Query: I had taken a loan of ₹ 5 lakhs from a private financer. At the time of advancing loan, the financer had also obtained security cheques from me. Although, the loan amount with interest has been repaid, but the financer did not return the security cheques. He misused the same by filing a false case under Negotiable Instruments Act. How should, I defend myself.

Answer: Issuance of security cheques is a good defense which is also legally acceptable. But, you have to prove that  the cheques in qestion were given by way of security and the same have been misused by the complainant. As there is a presumption under section 139 of Negotiable Instrument Act that there exists a legally enforceable debt or liability once signatures on the cheques are admitted. To rebut such a  presumption, you are required to lead evidence that full amount of the loan which was due and payable to the financier has been paid by you and security cheques have been misused by him. If no such evidence is led by you and proved, then in that eventuality your defense will not be believable by the court. Instead, the court will take it as if you have failed to rebut the presumption U/S139 of the Negotiable Instruments Act and the judgement may be pronounced against you.