S. 138 NI Act | Complainant Has No Onus To Prove Financial Capacity At The Threshold : Supreme Court

The Supreme Court reiterated that a complainant in a Section 138 NI Act case has no onus to prove their financial capacity at the threshold. The court emphasized that the focus should be on the dishonored cheque and the underlying debt. This ruling clarifies the legal requirements in cheque dishonor cases, streamlining the proceedings. It ensures that creditors are not subjected to unnecessary scrutiny regarding their financial standing. The decision reinforces the legal framework for enforcing financial obligations through cheque transactions.