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Under Section 139, when a cheque is dishonoured, it is presumed (unless the contrary is proved) that the holder received it:
AWithout consideration
BAs security only
CFor the discharge, in whole or part, of a debt or other liability
DAs a gift
Answer & Solution
Correct answer: C. For the discharge, in whole or part, of a debt or other liability
Section 139 raises a rebuttable presumption that the cheque was received for the discharge of a debt or other liability, shifting the evidential burden to the accused.
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