#cheque validity

The Himachal Pradesh High Court ruled that a multi-city cheque presented at a non-home branch exceeding RBI's ₹50,000 cap cannot sustain a criminal prosecution under Section 138 NI Act, even if the debt is admitted. This holding clarifies the intersection of RBI policy and cheque dishonour prosecutions, impacting banking litigation strategies.

The Bombay High Court set aside an appellate order that dismissed a Section 138 NI Act complaint on grounds of cheque validity, holding that the lower court erred by ignoring crucial bank ledger evidence proving timely presentation. The ruling reinforces that documentary proof of cheque presentation within the validity period is essential for establishing liability under the NI Act, impacting creditors and businesses relying on cheque-based transactions.