New Delhi, April 8 -- The Supreme Court of India has ruled that cheque dishonour complaints under Section 138 of the Negotiable Instruments Act, 1881 cannot be quashed at the pre-trial stage solely on the ground that the cheque was not issued for a legally enforceable debt.
A bench comprising J K Maheshwari and Atul S Chandurkar observed that once the basic ingredients of Section 138 are satisfied, the statutory presumption under Section 139 comes into effect and must be tested during trial.
The Court emphasised that determining whether a cheque was issued towards a legally enforceable debt is a matter of evidence and cannot be adjudicated at the preliminary stage without giving the complainant an opportunity to present their case.
It...