SC held that appellant was not liable for dishonored security...

SC held that appellant was not liable for dishonored security deposit cheques totaling Rs.9,00,000 under Section 138 of NI Act. Court found appellant entitled to deduct unpaid rent and maintenance from security deposit before refund. Respondent failed to establish entire cheque amount as legally enforceable debt. Trial Court's judgment limiting compensation to Rs.3,00,000 with 6% interest was restored, setting aside appellate court and HC decisions. Rs.5,000 forfeited to State Exchequer, with default penalty of one year simple imprisonment. Evidence showed respondent had defaulted on vacating property, requiring execution proceedings for possession through police intervention.

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