Dishonour of Cheque--Bank Endorsement--Absence of Seal or Signature Does Not Invalidate Memo Generated Through Electronic Clearance System
Absence of a seal or signature on a bank endorsement does not invalidate a complaint under Section 138 of the Negotiable Instruments Act, 1881, where the endorsement contains all material particulars and is generated through electronic clearance systems. Under electronic clearance, physical seal and signature are not mandatory requirements. A bank memo carries a statutory presumption of dishonour under Section 146 of the Act unless disproved. Once execution of the cheque is admitted, the burden shifts to the accused under Section 139 to rebut the presumption. Technical objections to form cannot override substantive compliance with statutory requirements, particularly where the accused himself admitted the endorsement in cross-examination.
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