Section 139 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 139 is one sentence long, but it shapes how a cheque bounce case is argued. It presumes, "unless the contrary is proved", that the holder of a cheque received it for the discharge of a debt or liability. If you are on either side of a returned cheque and want the position assessed, our legal dispute resolution team can review the papers. The text below is the consolidated text of the Act consulted (position stated as from 26 December 2015).
It is presumed, unless the contrary is proved, that the holder of a cheque "of the nature referred to in section 138" received it for the discharge, in whole or in part, of any debt or other liability. The presumption is rebuttable: the words "unless the contrary is proved" say so. Section 138's Explanation separately says "debt or other liability" means a legally enforceable debt or other liability.
What section 139 says
The full text is: "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."
Break it into parts.
| Part of the text | Meaning |
|---|---|
| "It shall be presumed" | The court is told to start from this assumption; the holder does not first have to prove it |
| "unless the contrary is proved" | The assumption stands only until the opposite is proved |
| "the holder of a cheque" | The person holding the cheque |
| "of the nature referred to in section 138" | A cheque drawn on an account for payment of money to another person for a debt or liability, as described in section 138 |
| "for the discharge, in whole or in part, of any debt or other liability" | What the holder is presumed to have received it for |
The text does not say how much or what kind of proof is needed to prove the contrary, and this article adds no standard of proof.
Section 139 and the Explanation to section 138
Section 138 applies to a cheque given for "any debt or other liability", and its Explanation says that for the purposes of the section this "means a legally enforceable debt or other liability". Section 139 itself speaks only of "any debt or other liability" and does not repeat the word "legally enforceable". The two provisions are separate pieces of text and a reader should keep them side by side: the Explanation fixes what kind of debt or liability the offence needs, and section 139 supplies a presumption about the purpose for which the holder received the cheque. How the two operate together in a particular case is a matter for the court; the Act itself says nothing more.
Section 139 and section 118
The Act also has a general rule for all negotiable instruments. Under section 118, "until the contrary is proved", it is presumed that every negotiable instrument was made or drawn for consideration (clause (a)), and that the holder is a holder in due course (clause (g)). The proviso to clause (g) shifts the burden of proving holder-in-due-course status onto the holder where the instrument was obtained by an offence or fraud, or for unlawful consideration.
So there are two layers of presumption in a cheque case: the general ones in section 118 for every negotiable instrument, and the particular one in section 139 for the purpose of a cheque of the nature referred to in section 138. Each has its own wording; they should not be merged into one rule. The Act's provision on an instrument made without consideration is in section 43.
Where section 139 sits in the cheque bounce sections
Sections 138 to 147 form the part of the Act dealing with dishonour of cheques. Near section 139 you will find:
- Section 140, which says it is no defence that the drawer had no reason to believe the cheque might be dishonoured.
- Section 146, under which the court presumes the fact of dishonour on production of the bank's slip or memo bearing the official mark, until it is disproved.
- Section 141, for a drawer that is a company.
Section 139 deals with why the cheque was received. Section 146 deals with the fact of dishonour. They are different presumptions.
What section 139 does not do
- It does not remove the three conditions of the proviso to section 138: presentment within six months or validity, written notice within thirty days, and failure to pay within fifteen days. Those periods are in our post on section 138.
- It does not say the drawer may not lead evidence; the words "unless the contrary is proved" assume that the contrary can be proved.
- It does not state what evidence is enough; the text is silent.
Work out your dates
A presumption helps only if the proviso conditions were met in time. Before you rely on section 139, list the cheque date, presentment date, date you learned of the return, date of the notice and date the drawer received it, and test them with our cheque bounce notice calculator.
Common mistakes
- Treating the presumption as proof of the debt; the text makes it a presumption, and the contrary may be proved.
- Reading section 139 as if it replaced the Explanation to section 138; the Explanation separately requires a legally enforceable debt or liability.
- Confusing section 118 (all instruments) with section 139 (a cheque of the nature in section 138).
- Assuming that the presumption excuses missing the notice period.
Need help with a cheque dispute?
Whether a debt exists and what the papers show can decide a case. Our legal dispute resolution service helps you organise the cheque, bank memo, notice and correspondence before you act or reply.
Key takeaways
- Section 139 presumes the holder received the cheque for a debt or liability, unless the contrary is proved.
- It applies to a cheque of the nature referred to in section 138.
- The Explanation to section 138 separately requires a legally enforceable debt or other liability.
- Section 118 gives general presumptions for all negotiable instruments; section 146 presumes the fact of dishonour.
Read next
- Section 138: cheque bounce offence
- Section 141: offences by companies
- Interim compensation under section 143A
- Defence in a section 138 case
Disclaimer: Based on the consolidated text of the Negotiable Instruments Act, 1881 consulted (stated as from 26 December 2015), as read on 2 October 2026. Later amendments and procedural law should be checked in their current form. This article is general information, not legal advice.