Section 139 of NI Act does presume existence of a legally enforceable debt or liability

Presumption mandated by section 139 of Negotiable Instruments Act, 1881 does include existence of a legally enforceable debt or liability

When an accused has to rebut the presumption under section 139, the standard of proof for doing so is that of `preponderance of probabilities’; therefore, if the accused is able to raise a probable defense which creates doubts about the existence of a legally enforceable debt or liability; the prosecution can fail.

 SUPREME COURT OF INDIA

Rangappa Vs. Sri Mohan,

Criminal Appeal No. 1020 of 2010,

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