https://www.taxtmi.com/caselaws?id=340503 A cheque dishonour complaint under Section 138 NI Act was challenged on grounds of lack of authorisation, absence of legally enforceable liability, and the alleged non-negotiable character of the cheque. The complaint was treated as maintainable because the pleading and record showed authorisation to institute proceedings. The subsistence of a standby letter of credit did not, by itself, disprove liability at the threshold, especially in light of the Section 139 presumption. A separate letter could not alter the cheque's negotiable character where no restriction appeared on the instrument itself. Issues about the effect of correspondence, implied acceptance, and absence of reply were held to require evidence at trial, not quashing jurisdiction. en-us Fri, 17 Mar 2017 00:00:00 +0530 Wed, 22 Mar 2017 08:15:40 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=340503 A cheque dishonour complaint under Section 138 NI Act was challenged on grounds of lack of authorisation, absence of legally enforceable liability, and the alleged non-negotiable character of the cheque. The complaint was treated as maintainable because the pleading and record showed authorisation to institute proceedings. The subsistence of a standby letter of credit did not, by itself, disprove liability at the threshold, especially in light of the Section 139 presumption. A separate letter could not alter the cheque's negotiable character where no restriction appeared on the instrument itself. Issues about the effect of correspondence, implied acceptance, and absence of reply were held to require evidence at trial, not quashing jurisdiction. Case-Laws Indian Laws Fri, 17 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=340503