https://www.taxtmi.com/caselaws?id=246027 The Supreme Court held that post-dated cheques issued as advance payment for purchase orders, which were later canceled, did not constitute a legally enforceable debt or liability under Section 138 of the Negotiable Instruments Act. The Court emphasized that for an offense under Section 138 to be established, there must be an existing liability at the time of the cheque's drawal. The Court overturned the Delhi High Court's decision, reinstating the lower court's ruling that quashed the process issued by the Additional Chief Metropolitan Magistrate. en-us Mon, 07 Apr 2014 00:00:00 +0530 Mon, 09 Jan 2017 17:47:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=246027 The Supreme Court held that post-dated cheques issued as advance payment for purchase orders, which were later canceled, did not constitute a legally enforceable debt or liability under Section 138 of the Negotiable Instruments Act. The Court emphasized that for an offense under Section 138 to be established, there must be an existing liability at the time of the cheque's drawal. The Court overturned the Delhi High Court's decision, reinstating the lower court's ruling that quashed the process issued by the Additional Chief Metropolitan Magistrate. Case-Laws Companies Law Mon, 07 Apr 2014 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=246027