[Section 138 NI Act cases] Complainant not required to show nature of transaction or source of fund due to Section 139 presumption: Supreme Court

The Court held that due to the presumption under Section 139, once the signature and cheque are not in dispute, it will be presumed that the cheque was issued for discharge of debt or liability in favour of complainant.
Justice MR Shah, Justice BV Nagarathna and Supreme Court
Justice MR Shah, Justice BV Nagarathna and Supreme Court

The Supreme Court recently held that in a cheque-bounce case under Section 138 of the Negotiable Instruments Act (NI Act), the complainant is not required to spell out in the complaint, the nature of transaction or source of fund since the onus is on the accused to prove that the cheque was issued not towards a debt or liability [P Rasiya vs Abdul Nazer and anr].

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