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In a dishonored cheque case, the SC overturned the High Court's decision, ruling that the complainant is not obligated at the threshold to prove financial capacity to make payments for which the cheque was issued. The Court clarified that Sections 118 and 139 of the Negotiable Instruments Act place the burden on the accused to rebut the statutory presumption, not on the complainant to establish detailed evidence of transactions. The SC found the complainant had successfully established a case under Section 138, and the High Court erred in overturning concurrent findings of guilt by the Trial Court and Appellate Court. The impugned order was set aside and the appeal allowed.
In a dishonored cheque case, the SC overturned the High Court's decision, ruling that the complainant is not obligated at the threshold to prove financial capacity to make payments for which the cheque was issued. The Court clarified that Sections 118 and 139 of the Negotiable Instruments Act place the burden on the accused to rebut the statutory presumption, not on the complainant to establish detailed evidence of transactions. The SC found the complainant had successfully established a case under Section 138, and the High Court erred in overturning concurrent findings of guilt by the Trial Court and Appellate Court. The impugned order was set aside and the appeal allowed.
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