The SC held that the complaint under Section 138 of the NI Act ...

Suppression of Material Facts in Response to Demand Notice Invalidates Section 138 NI Act Complaint

March 28, 2025

Case Laws Indian Laws SC

The SC held that the complaint under Section 138 of the NI Act was invalid due to suppression of material facts by the respondent, a Co-operative Credit Society. The respondent had concealed the appellant's reply dated 28th November 2016 and letter dated 13th December 2016, which requested documents related to an alleged overdraft facility of Rs.11,97,000/-. The respondent falsely claimed the appellant never responded to the demand notice regarding a dishonored cheque for Rs.27,27,460/-. The Court determined that initiating criminal proceedings while suppressing material facts constitutes abuse of process. The JMFC could properly consider this rebuttal to the Section 139 presumption at the process issuance stage. The SC set aside the HC's order and allowed the appeal.

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The SC held that the complaint under Section 138 of the NI Act ...

Suppression of Material Facts in Response to Demand Notice Invalidates Section 138 NI Act Complaint

March 28, 2025

Case Laws Indian Laws SC

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