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The High Court could not have discharged the respondents of the said liability at the threshold. The agreement recorded that post-dated cheques towards payment of installment of loan principal and interest were given by way of security. The question therein was whether post-dated cheque issued by way of advance payment for a purchase order could be considered for discharge of legally enforceable debt. It is for the accused to rebut the said presumption, though accused need not adduce his own evidence and can rely upon the material submitted by the complainant. The text of this part of the agreement is quoted in the later part of this order. In Rangappa versus Sri Mohan[9], this Court held that once issuance of a cheque and signature thereon are admitted, presumption of a legally enforceable debt in favour of the holder of the cheque arises. Free for one month and pay only if you like it.

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