Cheque Dishonour Case: Accused Faces Jail and Heavy Compensation for Defaulting on Debt - High Court of Himachal Pradesh

Introduction to the Case In a recent legal judgment, the issue of dishonor of cheques under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) was addressed, focusing on the presumption of liability and the role of evidence in proving the offense. The judgment highlights the principles regarding the presumption of a legally enforceable debt when a cheque is issued, even if it was initially presented as security. Facts…