Video length: 1 min 29 sec · Published on YouTube: 9 September 2026 · Law Chambers of Mridul Jindal
What is this video about?
A short explainer on a common situation: you lent a friend cash, received a cheque that bounced, and are now told you never had the money or that a cash loan above ₹20,000 is illegal under Section 269SS of the Income Tax Act.
Key points
- Once the signature on the cheque is admitted, Sections 118 and 139 of the NI Act presume it was given for a legally enforceable debt.
- In Sanjabij Tari v. Kishore S. Borcar (2025 INSC 1158), the Supreme Court held that a cash loan above ₹20,000 remains enforceable; breaching Section 269SS only attracts a tax penalty under Section 271D.
- A bare claim that the lender had no money is not a defence; the accused must produce real evidence.
- The Court also issued directions to speed up cheque bounce cases, including cheaper early settlement.
Read the full article: Gave a Friendly Loan and the Cheque Bounced? Supreme Court’s New Rules on Section 138 · हिंदी में पढ़ें
This video and summary are general legal information, not legal advice for your specific case. Law and procedure change; please consult an advocate before acting.
