https://www.taxtmi.com/caselaws?id=341100 Section 138 of the Negotiable Instruments Act applies only where the cheque is issued to discharge an existing legally enforceable debt or liability. A blank signed cheque given as security in a dealership arrangement, when no subsisting liability existed on the date of issue, does not satisfy that requirement. The Court distinguished security cheques from cheques issued against an admitted due amount and treated the absence of enforceable liability on the relevant date as fatal to the prosecution. On that basis, the complaint proceedings were quashed as unsustainable. en-us Wed, 29 Mar 2017 00:00:00 +0530 Mon, 03 Apr 2017 07:23:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=341100 Section 138 of the Negotiable Instruments Act applies only where the cheque is issued to discharge an existing legally enforceable debt or liability. A blank signed cheque given as security in a dealership arrangement, when no subsisting liability existed on the date of issue, does not satisfy that requirement. The Court distinguished security cheques from cheques issued against an admitted due amount and treated the absence of enforceable liability on the relevant date as fatal to the prosecution. On that basis, the complaint proceedings were quashed as unsustainable. Case-Laws Indian Laws Wed, 29 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=341100