Cash Loan your cash at your risk ! So you have a large “unaccounted cash ” lying at home. Unaccounted as in not declared in your Income Tax Returns. You loan it to someone and get a Cheque  from him in return. The Cheque bounces. Can you use the provisions of S. 138 of the Negotiable instruments Act to recover the amount ? The Law says NO ! See : Sanjay Mishra vs Kapoor @ Nikki on 24 February, 2009 ( Bombay High Court decision ) Held : ” The provision of section 138 can not be resorted to for…
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