https://www.taxtmi.com/caselaws?id=285439 A cheque issued solely under a Lok Adalat compromise does not, by itself, create a fresh legally enforceable debt or liability for Section 138 of the Negotiable Instruments Act, 1881. The note states that where the cheque is only a settlement instrument and the compromise does not fructify, the statutory requirement that the cheque be drawn in discharge of an existing debt or liability is not met. It further states that a second complaint based on the same underlying transaction is misconceived in such circumstances, and the earlier cognizance order and related affirmation were set aside with the complaint quashed. en-us Wed, 09 Sep 2015 00:00:00 +0530 Thu, 14 Nov 2024 12:41:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=285439 A cheque issued solely under a Lok Adalat compromise does not, by itself, create a fresh legally enforceable debt or liability for Section 138 of the Negotiable Instruments Act, 1881. The note states that where the cheque is only a settlement instrument and the compromise does not fructify, the statutory requirement that the cheque be drawn in discharge of an existing debt or liability is not met. It further states that a second complaint based on the same underlying transaction is misconceived in such circumstances, and the earlier cognizance order and related affirmation were set aside with the complaint quashed. Case-Laws Indian Laws Wed, 09 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=285439