S. 138 NI Act | 'Capacity To Give Loan Not Shown, Contradictions In Statements' : Supreme Court Upholds Acquittal In Cheque Dishonour Case

The Supreme Court upheld the acquittal in a cheque dishonour case under Section 138 of the Negotiable Instruments Act, citing insufficient evidence of the complainant's capacity to give a loan. The court pointed out contradictions in the complainant's statements and the absence of proof regarding the loan's disbursement. This judgment reinforces the importance of providing clear evidence to substantiate claims in cheque dishonour cases, emphasizing that mere allegations are insufficient without supporting documentation or credible testimony. The ruling highlights the need for due diligence in financial transactions and legal proceedings under the NI Act.