Complainant Fails to Disclose Loan in ITR or Prove Financial Capacity: Gujarat HC Denies Appeal in...

The Gujarat High Court has denied an appeal in a cheque bounce case of Rs 15 lakh, citing the complainant's failure to prove their financial capacity to lend such a large amount. The court observed that the complainant had not disclosed the alleged loan in their Income Tax Returns (ITR), which cast a serious doubt on the genuineness of the transaction. To succeed in a cheque bounce case, the complainant must prove that the cheque was issued for a legally enforceable debt. The court held that when the complainant's own financial capacity to advance the loan is questionable and there is no documentary proof of the transaction, the presumption in favor of the cheque holder is rebutted. This ruling underscores the importance for a lender to have a clean financial record and documentary evidence to prove the existence of a debt in such cases.