Attachment and proclamation of sale of immovable property: limitation treated from financial year end; proclamation held within period, petition dismi...
Second Schedule attachment and validity of a post-notice mortgage: TRO cannot declare mortgage void ab initio; sale and appropriation allowed thereaft...
Limitation for final assessment under sections 144C and 153 treated jointly, resulting in quashing of timebarred assessment order and liberty to reviv...
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Threshold for allottee-initiated insolvency petitions in leasehold real estate upheld; petition admitted after possession letters deemed legally ineff...
A cheque issued in connection with a loan transaction may fall within Section 138 of the Negotiable Instruments Act even if described in the agreement as a security cheque, where the loan has already been disbursed and repayment becomes due on default. The court found that the cheques were presented only after the agreed repayment period expired and that the agreement authorised presentation on non-payment. Applying Sampelly Satyanarayana Rao and Sripati Singh, it held that a security cheque matures for presentation on default when it is linked to an existing legally enforceable debt. The appellate court's contrary view was rejected, the acquittal was set aside, and the conviction and sentence were restored.
A cheque issued in connection with a loan transaction may fall within Section 138 of the Negotiable Instruments Act even if described in the agreement as a security cheque, where the loan has already been disbursed and repayment becomes due on default. The court found that the cheques were presented only after the agreed repayment period expired and that the agreement authorised presentation on non-payment. Applying Sampelly Satyanarayana Rao and Sripati Singh, it held that a security cheque matures for presentation on default when it is linked to an existing legally enforceable debt. The appellate court's contrary view was rejected, the acquittal was set aside, and the conviction and sentence were restored.
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