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Kerala High Court: Presumption Under Section 139 NI Act, 1881 Applies to Guarantor Cheques Also - (09 Jan 2020)

BANKING

Kerala High Court has held that the presumption under Section 139 of Negotiable Instruments Act, 1881(NI Act, 1881) applies even to a cheque issued by a guarantor. The Court held that a guarantor's cheque is also a cheque regarded under Section 138 of the Negotiable Instruments Act, 1881, as it is being issued in discharge of legally enforceable debt.

Tags : KERALA HIGH COURT   PRESUMPTION  

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