“Cheque Bounce Case: Supreme Court Modifies Sentence, Imposes 32 Lakh Fine Instead of Jail”
The Supreme Court held that the presumption under Sections 118 and 139 of the Negotiable Instruments Act, 1881, favors the complainant once the cheque's authenticity and signature are admitted. The accused must rebut this presumption with credible evidence, not mere denials. The High Court erred in requiring the complainant to prove financial capacity upfront. The Court reinstated the Trial Court's conviction but modified the sentence to a reduced fine, emphasizing the statutory presumption of liability for the cheque signatory. The judgment reaffirms the legal enforceability of cheques as discharge of debt under Section 138.
Facts of The Case:
The appellant, Ashok Singh, advanced a loan of ₹22 lakhs to respondent no. 2, Ravindra Pratap Singh, who issued a cheque for the same a...