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Section 146: Bank's slip prima facie evidence of certain facts

Negotiable Instruments Act • Official Statutory Text & Practice Guide

Statutory Regulation
Legal Standard
Competent Court / Tribunal
Act 1881
Section 145 All 148 Sections of Negotiable Instruments Act Section 147

Legal Commentary & Landmark Judgments: Section 146

Section 146 enacts a statutory rebuttable presumption regarding bank memos, providing that the court shall presume the fact of dishonour upon production of the banker's slip or memo having the official mark or seal denoting dishonour.

  • Prima Facie Evidence of Dishonour: The bank return memo bearing the official stamp or clearing seal is prima facie proof of the fact of dishonour.
  • Dispenses with Bank Witness: The complainant is not required to summon bank officials in every trial to prove the fact of dishonour or insufficient funds.
  • Rebuttable Presumption: The drawer can rebut the presumption only by producing official bank ledgers proving that funds were actually present or the memo was forged.
Key Landmark Precedents:
  • K.N. Beena v. Muniyappan (2001) 8 SCC 458: The Supreme Court held that the bank memo produced under Section 146 creates an immediate statutory presumption that the cheque was returned for the reasons stated therein.
  • M.M.T.C. Ltd. v. Medchl Chemicals and Pharma (P) Ltd. (2002) 1 SCC 234: Affirmed that production of the bank return memo satisfies the initial burden on the complainant regarding dishonour under Section 146.
Courtroom Practice & Strategic Litigation Guidance:

Complainants should ensure the bank return memo has the bank's official CTS seal or digital branch authentication. Once exhibited, Section 146 completely eliminates the need to summon bank witnesses, saving months of trial delays.

Section 145 All 148 Sections of Negotiable Instruments Act Section 147