https://www.taxtmi.com/caselaws?id=332606 The Supreme Court upheld the High Court's decision, ruling that the dishonour of post-dated cheques given as security for repayment of a loan installment falls under Section 138 of the Negotiable Instruments Act. The court emphasized that the nature of the transaction determines whether a post-dated cheque represents the discharge of a debt or liability. The appellant's argument that the cheques were issued as security was rejected, as the loan was disbursed, and the installments were due, constituting an outstanding liability. The appeal was dismissed, allowing the appellant to contest the matter in the trial court. en-us Mon, 19 Sep 2016 00:00:00 +0530 Wed, 23 Aug 2017 16:30:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=332606 The Supreme Court upheld the High Court's decision, ruling that the dishonour of post-dated cheques given as security for repayment of a loan installment falls under Section 138 of the Negotiable Instruments Act. The court emphasized that the nature of the transaction determines whether a post-dated cheque represents the discharge of a debt or liability. The appellant's argument that the cheques were issued as security was rejected, as the loan was disbursed, and the installments were due, constituting an outstanding liability. The appeal was dismissed, allowing the appellant to contest the matter in the trial court. Case-Laws Indian Laws Mon, 19 Sep 2016 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=332606