DEFENCES AVAILABLE UNDER SECTION 138 OF THE NEGOTIABLE INSTRUMENTS ACT OF 1881
The Section 138 Negotiable Instruments Act of 1881 creates penalty for matters in which holder has drawn a cheque in favour of drawee with insufficient funds to his corresponding account. However, there can be instances where such holder of cheque has not intentionally acted in such a manner. Section 139 of Negotiable Instrument Act provides for presumption in favour of the holder that the cheque was issued for discharging an antecedent liability and presumption can be rebutted only by the person who drew the cheque. Hence, an accused under Section 138 matter can defend itself under Section 139 of the Act....
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