Chapter XVII - Of Penalties in Case of Dishonour of Certain Cheques for Insufficiency of Funds in the Accounts
Section 146
Section 146: bank’s slip prima facie evidence of certain facts
Section 146 gives a bank slip or memo with the official dishonour mark a rebuttable evidentiary effect in Chapter XVII proceedings.
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Need advice on Section 146?
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
The Court shall, in respect of every proceeding under this Chapter, on production of Bank's slip or memo having thereon the official mark denoting that the cheque has been dishonoured, presume the fact of dishonour of such cheque, unless and until such fact is disproved.
Applicability and limits
In a Chapter XVII proceeding, a bank slip or memo bearing the official mark denoting dishonour is prima facie evidence of that fact unless disproved.
The slip proves dishonour only presumptively; it does not by itself prove a debt, timely notice or every other element of a Section 138 claim.
Hypothetical example
Hypothetical: a payee files a bank return memo marked “funds insufficient”. The memo supports the dishonour fact, while other transaction and notice records address remaining issues.
Evidence and decision flow
Retain the bank slip or memo and its official mark.
Match it to the cheque and return date.
Preserve separate proof for debt, presentment and notice issues.
Practical checklist
Do
- Keep the bank’s original return slip or memo and identify its official dishonour mark.
- Preserve the corresponding cheque details and presentation record.
- Treat the slip as evidence of dishonour, not proof of every other element of a Chapter XVII claim.
Avoid
- Do not treat the instrument label alone as conclusive; check the signed wording and related statutory conditions.
Glossary
- Prima facie evidence
- Evidence accepted for the stated fact unless rebutted.
- Official mark
- The bank’s mark on the slip or memo denoting dishonour.
Frequently asked questions
Does the bank memo prove the whole Section 138 case?
No. Section 146 addresses the fact of dishonour; the other statutory elements must still be established.
Can the bank memo be challenged?
Yes. Section 146 says the court presumes dishonour unless and until it is disproved.
Does the memo establish an enforceable debt?
No. It addresses dishonour, not all other elements.
Need help applying this provision to your situation?
Contact BizeneedLast updated 10 October 2026