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    <title>2021 (12) TMI 237 - BOMBAY HIGH COURT</title>
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    <description>A cheque issued as consideration for refraining from filing an appeal does not support liability under Section 138 of the Negotiable Instruments Act, 1881 where the underlying agreement is opposed to public policy and void under Section 23 of the Indian Contract Act, 1872. Because Section 138 requires a legally enforceable debt or other liability, a cheque founded on a void and unlawful agreement cannot create the necessary enforceable obligation. The complaint was therefore not maintainable, as the alleged consideration itself disclosed that the cheque was issued for an unlawful object incapable of founding criminal liability.</description>
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      <title>2021 (12) TMI 237 - BOMBAY HIGH COURT</title>
      <link>https://www.taxtmi.com/caselaws?id=415471</link>
      <description>A cheque issued as consideration for refraining from filing an appeal does not support liability under Section 138 of the Negotiable Instruments Act, 1881 where the underlying agreement is opposed to public policy and void under Section 23 of the Indian Contract Act, 1872. Because Section 138 requires a legally enforceable debt or other liability, a cheque founded on a void and unlawful agreement cannot create the necessary enforceable obligation. The complaint was therefore not maintainable, as the alleged consideration itself disclosed that the cheque was issued for an unlawful object incapable of founding criminal liability.</description>
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      <pubDate>Mon, 06 Dec 2021 00:00:00 +0530</pubDate>
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