Cheque Dishonour | Defence That the Complainant Lacks Financial Capacity Should Be Raised in the Accused's Reply Notice: Supreme Court

The Supreme Court has clarified an important legal principle regarding cases under Section 138 of the Negotiable Instruments Act, 1881. The court held that the defense claiming that the complainant lacked the financial capacity to lend the loan should be specifically raised by the accused in their reply to the statutory demand notice. This ruling emphasizes that if the accused fails to raise this defense at that stage, they cannot…