Recent Important Supreme Court Judgments On Cheque Dishonour Under S.138 Negotiable Instruments Act

This article surveys several recent Supreme Court decisions interpreting Section 138 of the Negotiable Instruments Act, which deals with cheque dishonour. Key points include: the offence arises not merely on dishonour but on failure to pay after a demand notice within 15 days; once drawer admits signing the cheque the presumption shifts and complainant need not initially prove capacity to give loan; even if a cheque bounce case involves cash loans in violation of tax norms, the Court held the debt may still be enforceable; the drawer’s account being frozen later does not automatically disallow prosecution. This compilation highlights evolving jurisprudence on cheque bounce, presumption of liability, and limitations of defence in such cases.