Section 138 NI Act: Complainant Bound To Explain His Financial Capacity When It Is Questioned By The Accused: SC [Read Judgment]

Ashok Kini

9 April 2019 7:31 PM IST

"Court cannot insist on a person to lead negative evidence. The observation of the High Court that trial court's finding that the complainant failed to prove his financial capacity of lending money is perverse cannot be supported."

The Supreme Court has observed that a complainant in a cheque bounce case is bound to explain his financial capacity, when the same is questioned by the accused, by leading evidence to that effect. In this case (Basalingappa vs. MUudibasappa), the accused had questioned the financial capacity of the complainant. It was brought on record that, during the period from 2009 to November,...

Section 138 NI Act: Complainant Bound To Explain His Financial Capacity When It Is Questioned By The Accused: SC [Read Judgment]

Ashok Kini

"Court cannot insist on a person to lead negative evidence. The observation of the High Court that trial court's finding that the complainant failed to prove his financial capacity of lending money is perverse cannot be supported."

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