Cash Loan Enforceable Under NI Act Despite Section 269SS Breach: SC

Gopalaiah Vs K. Manjunath (Supreme Court of India) Supreme Court: Cash Loan Above ₹20,000 Does Not Become Unenforceable Under NI Act Merely Because It Violates Section 269SS of the Income-tax Act The Supreme Court held that mere violation of Section 269SS of the Income-tax Act, 1961, which prohibits acceptance of loans above the prescribed limit in cash, does not render the underlying loan transaction illegal, void or unenforceable for the purposes of Section 138 of the Negotiable Instruments Act, 1881. The Court observed that breach of Section 269SS merely attracts the penalty under Section...