Tuesday, November 18, 2025

Cheque Dishonour under S.138 of Negotiable Instruments Act, 1881 and Legal Presumption

*Cheque Dishonour under S.138 of Negotiable Instruments Act, 1881 and Legal Presumption*

Hon'ble Supreme Court has held that the *consequences of scuttling the criminal process at a pre-trial stage can be grave and irreparable. Quashing proceedings at preliminary stages* will result in finality without the parties having had an opportunity to adduce evidence and the consequence then is that the proper forum i.e., the trial Court is ousted from weighing the material evidence. If this is allowed, the accused may be given an un-merited advantage in the criminal process. Also because of the legal presumption, when the cheque and the signature are not disputed by the appellant, the balance of convenience at this stage is in favour of the complainant/prosecution, as the accused will have due opportunity to adduce defence evidence during the trial, to rebut the presumption. For more details refer *Rathish Babu Unnikrishnan v. State NCTD [2022] GCtR 2004 (SC)*.

Full text decision available at https://api.sci.gov.in/supremecourt/2020/12802/12802_2020_10_1501_35304_Judgement_26-Apr-2022.pdf

No comments:

Post a Comment

Property Deeds and Criminal Liability : Supreme Court Analyses the Effect of Law

Property Deeds and Criminal Liability : Supreme Court Analyses the Effect of Law "Adjudication of forgery, cheating or use of forged do...