Supreme Court: Cash Transactions Valid if Backed by Credible Evidence

The Supreme Court held that cash transactions cannot be disbelieved merely for lack of bank records if credible evidence supports them.

It ruled that courts must assess the totality of circumstances, including witness statements and documents, instead of relying only on banking proofs.

The bench observed that negotiable instruments carry a presumption of validity, which cannot be discarded solely because part of the payment was made in cash.

It stressed that individuals giving money in cash may not always possess documentary evidence, and fairness requires recognising such transactions when sufficiently corroborated.