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Cheque Bounce Liability and Presumption of Debt Under Section 138 of Negotiable Instruments Act, 1881 Explained: Bengaluru Court

04 Apr 2026 3 min read
Cheque Bounce Liability and Presumption of Debt Under Section 138 of Negotiable Instruments Act, 1881 Explained: Bengaluru Court

The Court of Small Causes and Additional Chief Judicial Magistrate, Bengaluru, presided by Sri H.P. Mohan Kumar, delivered an important judgment on 18 February 2026 in a cheque bounce case under Section 138 Negotiable Instruments Act 1881. The case involved a financial dispute where the complainant accused the accused of defaulting on repayment of a large investment and issuing a cheque that was dishonoured. Background of investment and financial transaction…

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