https://www.taxtmi.com/article/detailed?id=5982 Whether post dated cheques issued as advance payments constitute a legally enforceable debt or other liability is determinative for invoking the penal provision on cheque dishonour. The court held that the explanation to the provision requires a subsisting enforceable liability at the date of drawal; advance obligations or contingent future payments, or where the purchase order is not executed, generally do not amount to such a subsisting liability. The author argues this position should be reconsidered where the payee acted on the advance and cancellation occurred after cheque dates. en-us Thu, 01 Jan 2015 06:35:44 +0530 Thu, 01 Jan 2015 06:35:44 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=5982 Whether post dated cheques issued as advance payments constitute a legally enforceable debt or other liability is determinative for invoking the penal provision on cheque dishonour. The court held that the explanation to the provision requires a subsisting enforceable liability at the date of drawal; advance obligations or contingent future payments, or where the purchase order is not executed, generally do not amount to such a subsisting liability. The author argues this position should be reconsidered where the payee acted on the advance and cancellation occurred after cheque dates. Articles Corporate Laws / IBC / SEBI Thu, 01 Jan 2015 06:35:44 +0530 https://www.taxtmi.com/article/detailed?id=5982