financial capacity - 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 affirmed the divorce decree on grounds of cruelty, finding the marriage had irretrievably broken down. While not interfering with the divorce, the Court exercised its powers under Article 142 to direct the husband to pay ₹10 Lakh for his daughter's marriage, enforcing a father's financial duty irrespective of marital status. Facts Of The Case: The parties were married in May 1996 and have two children. In 2009, the husband filed for divorce on the grounds of cruelty, alleging various instances of mental cruelty by the wife. The wife countered these allegations, stating that she was the one subjected to cruelty, and subsequently initiated proceedings against the husband under the Domestic Violence Act. During these proceedings, the husband made a claim that the children ...

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Supreme Court Reinstates Conviction in Cheque Bounce Case, Slams High Court’s Interference

After Long Legal Battle, Supreme Court Ends Marriage but Secures Daughter’s Future