Court can presume that cheque was issued as consideration for legally enforceable debt, once accused admits his signature thereon

Statutory presumption drawn under Negotiable Instruments Act mandates that, once the signature(s) of an accused on the cheque/negotiable instrument are established, then these ‘reverse onus’ clauses become operative. In such situations, obligation shifts upon accused to discharge presumption imposed upon him.

Even a blank cheque leaf, voluntarily signed and handed over by the accused, which is towards some payment, would attract presumption as to legally enforceable debt, in the absence of any cogent evidence to show that the cheque was not issued in discharge of a debt.

In case at hand, Accused admitted his signatures on both Cheque and Deed of Undertaking and had thus acknowledged his liability. Once accused had admitted his signature on cheque and Deed, Court ought to presume that cheque was issued as consideration for legally enforceable debt, as 'reverse onus' clauses becomes operative. Obligation then shifts upon accused to discharge presumption imposed upon him.