05/08/2026
βοΈ Supreme Court Says: A Bounced Cheque is a Serious Promise, Not Just Paper
Case: Kuntegowda vs. Thurubaiah | 2026 INSC 790
Here's what happened π
π° A person lent βΉ4.5 lakh to a friend as a personal loan
π The friend gave a cheque to repay it
β The cheque bounced β "insufficient funds"
β
Trial Court found him guilty
β
Sessions Court agreed
β High Court let him off β saying the lender couldn't prove he had that much money to lend
Supreme Court stepped in and said: Not so fast.
π The big takeaway:
Once someone admits it's their signature on the cheque, the LAW assumes it was for a genuine debt. It's now on THEM to prove otherwise β with real evidence, not just excuses.
Also, simply asking "how did the lender afford to lend this much money?" isn't enough to escape liability, if the accused doesn't back it up with proof.
π Result: Conviction restored. The accused has to pay up.
Simple lesson for everyone: If you sign a cheque, be ready to honour it. The law protects the person who trusted you.