Section 146 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 146 tells the Court what to do when the complainant produces the bank's slip or memo showing that the cheque was dishonoured: presume the fact of dishonour unless and until it is disproved. As per the consolidated text consulted, the section is a single sentence, and it is printed twice in the copy with identical wording.
In every proceeding under the Chapter, on production of the bank's slip or memo bearing the official mark denoting that the cheque has been dishonoured, the Court shall presume the fact of dishonour, unless and until that fact is disproved. The presumption is about dishonour, not about the debt, the notice or the other conditions of the offence. It is rebuttable: the drawer may disprove it.
A printing note first
The copy consulted prints Section 146 twice, at two places, with identical text. It is read once here. No difference in wording was found between the two prints.
The section speaks of "every proceeding under this Chapter". The copy does not print where the Chapter begins, so this article gives no Chapter number; the text consulted places the Chapter on dishonour of cheques at ss.138 onwards.
What Section 146 says
The text: "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."
Pull out the parts:
- "The Court shall". The presumption is mandatory once the condition is met.
- "In respect of every proceeding under this Chapter". It applies across the Chapter's proceedings, not only at one stage.
- "On production of bank's slip or memo". The complainant must produce the bank's slip or memo.
- "Having thereon the official mark denoting that the cheque has been dishonoured". The slip or memo must carry the official mark of dishonour.
- "Presume the fact of dishonour". What is presumed is that the cheque was dishonoured.
- "Unless and until such fact is disproved". The presumption is rebuttable.
What is, and is not, presumed
Section 146 is narrow. It removes the need for the complainant to prove by other means that the bank returned the cheque, once the marked slip or memo is produced. The offence in Section 138 has several parts: the cheque drawn for a debt or liability, its return unpaid for the reasons stated, presentment within the period, a written demand notice within the period, and non-payment within the later period. Section 146 speaks only to the fact of dishonour.
| Question | Section 146 |
|---|---|
| Is dishonour presumed? | Yes, on production of the marked slip or memo |
| Who produces the slip or memo? | The text does not say who, only "on production" |
| Is the presumption final? | No. "Unless and until such fact is disproved" |
| Does it presume a legally enforceable debt? | Not in this section. See Section 139 |
| Does it presume that notice was given in time? | Not in this section |
| Does it fix the reason for dishonour? | The text speaks of "the official mark denoting that the cheque has been dishonoured". It does not say the mark states the reason |
A similar presumption on proof of protest appears in Section 119; Section 146 is the cheque-case counterpart in the Chapter on dishonour of cheques.
Why the return memo matters to the payee
For a payee, the return memo is the first piece of paper in a cheque-bounce case. It starts the clock on the notice: the notice of demand is to be given within thirty days of receipt of information from the bank about the return, as printed in Section 138. Section 146 then makes the same memo useful in court. If you are a payee, keep the original memo, the cheque and the envelope or record showing when you received the bank's information. A recovery notice prepared on the basis of those papers is easier to defend than one built from memory. A note on spelling: the Act writes "indorse"; "endorse" is the common spelling.
For the drawer, the point is the opposite: the presumption is open to disproof. Our guide on defence in a Section 138 case discusses grounds and strategy.
A worked example
Example. Naman Industries deposits a cheque drawn by Omkar Steels, and the bank returns it with a memo carrying the official mark of dishonour. When Naman Industries files a complaint, it produces the bank's memo. Under Section 146 the Court shall presume the fact of dishonour. Omkar Steels may still try to show that the cheque was in fact honoured or never dishonoured; the presumption lasts only "unless and until such fact is disproved". Whether the debt was legally enforceable, whether the notice was in time, and the other conditions in Section 138 remain to be dealt with on their own terms.
Points to watch
- The official mark. The slip or memo must have "the official mark denoting that the cheque has been dishonoured". A bare note without that mark may not trigger the presumption on the words of the section.
- Dishonour only. The presumption is about dishonour.
- Rebuttable. The drawer may disprove dishonour.
- Procedure. The text does not say when the memo is to be produced, how it is proved or how it is tendered; these are matters of current procedure, and this section does not refer to the Code of Criminal Procedure, 1973. Check the current procedural law and the rules of the court.
- Printed twice. The duplicate print in the copy is identical.
Need help with a returned-cheque file?
The return memo, the cheque and the dates of receipt are the foundation of the demand notice and the complaint. If you want them reviewed before you send a notice, our recovery notice team can go through them with you.
Key takeaways
- On production of the bank's slip or memo with the official mark of dishonour, the Court shall presume the fact of dishonour.
- The presumption holds unless and until the fact is disproved.
- It covers dishonour only, not the debt, notice or the other conditions in Section 138.
- Section 146 is printed twice in the copy consulted with identical text.
Read next
- Section 145: evidence on affidavit in cheque bounce cases
- Section 147: cheque bounce offence is compoundable
- Section 138: cheque bounce (dishonour of cheque)
- Section 139: presumption of legally enforceable debt
Disclaimer: Based on a consolidated text of the Negotiable Instruments Act, 1881 stating the position as of 26 December 2015 and on the Negotiable Instruments (Amendment) Act, 2018, as consulted on 2 October 2026. Later amendments and current criminal procedure law should be checked. This article is general information, not legal advice; check the official text before acting.