Friendly Loan Not Legally Enforceable Debt U/S 138 NI Act If There Is No Consideration To Form Contract: Jharkhand High Court

Rushil Batra

21 May 2026 2:45 PM IST

  • Friendly Loan Not Legally Enforceable Debt U/S 138 NI Act If There Is No Consideration To Form Contract: Jharkhand High Court

    The Jharkhand High Court has upheld the acquittal of two accused persons in a cheque dishonour case, holding that a “friendly transaction” between parties does not automatically constitute a legally enforceable debt under Section 138 of the Negotiable Instruments Act. A Single Judge Bench of Justice Rajesh Kumar was hearing an acquittal appeal filed by the complainant challenging the...

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