In Sri Karibasappa v. Sri Mallikarjun [Criminal Appeal No. 200106/2020, dated December 16, 2022], the Hon. Karnataka High Court overturned the Trial Court’s decision to acquit the defendant and ordered him to pay a fine of INR 2,00,000 or serve three months in jail.

Additionally, a list of grounds that the borrower may not use to avoid prosecution and criminal responsibility for dishonour a cheque under Section 138 of the Negotiable Instruments Act of 1881 was provided.

  • The contested demand notice was not delivered to the respondent;
  • The Cheque has been materially altered;
  • The complaint omits mentioning the time at which money was supplied;
  • The debt is past due;
  • The Income Tax Act, 1961 (“the IT Act”) Section 269-SS applies to the transaction; and
  • The Respondent issued the December 7, 2010, check as security for the INR 50,000 loan.