Section 139 presumption and cheque-bounce evidence

Section 139 presumes, unless the contrary is proved, that the holder received the cheque of the kind referred to in section 138 towards discharge, wholly or partly, of a debt or other liability. The qualification about contrary proof matters. A presumption is an evidentiary starting point established by law, not a statement that every allegation is permanently beyond challenge.

Section 118 contains a wider set of presumptions concerning consideration, date, acceptance, transfer, indorsements, stamp and holder-in-due-course status. Read the relevant presumption rather than merging them into one rule about signatures. Transaction records, repayments, communications and the circumstances of issue can matter to the disputed question. Which facts establish the starting point and what is sufficient to rebut it depend on the evidence and applicable judicial interpretation.

The presumption does not erase presentation, notice or payment-opportunity conditions under section 138, or the complaint requirements under section 142. Section 140 separately excludes the defence that the drawer had no reason to believe, when issuing the cheque, that it might be dishonoured. That specific excluded defence should not be confused with saying every other factual or legal issue is irrelevant.