https://www.taxtmi.com/caselaws?id=106434 A complaint under s.138 Negotiable Instruments Act, 1881 is maintainable against a guarantor where the cheque is issued in discharge of "any debt or other liability." The SC held that questions of co-extensive liability of guarantor and principal debtor under ss.126 and 128 Contract Act are outside the purview of s.138, whose language evidences legislative intent to attract criminal liability on cheque dishonour without any embargo based on the nature of the underlying obligation. The HC erred by focusing on guarantee principles and relying on irrelevant precedents, thereby overlooking the statutory text and object of s.138. The appeal was allowed and the HC order was set aside, restoring maintainability of proceedings under s.138 against the guarantor. en-us Mon, 12 Aug 2002 00:00:00 +0530 Wed, 31 Dec 2025 15:43:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=106434 A complaint under s.138 Negotiable Instruments Act, 1881 is maintainable against a guarantor where the cheque is issued in discharge of "any debt or other liability." The SC held that questions of co-extensive liability of guarantor and principal debtor under ss.126 and 128 Contract Act are outside the purview of s.138, whose language evidences legislative intent to attract criminal liability on cheque dishonour without any embargo based on the nature of the underlying obligation. The HC erred by focusing on guarantee principles and relying on irrelevant precedents, thereby overlooking the statutory text and object of s.138. The appeal was allowed and the HC order was set aside, restoring maintainability of proceedings under s.138 against the guarantor. Case-Laws Indian Laws Mon, 12 Aug 2002 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=106434