https://www.taxtmi.com/caselaws?id=108497 Countermanding payment of a post-dated cheque before its due date does not take the transaction outside s.138 of the Negotiable Instruments Act, 1881. The SC held that issuance of a cheque triggers the statutory presumption under s.139 in favour of the holder, rebuttable only by evidence from the drawer, and that the object of Ch. XVII to ensure credibility of banking transactions would be defeated if stop-payment instructions could nullify penal liability. Accordingly, an action under s.138 remains maintainable notwithstanding prior stop-payment directions; the HC and Magistrate orders were set aside, and the complaints were remanded for trial on merits to determine whether punishment is warranted. en-us Fri, 07 Mar 2003 00:00:00 +0530 Fri, 26 Dec 2025 18:29:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=108497 Countermanding payment of a post-dated cheque before its due date does not take the transaction outside s.138 of the Negotiable Instruments Act, 1881. The SC held that issuance of a cheque triggers the statutory presumption under s.139 in favour of the holder, rebuttable only by evidence from the drawer, and that the object of Ch. XVII to ensure credibility of banking transactions would be defeated if stop-payment instructions could nullify penal liability. Accordingly, an action under s.138 remains maintainable notwithstanding prior stop-payment directions; the HC and Magistrate orders were set aside, and the complaints were remanded for trial on merits to determine whether punishment is warranted. Case-Laws Indian Laws Fri, 07 Mar 2003 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=108497