Topic
The Gujarat High Court ruled that income-tax returns are irrelevant to establish a legally enforceable debt under Section 138 of the Negotiable Instruments Act, even when other transactional evidence exists. The judgment reinforces that documentary proof of debt must align with the statutory requirements of the NI Act, not ancillary financial records.
Supreme Court rules that the statutory presumption of liability under Section 139 of the Negotiable Instruments Act cannot be rebutted during the pre-trial stage. The drawer must present evidence to rebut the presumption only during trial, ensuring complaints under Section 138 proceed to merit-based adjudication.
MP High Court rules that a cheque issued as security for a third party's liability, without a legally enforceable debt against the accused, does not constitute an offence under Section 138 of the Negotiable Instruments Act. The judgment clarifies that mere issuance of a security cheque, absent compliance with statutory conditions, cannot sustain criminal proceedings.
Bombay High Court holds that cheques issued as security for a loan remain prosecutable under Section 138 NI Act if legally enforceable debt exists and rebuttal evidence is absent.