business 🏛️ Supreme Court on cheque bounce defense rule
The Supreme Court ruled that the accused must raise the defense of complainant's financial capacity in the initial reply. This decision was made on Tuesday, August 4th, while setting aside a Karnataka High Court acquittal. The case involved a Rs.4.5 lakh hand loan where the cheque bounced due to insufficient funds. The Court clarified that the complainant doesn't need to prove financial capacity to start the process. Consequently, the conviction of the accused under Section 138 of the NI Act was restored. ⚖️