The Supreme Court has overturned a Bombay High Court order that had acquitted an accused in a cheque dishonour case, restoring his conviction under Section 138 of the Negotiable Instruments Act (NI Act).
A Bench of Justices Manmohan and N.V. Anjaria held that once a cheque’s execution is admitted, statutory presumptions under Sections 118 and 139 of the NI Act come into play, and the burden lies on the accused to disprove liability. In this case, the accused failed to produce any evidence to challenge the complainant’s financial capacity or to support his defence that a blank cheque had been issued.
The Court also criticised the High Court for exceeding its revisional jurisdiction by overturning concurrent findings of the trial and sessions courts without showing perversity in their reasoning. The conviction was restored, and the accused was directed to repay ₹7.5 lakh in 15 monthly instalments.
Beyond the individual case, the Court addressed the massive backlog of cheque bounce cases, which constitute nearly half the trial court pendency in some states. To tackle delays, it issued fresh directions, including:
- Service of summons via electronic means and dasti delivery;
- Dedicated online payment systems through QR codes/UPI to enable early settlement;
- Mandatory case synopses in a standardised format;
- Revised compounding cost structure to encourage early resolution.
Calling cheque bounce cases “civil disputes in criminal form,” the Court emphasised that the law’s object is to ensure financial discipline and restore public trust in cheques as a reliable mode of payment.
- Case: Sanjabij Tari Vs Kishore S. Borcar & Anr
- Citation: 2025 INSC 1158
- Bench: J N.V. Anjaria, J Manmohan
- Judgement Date: 25/09/2025
Click HERE for full Judgment
Written By: Shubh Tewari
Lawcutor 