Statutory Presumption Under NI Act Not Applicable If Complainant Can't Prove Financial Capacity: Jammu & Kashmir High Court

The High Court of Jammu and Kashmir and Ladakh, through a detailed judgment by Justice Rajesh Sekhri, has ruled that the failure of a complainant to establish their financial capacity to extend a substantial loan can gravely undermine a case filed under the Negotiable Instruments Act, 1881. The Court stated that when the accused raises a plausible and consistent defence, the presumptions under Section 118 and Section 139 of the…