The High Court considered whether dishonored cheques were given ...

CHIT: Court rules in favor of respondents in dishonored cheque case. Appellant failed to prove legally enforceable debt. Burden of proof on appellant.

Case Laws     Indian Laws

June 18, 2024

The High Court considered whether dishonored cheques were given for a legally enforceable debt. The appellant failed to prove the existence of a default by the respondents or that the cheques were for a valid debt. Without meeting the burden u/s 138, the appellant couldn't rely on u/s 139 presumption. The appellant must provide detailed account statements to establish a legally enforceable debt for a successful u/s 138 case. The respondents disputed the debt amount and claimed misuse of security cheques. Without proper evidence, the dishonor of cheques doesn't trigger u/s 138. The court upheld lower courts' decisions as the appellant failed to provide sufficient evidence. The appeal was dismissed.

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