https://www.taxtmi.com/caselaws?id=285439 A cheque issued solely under a Lok Adalat compromise does not establish a fresh legally enforceable debt or liability for invoking cheque-dishonour proceedings. Section 138 of the Negotiable Instruments Act requires that the cheque be drawn towards discharge, wholly or partly, of a subsisting legally enforceable debt or other liability. Where the cheque only records a settlement relating to an earlier transaction and the compromise fails, this foundational requirement is not met. A second complaint based on the same underlying transaction is therefore not maintainable; cognizance orders may be set aside and 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 establish a fresh legally enforceable debt or liability for invoking cheque-dishonour proceedings. Section 138 of the Negotiable Instruments Act requires that the cheque be drawn towards discharge, wholly or partly, of a subsisting legally enforceable debt or other liability. Where the cheque only records a settlement relating to an earlier transaction and the compromise fails, this foundational requirement is not met. A second complaint based on the same underlying transaction is therefore not maintainable; cognizance orders may be set aside and the complaint quashed. Case-Laws Indian Laws Wed, 09 Sep 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=285439