NI Act, 1881: Accused Duty to Prove the Dishonoured Cheque for Purpose Other than Debt/ Liability
Pavan Diliprao Dike vs. Vishal Narendrabhai Parmar [12/07/2019]—In the referred case the Division Bench of the Hon’ble Supreme Court vide order dated 12/07/2019 held that mere inability to prove that the dishonoured cheque was given by the accused to the complainant to discharge the legal debt/liability does not dilute the liability of the accused under Section 138 of the NI Act. The Court further held that in terms of Section 139 of the NI Act there is a presumption in Complainant’s favour that the dishonoured cheque was for the discharge, in whole or in part, of any debt or other liability and it is the onus upon the accused to proof that the dishonoured cheque was not for the purpose of the debt/liability.
