The question (15 marks)
Discuss the presumption under section 139 of the Negotiable Instruments Act 1881, the standard by which it may be rebutted, and its application to a cheque dishonoured on stop payment instructions. (15 marks)
MU Module 4, head 4.1; pack chapter on dishonour of a cheque under section 138.
Plan your answer on paper before you look at the authorities — issue first, then the rule, then apply it to these facts.
It tests Unit 4 · Negotiable Instruments and the Debt Recovery Tribunals of Law of Banking and Negotiable Instruments.
Authorities you will need
- Rangappa v. Sri Mohan
- Bharat Barrel & Drum Manufacturing Company v. Amin Chand Pyarelal
- M.M.T.C. Ltd. v. Medchl Chemicals & Pharma (P) Ltd.
- Goa Plast (Pvt.) Ltd. v. Chico Ursula D'Souza
- Laxmi Dyechem v. State of Gujarat
How an answer is marked
A full-marks answer names the issue in one line, states the rule with its section, cites the authority, applies it to these facts and concludes — in that order. The app's model answer for this question is written in exactly that shape, with a checklist to mark your own attempt against.