Dishonour Of Cheque Against Valid Loan Sufficient To Prosecute U/S 138 NI Act, Drawee Need Not Have Money Lending License: Rajasthan HC

In a recent ruling, the Rajasthan High Court addressed a cheque bounce case involving the legality of money lending without a license under Section 138 of the Negotiable Instruments Act. The court emphasized that a money lending license is mandatory for transactions falling under the Act's purview, highlighting its significance in legal compliance. This decision underscores the importance of adhering to regulatory requirements and the implications of non-compliance in financial transactions governed by Section 138. The judgment provides clarity on the legal framework surrounding cheque bounce cases and the necessity of proper licensing in such financial dealings.