In the case of R.B.A.N.M.S. Educational Institution v. B. Gunashekar & Another (2025 INSC 490) , the Supreme Court addressed a critical issue in property litigation: the use of large cash transactions. The appeal centered on rejecting a plaint under Order VII Rule 11 of the Civil Procedure Code , as the Gunashekar’s lawsuit, based on an agreement to sell, lacked a valid cause of action. However, the Court’s attention was drawn to his claim of paying Rs.75 lakh in cash, a transaction that not only raised suspicion but also violated Section 269ST of the Income Tax Act, 1963 . Section 269ST , effective from April 1, 2017, prohibits cash transactions above Rs.2 lakh to curb black money and promote a digital economy. The Court observed that such a large cash payment, as alleged in the suit, clearly contravened this law. It noted that despite the amendment’s introduction, the desired shift toward transparent financial dealings had not been fully realized, as evidenced by this litig...
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