Dishonour of Cheque - Does it amounts to Cheating ?

NI ACT  Section 138

Section 420 IPC 

Dishonour of cheque  

Cheating 

Dismissal of complaint  

Whether dishonour of cheques itself constitutes offence of cheating ?

Complainant felt cheated when despite assurances given by accused to repay loan amount, cheques issued as security were dishonoured. 

Held, mere dishonour of cheques cannot be construed as act on part of accused with a deliberate intention to cheat and mens rea in that regard cannot be gathered from the amount received as loan.

No sufficient evidence to show criminal complaint under Section 420. 

Not sustainable. 

High Court rightly held that it was simpliciter a case of nonrefunding of loan. 

[Paras 11 and 12]

SRIPATI SINGH vs STATE OF JHARKHAND CRL-A 1269/21 28/10/21 

[ A.S. BOPANNA JJ ]

[ SUPREME COURT ]