Smt Jayamma W/O. Late J D Narayanappa v. Smt G v Jayanthi D/O G v Venkataswamy
Case brief
What is this about?
The High Court held that the presumption of debt discharge from a dishonoured cheque stands unless positively rebutted. While the loan contract is valid despite cash lending violating the Income-tax Act, the court quashed the trial court's award of 24% interest, ordering future interest at 6% p.a. instead.
What did the court decide?
The appeal is partly allowed. The decree is modified to award Rs.8,90,000 with interest at 8% p.a. from the date of the cheque dishonour and 6% p.a. thereafter.