Important Points for Giving a Statement on Behalf of the Accused in an U/S 138 of NI ACT Case

When an accused gives a statement in a complaint under Section 138 of the Negotiable Instruments (NI) Act, the manner, timing, and content of the statement play a critical role in influencing the court’s decision. Section 313 of the Code of Criminal Procedure (CrPC) provides an opportunity for the accused to explain the circumstances appearing against him. Although such a statement is not substantive evidence, it is essential for rebutting presumptions under Sections 118 and 139 of the NI Act.​

Understanding Section 138 and Legal Presumptions

In cases of cheque dishonour, once the complainant establishes that the cheque was issued and later dishonoured, presumptions arise under Sections 118(a) and 139 of the NI Act that the cheque was issued for a legally enforceable debt or liability. The onus then shifts to the accused to rebut these presumptions using probable defence, either through cross-examination or by leading evidence in his favour.​

Key Points While Giving a Statement with the help of best lawyer : 

The statement under Section 313 CrPC or evidence affidavit, if opted under Section 145(2) of the NI Act, must focus on specific legal and factual aspects that create reasonable doubt about the complainant’s version:

1. Denial of Legally Enforceable Debt – The accused should clearly state that there was no legitimate debt or liability at the time of cheque issuance. Supporting documents or inconsistencies in the complainant’s version should be highlighted to strengthen this defence.​

2. Questioning Financial Capacity of the Complainant – If the complainant claims that a large sum was advanced as a loan, the accused may question whether the complainant had the financial ability to lend that amount. Courts have accepted this as a valid and “probable defence” once doubts are raised about the complainant’s source of funds.​

3. Explanation for Issuance of Cheque – The accused can explain that the cheque was issued for a different purpose—such as security, loan formalities, or as a blank cheque given in trust—and not for discharging any recoverable liability.​

4. Proof of Repayment or Settlement – If any amount has already been paid, receipts, bank statements, or communication records should be mentioned to show partial or complete repayment before or after the cheque’s presentation.

5. Voluntariness and Lawful Conduct – The accused should ensure that his statement is voluntary and consistent, avoiding contradictions that may appear during cross-examination. Any coercion or misunderstanding at the time of cheque issuance should be clarified.​

Conclusion

A statement with the help of an expert advocate,  on behalf of the accused in a cheque bounce case should be precise, factual, and legally informed. It should demonstrate that the cheque was not issued against an enforceable debt, that the complainant’s claim lacks evidentiary support, or that the transaction was misrepresented. By focusing on these crucial aspects, the accused can effectively rebut statutory presumptions and present a credible defence under the NI Act framework.​ You can consult free an experienced advocate for your case. 

Here are four landmark Supreme Court judgments that significantly shape the interpretation and procedure under Section 138 of the Negotiable Instruments Act, 1881 (NI Act). These judgments continue to guide both defense and prosecution in cheque dishonor cases.

1. M/s Meters and Instruments Pvt. Ltd. v. Kanchan Mehta (2017) 7 SCC 525

2. Harman Electronics Pvt. Ltd. v. National Panasonic India Pvt. Ltd. (2009) 1 SCC 720

3. Kaveri Plastics v. Mahdoom Bawa Bahrudeen Noorul (2025)

4. Supreme Court Guidelines on Cheque Bounce Backlog (2025)