Kerala HC says dishonoured cheque alone is not enough under NI Act
In short
The Kerala High Court said a bounced cheque alone is not enough to prove a legal debt under the NI Act. Taxscan said the complainant must also show the underlying deal and the liability.
That makes cheque-bounce cases harder if there is no other proof of the debt.
What the reporting says
The Kerala High Court ruled that a dishonoured cheque by itself is insufficient to prove a legally enforceable debt under the NI Act. Taxscan’s summary said the complainant must also establish the underlying transaction and liability, not just produce the bounced cheque. The ruling raises the evidentiary burden in cheque-bounce complaints.
Why it matters
The Kerala High Court ruled that a dishonoured cheque alone does not prove a legally enforceable debt under the NI Act. Taxscan’s summary said the complainant must establish the underlying transaction and liability beyond producing the cheque. The decision affects cheque-bounce cases by raising the proof needed before a court can treat the debt as enforceable.