AIR 2001 SC 3641, 2001 AIR SCW 3709)SC 3641, 2001 AIR SCW 3709)

Pay order is also a negotiable Instrument.Pay order is also a negotiable Instrument. 21. Section 142 of the Act envisages a complaint to be 21. Section 142 of the Act envisages a complaint to be

made in writing "either by the payee or the holder in due made in writing "either by the payee or the holder in due course of the cheque, as the case may be". course of the cheque, as the case may be". Section 8 of Section 8 of the Act defines "holder"the Act defines "holder" as any person entitled in his as any person entitled in his own name to the possession of the cheque and to receive own name to the possession of the cheque and to receive or recover the amount due thereon from the parties or recover the amount due thereon from the parties thereto. We have no doubt that complainant-bank was thereto. We have no doubt that complainant-bank was well within its right to possess the cheque and to receive well within its right to possess the cheque and to receive or recover the amount covered by the instrument. or recover the amount covered by the instrument. "Holder in due course" means a person who for "Holder in due course" means a person who for consideration became the possessor of a cheque if consideration became the possessor of a cheque if payable to bearer before the amount became payable. payable to bearer before the amount became payable. (vide S. 9).(vide S. 9).

22. In this context reference has to be made to S. 118(g) 22. In this context reference has to be made to S. 118(g) of the Act which contains a mandate that of the Act which contains a mandate that until the contrary until the contrary is proved the holder of a negotiable instrument shall be is proved the holder of a negotiable instrument shall be presumed to be a holder in due coursepresumed to be a holder in due course. .


Where does the Nominee Director Where does the Nominee Director StandStand??

Supreme Court observed in Punjab National Bank Supreme Court observed in Punjab National Bank Vs. Surendra Prasad Sinha (AIR 1992 SC 1815)Vs. Surendra Prasad Sinha (AIR 1992 SC 1815)

The answer is that a nominee director enjoys full The answer is that a nominee director enjoys full immunity under the newly enacted provisions of the immunity under the newly enacted provisions of the Negotiable instruments Act.Negotiable instruments Act.

Basically a Basically a Nominee Director is a person appointed Nominee Director is a person appointed in a company for observationin a company for observation by some other by some other company (mainly financial or governmental) whose company (mainly financial or governmental) whose interest involve in the business of the said companyinterest involve in the business of the said company

A nominee directorA nominee director whose position whose position isis purely non- purely non-executive in the board of a company executive in the board of a company fully fully protected against prosecution and harassment protected against prosecution and harassment under section 141under section 141..

The vicarious liability of a person for being The vicarious liability of a person for being prosecuted for an offence committed by a company prosecuted for an offence committed by a company arises if at the material time he was in charge of arises if at the material time he was in charge of and responsible to the company for the conduct of and responsible to the company for the conduct of its business.its business.


Weather a Non-Bailable Weather a Non-Bailable Warrant Can be issued for the Warrant Can be issued for the offence under section 138offence under section 138??

Madras High Court Observed:Madras High Court Observed: Personal liberty of a person is protected Personal liberty of a person is protected

under Article 21 of the Constitution Of under Article 21 of the Constitution Of India. Therefore a Non-Bailable warrant India. Therefore a Non-Bailable warrant shall not be issued under section 138 shall not be issued under section 138 cases unless it is absolutely necessary.cases unless it is absolutely necessary.

Considering that section 138 is a matter of Considering that section 138 is a matter of dispute between two individuals relating to dispute between two individuals relating to civil liabilities and the magistrate shall civil liabilities and the magistrate shall always use his discretion in favour of the always use his discretion in favour of the accused and issue only a Bailable Warant.accused and issue only a Bailable Warant.

The offence is BailableThe offence is Bailable..


Can second notice of demand Can second notice of demand from drawer gave a new from drawer gave a new cause to the draweecause to the drawee??

The answer is The answer is NO.NO. the drawee, of a cheque that is the drawee, of a cheque that is

dishonoured, has only one life i.e. dishonoured, has only one life i.e. only one cause for action that he has only one cause for action that he has to use within the prescribed time and to use within the prescribed time and file the case. Else, this will become a file the case. Else, this will become a technical defence that the court will technical defence that the court will have to uphold.have to uphold.

It’s a technical defence for the It’s a technical defence for the accused.accused.


Post-Dated Cheque (PDC) is a Post-Dated Cheque (PDC) is a Valid InstrumentValid Instrument??

The answer is The answer is YesYes.. Supreme Court in Ashok Yashwant Supreme Court in Ashok Yashwant

Badve Vs Surendra Madhavrao Badve Vs Surendra Madhavrao Nighojkar and anr. (Nighojkar and anr. (AIR 2001 SC 1315AIR 2001 SC 1315) ) has resolved the issue.has resolved the issue.

A PDC is a cheque that bears a date A PDC is a cheque that bears a date that is after the date when the that is after the date when the cheque is made out, signed and cheque is made out, signed and delivered and is given to the creditor delivered and is given to the creditor well in advance so that he can well in advance so that he can present it on such due date.present it on such due date.


Shall Section 138 apply in case of a Shall Section 138 apply in case of a Disnonoured Cheque drawn without any liability Disnonoured Cheque drawn without any liability to payto pay??

Cheque should have been drawn by the Cheque should have been drawn by the drawer in payment of a legal liability to drawer in payment of a legal liability to discharge the existing debt.discharge the existing debt.

Supreme Court in C. Anthony Vs K. Supreme Court in C. Anthony Vs K. Raghavan Nair (Raghavan Nair (2002 SOL Case No.550 2002 SOL Case No.550 supremecourtonline.comsupremecourtonline.com) has resolved the issue.) has resolved the issue.

It is necessary for the drawee/ complainant It is necessary for the drawee/ complainant to prove before the court that the cheque to prove before the court that the cheque was received by him in the discharge of was received by him in the discharge of some liability.some liability.

If complainant could not prove that the If complainant could not prove that the cheque was in the discharge of some cheque was in the discharge of some liability, the complaint will be dismissed and liability, the complaint will be dismissed and the accused will be acquitted.the accused will be acquitted.


Who can take cognizance of the Who can take cognizance of the offence under section 138offence under section 138??

As per the As per the Section 142 (c)Section 142 (c) of the Act. of the Act. No court inferior to a Metropolitan No court inferior to a Metropolitan

Magistrate or a Judicial Magistrate can try Magistrate or a Judicial Magistrate can try the offence.the offence.

Supreme Court Case:Supreme Court Case:K. BhaskaranK. Bhaskaran

VsVsSankaran Vaidyan BalanSankaran Vaidyan Balan

A case between two brothers for A case between two brothers for the offence under section138:the offence under section138:

In this case the court held that theIn this case the court held that the

burden is on the accused to burden is on the accused to rebut the presumption of rebut the presumption of

section 139 that holder of a section 139 that holder of a cheque received it for cheque received it for

discharge of any debt or discharge of any debt or liabilityliability..

Section 29(2) of Cr. P. C.:Section 29(2) of Cr. P. C.:Fine can not be more than Fine can not be more than

Rs.5,000/-Rs.5,000/-

In the previous case the Supreme Court In the previous case the Supreme Court also held that the appellate court shall also held that the appellate court shall not inflict greater punishment for the not inflict greater punishment for the offence which in its opinion the offence which in its opinion the accused has committed, then might accused has committed, then might have been inflicted for that offence by have been inflicted for that offence by the court passing the order or the court passing the order or sentence under appeal.sentence under appeal.

In this context a reference to section In this context a reference to section 29(2) of the Cr. P. C. is necessary as it 29(2) of the Cr. P. C. is necessary as it contains a limitation for the magistrate contains a limitation for the magistrate of first class in the matter of imposing of first class in the matter of imposing fine as a sentence or as a part of the fine as a sentence or as a part of the sentence.sentence.

Goaplast V/s Shri Chico Goaplast V/s Shri Chico Ursula D’ SouzaUrsula D’ Souza Stop Payment InstructionsStop Payment Instructions

will not take a case out of the will not take a case out of the purview of Section 138, it has purview of Section 138, it has

elaborated on the reasons why this elaborated on the reasons why this should be so. More importantly, it should be so. More importantly, it would follow from the judgments would follow from the judgments affirming this position that the affirming this position that the

court will give great credence to court will give great credence to the presumption that cheques the presumption that cheques

have been issued in discharge of a have been issued in discharge of a debt or liability and will not accept debt or liability and will not accept

any argument to the contrary.any argument to the contrary.

Documents

negotiable insrument.ppt