Mere Denial Can't Rebut Cheque Bounce Presumption, Accused Must Produce Probable Evidence: Supreme Court

The Supreme Court on Tuesday ruled that simply denying liability is not enough to rebut the statutory presumptions available to a complainant in a cheque bounce case. Once the execution of a cheque or the signature on it is admitted, the burden shifts to the accused, who must place probable material on record to show that no legally enforceable debt or liability existed.A Division Bench of Justice B.V. Nagarathna and Justice Ujjal Bhuyan observed,"A bare denial of the passing of any...

Delay Condonation Under NI Act Cannot Be Used To Cure Fatal Defects: Supreme Court

The Supreme Court has ruled that the power to condone delay in taking cognizance of a complaint under the Negotiable Instruments Act cannot be used to cure a complaint suffering from a fatal defect. The court observed that such power cannot be invoked to circumvent the Act by allowing fatal defects to be rectified during the proceedings when the complaint itself deserved dismissal at the threshold.A Division Bench of Justices Manoj Misra and Vijay Bishnoi observed,"No doubt, the Court empowered...

Mere Denial Cannot Rebut Presumption Of Legally Enforceable Debt In Cheque Dishonour Cases: Supreme Court

The Supreme Court has recently ruled that an accused cannot rebut the statutory presumption arising from a dishonoured cheque by merely denying liability. Dismissing an appeal against a Karnataka High Court order remanding a cheque dishonour case for fresh consideration, the court observed that an accused must explain the circumstances in which the cheque was issued and how it came into the complainant's possession. It also noted that proving the complainant lacked the financial capacity to...

Lending Public Money Without Efforts To Recover It Is 'Not Acceptable'; SC Issues Notice On Plea Seeking Probe Into JKM Infra

Calling it a "deep-rooted nexus" between banks, Asset Reconstruction Companies (ARCs), and borrowers, the Supreme Court on Friday said it was "not acceptable" for public money to be lent and then not effectively recovered. The remarks came as the Court issued notice on a PIL seeking a court-monitored probe into the settlement of JKM Infra Projects Ltd's ₹1,537 crore debt for ₹73.50 crore through the ARC route. A vacation bench of Chief Justice Surya Kant and Justice V. Mohana heard the matter...

SC Refuses To Interfere With HC Orders Involving Law Firm In Chennai Metro Compensation Contempt Case

Observing that the case involved allegations of a "complete fraud played upon the judicial system," the Supreme Court on Tuesday declined to interfere with Madras High Court orders that brought law firm The Legal Attorneys and Barristers into contempt proceedings stemming from allegations that Samarpana Charitable Trust secured ₹13.18 crore in Chennai Metro Land acqusition compensation after concealing an existing mortgage and ongoing recovery proceedings from the Court.A bench comprising Chief...

SARFAESI Auction Timelines Are Mandatory, Not Directory; Unjustified Deviation Vitiates Sale: Supreme Court

The Supreme Court on Tuesday set aside a SARFAESI auction sale of a mortgaged property after finding that the successful bidder paid the balance sale consideration five days after the deadline fixed for payment and that there was no written agreement extending the time. Holding that the lapse constituted a "material irregularity going to the root of the matter," the court quashed the sale. A bench of Justice Dipankar Datta and Justice Augustine George Masih observed that the auction purchaser...

Supreme Court Says Criminal Prosecution After DRT-Recorded Loan Settlement Was Abuse of Process

The Supreme Court on Friday quashed criminal proceedings against a borrower accused of obtaining enhanced credit facilities using forged audit reports, holding that continuation of the prosecution would amount to an abuse of process after the loan account had been settled under a compromise approved by the bank, implemented by the parties and recorded before the Debts Recovery Tribunal (DRT). A Bench of Justices B.V. Nagarathna and Ujjal Bhuyan passed the judgment while allowing an appeal filed...

Supreme Court Issues Notice On Challenge To HC Order Quashing FIR Against HDFC Bank CEO Sashidhar Jagdishan

The Supreme Court on Friday issued notice in a challenge to the Bombay High Court's May 5, 2026, judgment quashing FIR against HDFC Bank Managing Director and Chief Executive Officer Sashidhar Jagdishan. The FIRs stemmed from allegations that Jagdishan colluded with certain former trustees of the Lilavati Kirtilal Mehta Medical Trust and allegedly received illegal payments of about Rs 2 Crore from trust funds. A Bench of Justices M.M. Sundresh and Nongmeikapam Kotiswar Singh remarked that it...

Supreme Court Refers To Larger Bench Whether IBC Moratorium Applies To Entire Cheque Bounce Proceedings Or Only Compensatory Aspect

The Supreme Court on Wednesday referred to a larger bench the question of whether insolvency moratorium protections under the Insolvency and Bankruptcy Code apply to cheque dishonor prosecutions, while expressing the view that the criminal component of such proceedings should not be halted during personal insolvency and bankruptcy proceedings. A bench of Justices J.B. Pardiwala and K.V. Viswanathan observed that the issue requires an “authoritative pronouncement” by a three-judge bench after...

Office-Bearers Can Face NI Act Prosecution If Complaint Shows Their Role In Transaction: Supreme Court

The Supreme Court on Tuesday held that criminal liability for cheque dishonour cannot be fastened on a person merely because they hold an office in a society, while making it clear that proceedings cannot be quashed at the threshold where the complaint discloses sufficient factual material linking them to the underlying transaction. A Bench of Justice Prashant Kumar Mishra and Justice N.V. Anjaria partly allowed an appeal filed by Mansi Finance (Chennai) Ltd against a Madras High Court order...

Supreme Court Orders No Coercive Steps In Plea Seeking Bar On NI Act Proceedings During Personal Insolvency

Another plea has been filed in the Supreme Court seeking a declaration that proceedings under the Negotiable Instruments Act and the Payment and Settlement Systems Act cannot continue against personal guarantors once the interim moratorium under the Insolvency and Bankruptcy Code is triggered.The plea has been filed by Karan Bhatia, suspended director of Uttam Cylinders Pvt Ltd and a personal guarantor for the company's loans. A Bench of Chief Justice Surya Kant, Justice Joymalya Bagchi and...

Banks 'Casual' In Granting Big Loans, Small Borrowers Face 'Borderline Harassment': Supreme Court

The Supreme Court on Tuesday criticised banks for what it described as a casual approach in sanctioning large loans to bigger entities while subjecting ordinary borrowers seeking small personal loans to stringent conditions and tedious procedures that may, in some cases, amount to “borderline harassment." A Bench of Justices Ahsanuddin Amanullah and R. Mahadevan clarified that it was not advocating any easing of lending norms, saying those matters were best left to the Reserve Bank of India and...