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      Statutory notice to the drawer in cheque dishonour matters is...

      Cheque dishonour claims require valid drawer notice and proof of loan capacity before presumptions can sustain conviction

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      Indian LawsJune 24, 2026Case LawsHC
      Statutory notice to the drawer in cheque dishonour matters is mandatory, and service on a third person does not satisfy the notice requirement discussed here. The text also states that the complainant must lay a factual foundation for the presumption of a legally enforceable debt by showing financial capacity and source of funds for the alleged loan. Where the complainant admitted no bank record, income-tax return, or other proof of funds, the presumption under the negotiable instruments law was treated as unrebutted only if that foundational proof existed; on the described facts, the defects in notice and proof of capacity were treated as fatal to the conviction under cheque dishonour law.

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      ActsIncome Tax