Ashok Singh vs State Of Uttar Pradesh 2025 INSC 427 - S. 138 NI Act - Complainant's Financial Wherewithal
Negotiable Instruments Act 1881 - Section 138 - The onus is not on the complainant at the threshold to prove his capacity/financial wherewithal to make the payment in discharge of which the cheque is alleged to have been issued in his favour. Only if an objection is raised that the complainant was not in a financial position to pay the amount so claimed by him to have been given as a loan to the accused, only then the complainant would have to bring before the Court cogent material to indicate that he had the financial capacity and had actually advanced the amount in question by way of loan.(Para 22) The complainant has only to establish that the cheque was genuine, presented within time and upon it being dishonoured, due notice was sent within 30 days of such dishonour, to which re-payment must be received within 15 days, failing which a complaint can be preferred by the complainant within one month as contemplated under Section 142 (1)(b) of the Act- The foremost defence available to the accused is to deny the very liability to pay the amount for which the cheque was issued on the ground that it was not a ‘legally enforceable debt’ under the Act. (Para 15-16)
