Chapter XVII - Of Penalties in Case of Dishonour of Certain Cheques
Section 139
Section 139: presumption in favour of holder
Unless the contrary is proved, section 139 presumes that the holder received a cheque of the section 138 kind towards a debt or other liability, wholly or partly.
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Need advice on Section 139?
This article is for general information. Refer to the Negotiable Instruments Act, 1881 official text for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
It shall be presumed, unless the contrary is proved, that the holder of a cheque received the cheque of the nature referred to in section 138 for the discharge, in whole or in part, of any debt or other liability.
Applicability and limits
In a Section 138 cheque matter, the court starts with a presumption that the holder received the cheque towards a debt or other liability, wholly or partly.
The presumption is rebuttable: Section 139 begins “unless the contrary is proved”. It does not remove the separate elements of Section 138.
Hypothetical example
Hypothetical: a payee relies on a signed cheque after dishonour. The drawer produces records showing the cheque was security for a transaction that never arose; the presumption and contrary proof must be assessed.
Evidence and decision flow
Identify the cheque and Section 138 context.
Preserve the transaction and debt records.
Separate the statutory presumption from any evidence offered to rebut it.
Practical checklist
Do
- Preserve the original or bank image of the cheque.
- Keep the transaction and payment ledger.
- Assess contrary evidence in its actual context.
Avoid
- Do not describe the presumption as conclusive.
- Do not assume section 139 alone proves every element of section 138.
Glossary
- Presumption
- A starting inference applied unless contrary proof is supplied.
- Holder
- Person entitled in their own name to possess and recover the cheque amount.
Frequently asked questions
Is the presumption conclusive?
No. The statutory words allow the contrary to be proved.
Does Section 139 alone prove every Section 138 element?
No. Section 138 has separate presentment, dishonour and notice requirements.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026