Reply To: Bouncing of Cheque under Negotiable Instrument Act, 1881

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advtanmoy
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Ascertained and crystallized debt or other liability if exists on the date when the cheque is presented

In Credential Leasing & Credits Ltd. vs Shruti Investments & Anr. (2015) SCCOnLine Del 10061, Hon’ble Delhi High Court has held that the scope of section 138 NI Act would cover cases where ascertained and crystallized debt or other liability exists on the date when the cheque is presented and not only to the cases where ascertained and crystallized debt or other liability exists on the date on which it was delivered to the seller as a post- dated cheque or as a current cheque with a credit period.

29. Further as held in V.S. Yadav v. Reena , a bare denial of passing consideration or merely pleading that the cheques were given as security will not amount to rebut the presumption u/s 138 read with s.118 of the Act. Further, the defence pleaded in the notice of accusation and under the statement u/s 313 read with s.281 Cr.P.C do not assume the character of defence evidence. The accused has to substantiate and probabilize his defence by bringing forth facts and circumstances, which he may choose to do so, either from the evidence of the complainant itself or from his own independent evidence.