Negotiable Instrument Act covers not only debt but also covers Later Liability

Advertisement Madan Tiwari Vs State of Chhattisgarh (Chhattisgarh High Court) Purport of the special law under the Negotiable Instruments Act is to ensure that the promise to pay is abided by the person so promising. The provision under Section 139 of the NI Act is that it shall be presumed that the holder of a cheque received the cheque of the nature referred to in Section 138 of NI Act for the discharge, in whole or in part, of any debt or other liability. In light of above, the signing of cheque by the applicant indicate that he admitted his liability, and he has not rebutted the presu...