Judicial Discretion - The Legal Chamber

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...

The Supreme Court addressed the issue of interest rates on the enhanced valuation of shares sold by the appellants to the State of Rajasthan. The Court held that while the transaction was commercial, the interest rate must balance fairness and financial impact. It awarded simple interest at 6% per annum from 1975 till the decree date and 9% thereafter, modifying the High Court's order. The decision emphasized equitable considerations under Section 34 of the CPC, ensuring reasonable compensation without undue burden on the State. Facts of The Case: The case originated from a dispute over the valuation of shares sold by the appellants, I.K. Merchants Pvt. Ltd. & Ors., to the State of Rajasthan in 1973. The shares belonged to Rajasthan State Mines and Minerals Ltd. (formerly B...

Tag: Judicial Discretion

“Cheque Bounce Case: Supreme Court Modifies Sentence, Imposes 32 Lakh Fine Instead of Jail”