The High Court of Himachal Pradesh has upheld the acquittal of an accused in a cheque dishonour case, ruling that a complainant cannot maintain a prosecution under Section 138 of the Negotiable Instruments Act, 1881 (NI Act) if they fail to provide documentary evidence proving they are the proprietor of the firm named as the payee on the cheque. Furthermore, the Court observed that a cheque issued for a time-barred debt does not constitute a legally enforceable debt.

Justice Rakesh Kainthla dismissed the appeal filed by the complainant, Ashwani Kumar, against the acquittal of the respondent, Raj Kumar, by the Judicial Magistrate First Class, Court No. 2, Ghumarwin.

Background of the Case

The complainant, claiming to be the proprietor of ‘M/s Baba Enterprises’ in Ghumarwin, filed a comp

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