Section 146 NI Act: Bank's slip prima facie evidence of certain facts

Negotiable Instruments Act, 1881

Section 146 NI Act at a Glance

Section 146 NI Act requires the court, in every proceeding under Chapter XVII, to presume that a cheque was dishonoured when a bank's slip or memo bearing an official mark of dishonour is produced, unless and until that fact is disproved.

Section 146 NI Act Bare Act Text

146. Bank's slip prima facie evidence of certain facts.

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.

Section 146 NI Act in Simple Words

Section 146 NI Act creates a presumption about the dishonour of a cheque in every proceeding under Chapter XVII of the Negotiable Instruments Act, 1881. When a bank's slip or memo is produced that has on it the official mark denoting that the cheque has been dishonoured, the court must presume the fact of dishonour of that cheque.

The presumption holds unless and until the fact of dishonour is disproved.

When Section 146 NI Act Applies

  • The proceeding is under Chapter XVII of the Negotiable Instruments Act, 1881.
  • A bank's slip or memo bearing the official mark denoting that the cheque has been dishonoured is produced before the court.
  • The court must presume the fact of dishonour of the cheque, unless and until such fact is disproved.

Example of Section 146 NI Act

Kusum presents a cheque drawn by Salim to a bank in Salem, and the bank returns the cheque unpaid along with a bank return memo bearing the bank's official mark stating that the cheque has been dishonoured. In a proceeding under Chapter XVII of the Negotiable Instruments Act, 1881 before the court in Salem, Kusum produces this bank memo with the official mark. Under Section 146 NI Act, the court must presume the fact that the cheque was dishonoured, and this presumption holds unless and until such fact is disproved.

FAQs on Section 146 NI Act

What is Section 146 NI Act?▼

Section 146 NI Act is a presumption provision for cheque dishonour proceedings under Chapter XVII of the Negotiable Instruments Act, 1881. It requires the court to presume that a cheque has been dishonoured when a bank's slip or memo bearing the official mark of dishonour is produced, unless and until such fact is disproved.

What document triggers the presumption of dishonour under Section 146 NI Act?▼

A bank's slip or memo having on it the official mark denoting that the cheque has been dishonoured. Once this document is produced in a Chapter XVII proceeding, the court must presume the fact of dishonour.

Is the presumption of dishonour under Section 146 NI Act mandatory for the court?▼

Yes. Section 146 NI Act requires the court to presume the fact of dishonour of the cheque upon production of the marked bank's slip or memo, unless and until such fact is disproved.

Is the presumption under Section 146 NI Act conclusive?▼

No. Under Section 146 NI Act, the court presumes the fact of dishonour of the cheque only unless and until such fact is disproved.

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Sources: Bare Act Text, Negotiable Instruments Act, 1881 (India Code) ·