Tedhi Singh v. Narayan Dass Mahant

2022 SCC OnLine SC 302Reported decision2022#8630 most cited

What is Tedhi Singh v. Narayan Dass Mahant authority for?

When an accused raises the issue of the complainant's financial capacity to advance a loan as a probable defence, the onus shifts back to the complainant to prove their financial capacity by leading evidence, especially in cases involving cash loans and subsequent cheque issuance, even with the presumption under Section 139 of the N.I. Act operating in their favour.

13

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2015 to 2024.

Also referred to as

Tedhi Singh v. Narayan Dass Mahant · 2022 SCC OnLine SC 302 · Section 139 N.I. Act · financial capacity of complainant · rebuttable presumption · onus of proof · cash loan · cheque issuance

Also reported as

6 SCC 735

Judgments citing Tedhi Singh v. Narayan Dass Mahant

Principal Commissioner of Income Tax vs. Shri Manish Kumar Singhal

ITA/141/2024HC Rajasthan07 Nov 2024

Bench: AVNEESH JHINGAN,UMA SHANKER VYAS

For Respondent: Mr. Ajay Kumar Lahota, Advocate
Section 138Section 313

…been reiterated. Hence, whether there is a rebuttal or not would depend on the facts and circumstances of each case.” 23. This position was reiterated in Tedhi Singh v. Narayan Dass Mahant, (2022) 6 SCC 735: (2022) 2 SCC (Cri) 726: (2022) 3 SCC (Civ) 442: 2022 SCC OnLine SC 302 wherein it was held at page 739: “8. It is true that this is a case under Section 138 of the Negotiable Instruments Act. Section 139 of the NI Act provides that the court shall presume that the holder of a cheque received the cheque of the nature referred to in Section 138 for the discharge, in whole or in part, of any deb…

The Pr. Commissioner of Income Tax -7 vs. Religare Enterprises Ltd

ITA/598/2019HC Delhi08 May 2024

Bench: HON'BLE MR. JUSTICE YASHWANT VARMA,HON'BLE MR. JUSTICE PURUSHAINDRA KUMAR KAURAV

For Appellant: Mr. C.M. Grover & Ms. PayalFor Respondent: Mr. R.K. Burman, Adv. (through VC)
Section 138Section 313

…s. It was contended that for the same reason, it was rightly observed by the learned ASJ that the respondent was more economically sound in comparison to the appellant. 28. The Hon’ble Apex Court in the case of Tedhi Singh v. Narayan Dass Mahant : (2022) 6 SCC 735, in relation to the defence pertaining to the financial capacity of the complainant to advance a loan had observed as under: “10. … The proceedings under Section 138 of the NI Act is not a civil suit. At the time, when the complainant gives his evidence, unless a case is set up in the reply notice to the statutory notice sent, that the compla…

Mr. Wilfred D Souza vs. The Income Tax Officer

In the result, all the appeals

ITA/12/2015HC Karnataka30 Jun 2022

Bench: The Hon'Ble Ms.Justice J.M.Khazi

Section 138Section 378(4)

…ting in favour of the complainant. 19. In APS Forex vs Shakti International Fashion Linkers Pvt. Ltd (APS Forex)11, the Hon'ble Supreme Court held that when accused raises issue of financial 10 2022 SCC OnLine SC 302 11 (2020) 12 SCC 724 CRL.A NO.12 OF 2015 c/w CRL.A NO.13 OF 2015 CRL.A NO.14 OF 2015 CRL.A NO.15 OF 2015 15 capacity of complainant, in support of his probable defence, despite presumption operating in favour of complainant reg…

State Bank of India vs. The Assistant Commissioner

In the result, both appeal as well as

ITA/647/2018HC Karnataka17 Dec 2021

Bench: The Hon'Ble Ms.Justice J.M.Khazi

Section 138Section 139Section 313Section 378Section 378(4)

…orex vs Shakti International Fashion Linkers Pvt. Ltd (APS Forex)2, the Hon'ble Supreme Court held that when accused raises issue of financial capacity of complainant, in support of his probable 1 2022 SCC OnLine SC 302 2 (2020) 12 SCC 724 CRL.A NO.647 OF 2018 9 defence, despite presumption operating in favour of complainant regarding legally enforceable debt under Section 139 of N.I. Act, onus shifts again on the complainant to prove his finan…

The Commissioner of Income Tax vs. M/S Karnataka Bank Ltd

In the result, the appeal fails and accordingly the following:

ITA/405/2018HC Karnataka27 Jul 2021

Bench: The Hon'Ble Ms.Justice J.M.Khazi

Section 138Section 200Section 313Section 378Section 378(4)

…complainant, in support of his probable defence, despite presumption operating in favour of complainant regarding legally enforceable debt under Section 139 of N.I. Act, onus shifts again on the 8 2022 SCC OnLine SC 302 9 (2020) 12 SCC 724 CRL.A NO.405 OF 2018 10 complainant to prove his financial capacity by leading evidence, more particularly when it is a case of giving loan by cash and thereafter issue of cheque. 19. In Vijay Vs. Laxman a…

Pr.Commissioner vs. M/S Shriram Chits

ITA/814/2018HC Karnataka07 Dec 2020

Bench: The Hon'Ble Ms Justice J.M.Khazi Criminal Appeal No.814 Of 2018 Between:

Section 138Section 313Section 378Section 378(4)

…challenging the financial capacity of the complainant, at the first instance, complainant need not prove his financial capacity. However, at the trial if the financial capacity of 6 (2014) 2 SCC 236 7 2022 SCC OnLine SC 302 - 10 - CRL.A No. 814 of 2018 NC: 2024:KHC:8706 complainant is challenged, then it is for the complainant to prove the same. 19. In APS Forex vs Shakti International Fashion Linkers Pvt. Ltd (APS Forex)8, the Hon'ble Supreme Court held that when accused raises issue of financial capacity of complainant, in supp…

Commissioner of Income Tax vs. Sri M.R.Padmavathy (Indl)

In the result, all the appeals

WTA/12/2015HC Karnataka29 Jan 2020

Bench: The Hon'Ble Ms.Justice J.M.Khazi

Section 138Section 378(4)

…ting in favour of the complainant. 19. In APS Forex vs Shakti International Fashion Linkers Pvt. Ltd (APS Forex)11, the Hon'ble Supreme Court held that when accused raises issue of financial 10 2022 SCC OnLine SC 302 11 (2020) 12 SCC 724 CRL.A NO.12 OF 2015 c/w CRL.A NO.13 OF 2015 CRL.A NO.14 OF 2015 CRL.A NO.15 OF 2015 15 capacity of complainant, in support of his probable defence, despite presumption operating in favour of complainant reg…

Pr. Commissioner of Income Tax (Central)- 2 vs. Sh. Sandeep Bindra

ITA/637/2019HC Delhi21 Oct 2019

Bench: HON'BLE MR. JUSTICE VIPIN SANGHI,HON'BLE MR. JUSTICE SANJEEV NARULA

For Respondent: Mr.Naresh Kumar Chahar, APP for the
Section 114Section 139Section 269

…ce of the said loan amount, since there was neither any independent witness who deposed to that effect nor any document in this regard has been placed by the appellant. 31. The Hon’ble Apex Court in the case of Tedhi Singh v. Narayan Dass Mahant : (2022) 6 SCC 735 had observed that the accused had the initial burden to set up this defence in his reply to the demand notice, stating that the complainant did not have the financial capacity to advance the loan. The Hon’ble Court held as under: “10. … The proceedings under Section 138 of the NI Act is not a civil suit. At the time, when the complainant gives…

Shri H Munireddy vs. The Advocate General

WP/18157/2013HC Karnataka18 Sept 2019

Bench: The Hon'Ble Mr. Justice B.Veerappa Writ Petition No.18157/2013 (Gm-Res)

…otu by the Court when some information is placed before it for suo motu action for contempt of court. 15. A useful reference can also be made to some observations made in J.R.Parashar, Advocate, and Others v. Prasant Bhushan, Advocate and Others [(2001) 6 SCC 735]. In that case noticing the Rule 3 of the Rules to regulate proceedings for contempt of the Supreme Court, 1975 which like Section 15 of the Act provides that the Court 36 may take action in cases of criminal contempt either (a) suo motu; or (b) on a petition made by Attorney-General or Solicitor-General, or (c) on a petition made by an…

The Director of Income Tax vs. M/S. Synopsys International Ltd

In the result, the appeal fails and

ITA/93/2015HC Karnataka20 Jul 2018

Bench: The Hon'Ble Ms Justice J.M.Khazi Criminal Appeal No.93 Of 2015 Between:

Section 138Section 313Section 378(4)

…alingappa Vs. Mudibasappa (Basalingappa)4, the Hon'ble Supreme Court held that when accused dispute the financial capacity of complainant to pay the amount and lead evidence to prove it and thereby 3 2022 SCC OnLine SC 302 4 (2019) 5 SCC 418 - 10 - CRL.A No. 93 of 2015 NC: 2024:KHC:13678 probabilise his defence, then burden would be on the complainant to establish his financial capacity. 18. In fact in APS Forex vs Shakti International Fashion Linkers Pvt. Ltd (APS Forex)5, the Hon'ble Supreme Court held that when accused raises…

Smt. Sharada V vs. Smt. Kamala

WP/16894/2017HC Karnataka28 Aug 2017

Bench: The Hon' Ble Mrs Justice B.V.Nagarathna

Section 151Section 65

…1 IN THE HIGH COURT OF KARNATAKA AT BENGALURU DATED THIS THE 28TH DAY OF AUGUST, 2017 BEFORE THE HON' BLE MRS JUSTICE B.V.NAGARATHNA WRIT PETITION NO.16894 OF 2017 (GM-CPC) BETWEEN: SMT.SHARADA.V W/O.LATE ISHWARA CHANDRA AGED ABOUT 54 YEARS R/AT.GROUND FLOOR DOOR NO.132, VRINDAVANA 21ST CROSS, A BLOCK, 3RD STAGE VIJAYANAGAR MYSURU – 570 001. ... PETITIONER (BY SRI MANMOHAN P.N., ADV.,) AND: 1. SMT.KAMALA W/O.LATE B.RAMA BHAT AGED ABOUT 81 YEARS R/AT.UPSTAIRS, DOOR NO.132 VRINDAVANA, 21ST CROSS ‘A’ BLOCK, 3RD STAGE, VIJAYANAGAR MYSURU – 570 001.…

The Principal Commissioner of Income Tax vs. Dr. Prabhakar Kore Credit Souharda Sahakari

Appeal is allowed

ITA/100037/2016HC Karnataka05 Jul 2016

Bench: The Hon'Ble Mr Justice Hanchate Sanjeevkumar

Section 138Section 378(1)

…- 1 - NC: 2023:KHC-D:10940 CRL.A No. 100037 of 2016 IN THE HIGH COURT OF KARNATAKA DHARWAD BENCH DATED THIS THE 20TH DAY OF SEPTEMBER, 2023 BEFORE THE HON'BLE MR JUSTICE HANCHATE SANJEEVKUMAR CRIMINAL APPEAL NO.100037/2016 (A) BETWEEN: CHIDAMBER S. NANAVATE S/O LATE S.V. NANAVATE, AGE: 36 YEARS, OCC: SHAILESHWAR VIDYA KENDRA, R/O: 14TH WARD, 2ND STAGE, KUMARASWAMY COLONY, SANDUR-583119, BALLARI DIST. …APPELLANT (BY SRI A. A. PATHAN AND CHIDAMBER S. NANAVATE, ADVS.) AND: SURESH K. S/O ANNAPPA K., AGE: 37 YEARS,…

Kasturba Road

In the result, the appeal fails and

COP/93/2015HC Karnataka08 Sept 2015

Bench: The Hon'Ble Ms Justice J.M.Khazi Criminal Appeal No.93 Of 2015 Between:

Section 138Section 313Section 378(4)

…alingappa Vs. Mudibasappa (Basalingappa)4, the Hon'ble Supreme Court held that when accused dispute the financial capacity of complainant to pay the amount and lead evidence to prove it and thereby 3 2022 SCC OnLine SC 302 4 (2019) 5 SCC 418 - 10 - CRL.A No. 93 of 2015 NC: 2024:KHC:13678 probabilise his defence, then burden would be on the complainant to establish his financial capacity. 18. In fact in APS Forex vs Shakti International Fashion Linkers Pvt. Ltd (APS Forex)5, the Hon'ble Supreme Court held that when accused raises…

Tedhi Singh v. Narayan Dass Mahant (2022 SCC OnLine SC 302) — Cited in 13 Judgments | BharatTax