https://www.taxtmi.com/caselaws?id=341658 A cheque described as a security cheque still attracts Section 138 of the Negotiable Instruments Act, 1881 if, on the date of presentation, it was issued towards an existing and legally recoverable debt or liability. The decisive test is whether the underlying loan or instalment obligation had already arisen and become payable when the cheque was issued or presented. If the cheque represented a subsisting repayment liability, its dishonour falls within Section 138. The label of security, by itself, does not exclude criminal liability where an enforceable obligation exists. en-us Tue, 11 Apr 2017 00:00:00 +0530 Fri, 14 Apr 2017 06:59:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=341658 A cheque described as a security cheque still attracts Section 138 of the Negotiable Instruments Act, 1881 if, on the date of presentation, it was issued towards an existing and legally recoverable debt or liability. The decisive test is whether the underlying loan or instalment obligation had already arisen and become payable when the cheque was issued or presented. If the cheque represented a subsisting repayment liability, its dishonour falls within Section 138. The label of security, by itself, does not exclude criminal liability where an enforceable obligation exists. Case-Laws Indian Laws Tue, 11 Apr 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=341658