The Madhya Pradesh High Court held that a cheque endorsed “Not Negotiable” still attracts liability under Section 138 of the Negotiable Instruments Act. Justice Himanshu Joshi dismissed a drawer’s plea, rejecting the argument that such endorsement nullifies penal consequences.
The Delhi High Court ruled that banks failed to prove intentional misuse of borrowed funds by Ratul Puri and Nita Puri, striking down their wilful defaulter status. This decision highlights the need for solid evidence before labeling borrowers, protecting them from serious financial and reputational damage.
