Conviction Under Section 138 NI Act Upheld, “Refer to Drawer” Cheque Return Held to Indicate Insufficient Funds and Blank Cheque Liability Valid: Delhi Sessions Court

The Court of Additional Sessions Judge-06, New Delhi District, Patiala House Courts, New Delhi, has dismissed a criminal appeal filed by Amit Dang and upheld his conviction under Section 138 of the Negotiable Instruments Act, 1881 (NI Act). The Court confirmed that issuance of signed blank cheques and their dishonour on presentation creates legal liability when presumption of debt is not rebutted. The Court further held that cheque return remarks…