Key Legal Updates

Disclaimer:
The updates and judgments shared on this page are for general informational purposes only. While we strive to provide accurate and timely references from the Supreme Court and High Courts, the summaries are not intended as legal advice. Readers are advised to consult a qualified legal professional for advice specific to their situation. Sachar Law Firm does not assume responsibility for any action taken based on the information provided here.

S.138 NI Act — Cheque Bounce Case Maintainable Even for Cash Loan Above ₹20,000
Supreme Court, 25 September 2025
👉 The Supreme Court set aside a Kerala High Court ruling and held that even if a debt arises from a cash transaction exceeding ₹20,000, a Section 138 cheque bounce case is maintainable, rejecting the restrictive view that cash loans above ₹20,000 are not “legally enforceable debts.”

No Pre-Cognizance Summons in Section 138 Cases
Supreme Court, 2025 (recent judgment)
👉 The Court held that issuing summons at the pre-cognizance stage is not mandatory in cheque dishonour complaints under Section 138 NI Act.

Rakesh Bhanot vs. Gurdas Agro Pvt Ltd — Cheque Bounce Proceedings & IBC Moratorium
Supreme Court, 1 April 2025
👉 The Court held that cheque bounce proceedings under Section 138 cannot be stayed by the moratorium imposed in insolvency proceedings under IBC, since Section 138 is a criminal remedy not barred by moratorium.

STC No. 1106 / Section 138 & Partnership Firm Notice Issue
Supreme Court, 14 July 2025 (2025 INSC 831)
👉 The Court held that when a cheque is issued by a partnership firm, the statutory notice and complaint must properly name the firm. If notice is sent only to individual partners without naming the firm, the complaint may be quashed.
api.sci.gov.in

K. Gopi v. Sub-Registrar and Others — Registration Alone Not Enough for Ownership
Supreme Court, 11 July 2025
👉 The Court emphasized that mere registration of property does not constitute proof of ownership; buyers must also show payment, possession, and title validity.
TaxTMI+1

Matrimonial Cases – Mutual Consent Divorce Cooling Period
Supreme Court: Amardeep Singh vs. Harveen Kaur, (2017) 8 SCC 746, decided on 12.09.2017
👉 The 6-month cooling-off period in mutual consent divorce can be waived by courts in appropriate cases.

Delay in Criminal Trial – Bail Rights
Supreme Court: Hussain vs. Union of India, (2017) 5 SCC 702, decided on 09.03.2017
👉 Long delay in trial is a ground for granting bail, ensuring right to speedy trial under Article 21.

Importance of Cross-Examination
Supreme Court: State of Haryana vs. Ram Mehar, (2016) 8 SCC 762, decided on 18.07.2016
👉 The Court held that effective cross-examination is the backbone of fair trial and weak cross can turn the case against a party.

Specific Performance & Unregistered Agreements
Supreme Court: S. Kaladevi vs. V.R. Somasundaram, (2010) 5 SCC 401, decided on 02.07.2010
👉 Even an unregistered sale agreement can be relied upon in a specific performance suit if properly proved through evidence.

Cheque Bounce Notice – Exact Amount Must Match
Supreme Court: M/s. Alliance Infrastructure Project Pvt. Ltd. vs. Vinay Mittal, (2010) 3 SCC 607, decided on 05.02.2010
👉 A notice under Section 138 NI Act is invalid if the demanded amount includes interest or other charges beyond the cheque amount.