Case Law Analysis
|Himachal Pradesh High Court
Section 138 NI Act | Presumption of Consideration Invalid If Original Contract Is Novated or Substituted : Himachal Pradesh HC
Himachal Pradesh High Court rules that the statutory presumption of consideration under Section 138 of the Negotiable Instruments Act does not apply if the underlying contract is novated or substituted. The ruling clarifies that cheque bounce prosecutions require proof of an enforceable debt at the time of issuance, impacting creditors relying on statutory presumptions in debt recovery cases.