SC Holds Debt Arising from Cash Transaction Exceeding ₹20,000 (Violating IT Act) Can Still be ‘Legally Enforceable’ for Cheque Dishonour Cases
🏛️SUPREME COURT OF INDIA🏛️
SC Holds Debt Arising from Cash Transaction Exceeding ₹20,000 (Violating IT Act) Can Still be ‘Legally Enforceable’ for Cheque Dishonour Cases
Supreme Court recently set aside the Kerala High Court judgment in PC Hari v. Shine Varghese, which held that a debt created by a cash transaction above Rs.20,000 in violation of the Income Tax (IT) Act, 1961 cannot be considered as a “legally enforceable debt” under Section 138 of the Negotiable Instruments Act unless there is a valid explanation for the same.
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