https://www.taxtmi.com/caselaws?id=167203 HC held that criminal proceedings under s.138 Negotiable Instruments Act were not maintainable where the accused had issued a signed, undated cheque purely as security at the inception of a contract, when no legally enforceable debt or liability existed. The cheque was not delivered as an instrument of immediate negotiation to discharge any subsisting liability, and was later filled and presented by the complainant after disputes arose to invoke s.138. On construing the contractual clauses, HC found no contractual basis to treat the security cheque as issued towards discharge of an enforceable liability under the relevant agreement. Consequently, the s.138 complaint against the accused was liable to be dismissed. en-us Tue, 13 Oct 1998 00:00:00 +0530 Wed, 17 Dec 2025 14:28:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=167203 HC held that criminal proceedings under s.138 Negotiable Instruments Act were not maintainable where the accused had issued a signed, undated cheque purely as security at the inception of a contract, when no legally enforceable debt or liability existed. The cheque was not delivered as an instrument of immediate negotiation to discharge any subsisting liability, and was later filled and presented by the complainant after disputes arose to invoke s.138. On construing the contractual clauses, HC found no contractual basis to treat the security cheque as issued towards discharge of an enforceable liability under the relevant agreement. Consequently, the s.138 complaint against the accused was liable to be dismissed. Case-Laws Companies Law Tue, 13 Oct 1998 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=167203