Case:- GEORGEKUTTY CHACKO Vs M.N. SAJI
Citation:- Civil Appeal No. 11039/2025
Date:- 01.09.2025
Supreme Court Bench:- JUSTICE AHSANUDDIN AMANULLAH & JUSTICE VIPUL M. PANCHOLI.
The Hon’ble Supreme Court held that merely because a part of a money transaction was done through cash instead of bank transfer, it would not mean that only the amount transferred through the banking channel can be accepted as proved, especially when the promissory note records the entire transaction.
Key Takeaways:-
- The Hon’ble Supreme Court set aside the Hon’ble Kerala High Court ruling that reduced a loan amount from ₹30.8 lakh to ₹22 lakh, cutting out the ₹8.8 lakh given in cash. The Hon’ble High Court had reasoned that only the amount sent through a banking channel could be accepted as proved.
- In this case, The Appellant argued that the Respondent had signed a promissory note, clearly admitting to receiving the entire ₹30.8 lakh. The Hon’ble Supreme Court agreed, holding that once the genuineness of a promissory note is admitted, it creates a legal presumption of debt under the Negotiable Instruments Act, 1881.
- The Hon’ble Court stressed that cash transactions are common in money lending, and their validity cannot be denied merely for lack of bank records or receipts. It clarified that oral evidence is also a legitimate form of proof in civil cases, especially when backed by written acknowledgment like a promissory note.
