https://www.taxtmi.com/caselaws?id=158386 The Supreme Court held that the return of a cheque with the endorsement "account closed" falls within the scope of Section 138 of the Negotiable Instruments Act, 1881. The Court interpreted "account closed" as a form of "insufficient funds," aligning with the legislative intent to maintain the credibility of cheques in commercial transactions. The Court emphasized that strict interpretation excluding "account closed" would defeat the purpose of the law. The appeal was dismissed, with the Court underscoring the importance of upholding the efficacy of banking operations and penalizing dishonest drawers. en-us Mon, 26 Apr 1999 00:00:00 +0530 Fri, 01 May 2020 16:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=158386 The Supreme Court held that the return of a cheque with the endorsement "account closed" falls within the scope of Section 138 of the Negotiable Instruments Act, 1881. The Court interpreted "account closed" as a form of "insufficient funds," aligning with the legislative intent to maintain the credibility of cheques in commercial transactions. The Court emphasized that strict interpretation excluding "account closed" would defeat the purpose of the law. The appeal was dismissed, with the Court underscoring the importance of upholding the efficacy of banking operations and penalizing dishonest drawers. Case-Laws Indian Laws Mon, 26 Apr 1999 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=158386