Supreme Court in Sanjabij Tari v. Kishore S. Borcar & Anr1
I. Introduction
Section 138 of the Negotiable Instruments Act, 1881 (“NI Act”) was introduced to enhance the credibility of cheque-based transactions and ensure financial discipline in commercial dealings by criminalising the dishonour of cheques issued towards the discharge of legally enforceable debts. However, over the years, prosecutions under Section 138 have constituted a substantial portion of the criminal caseload across courts in India, raising concerns regarding delay, procedural inefficiencies, and inconsistent approaches to the application of statutory presumptions.
In this context, the Supreme Court’s decision in Sanjabij Tari v. Kishore S. Borcar & Anr.2 assumes considerable significance. The judgment revisits key principles governing prosecutions under Section 138, including the operation of statutory presumptions under Sections 118 and 139 of the NI Act, the evidentiary burden on the accused, and the
