Cheque Dishonour - The Legal Chamber

This Supreme Court judgment reinforces the statutory presumptions under Sections 118 and 139 of the Negotiable Instruments Act, 1881, which arise upon admission of a cheque's execution. It clarifies that these presumptions are rebuttable, but the initial onus is on the accused. The ruling also establishes that a violation of Section 269SS of the Income Tax Act, 1961, does not render a debt legally unenforceable for proceedings under Section 138 of the NI Act. Facts Of The Case: The case originated from a complaint under Section 138 of the Negotiable Instruments Act, 1881, filed by the appellant, Sanjabij Tari, concerning a cheque for Rs. 6,00,000 issued by the respondent, Kishore S. Borcar. The cheque was dishonoured due to insufficient funds. The appellant contended that the amoun...

The Supreme Court held that a criminal complaint can be amended post-cognizance if it cures a curable infirmity and causes no prejudice to the accused. The amendment should not alter the complaint's fundamental nature. The test of prejudice is the cardinal factor, and procedural rules are subservient to the interests of justice. Facts Of The Case: The appellant, Bansal Milk Chilling Centre, filed a complaint under Section 138 of the Negotiable Instruments Act, 1881, alleging that three cheques issued by the respondents, Rana Milk Food Private Ltd., for a sum of ₹14 lakhs were dishonored. The complaint stated the transaction was for the purchase of "Desi Ghee (milk products)." After summons were issued and the complainant's chief-examination was concluded, the appellant sought to amend th...

Tag: Cheque Dishonour

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