Litigation Update: Supreme Court Issues Guidelines For Speedy Disposal Of Cheque Dishonour Cases

The Supreme Court (Court) on 25 September 2025, in Sanjabij Tari v. Kishore S. Borcar & Anr., examined the presumptions under the Negotiable Instruments Act, 1881 (NI Act) and clarified the law on the complainant's financial capacity in cheque dishonour cases. The Court also issued systemic directions to address the large backlog of Section 138 NI Act matters pending across trial courts.

Facts in Brief:

The complainant had advanced a friendly loan of ₹6,00,000, which was returned by a cheque that was dishonoured. The Trial Court and Sessions Court convicted the accused, but the Bombay High Court at Goa, in revision, acquitted him ex parte on the grounds that the complainant lacked the financial capacity to advance such a loan. The complainant appealed, contending that the High Court exceeded its revisional powers and disregarded the statutory presumptions under the NI Act.