https://www.taxtmi.com/caselaws?id=299842 A prosecution under Section 138 of the Negotiable Instruments Act cannot be sustained on post-dated cheques issued towards a hypothecation liability once the financier has repossessed and sold the vehicle. The court reasoned that cheque liability under Section 138 depends on a legally enforceable debt, and that debt ceased to support the earlier cheques after seizure, repossession, and adjustment of sale proceeds. The financier must pursue any remaining balance through other legal remedies or a fresh arrangement. On that basis, the complaint was held not maintainable and the criminal proceedings were quashed. en-us Tue, 13 Oct 2009 00:00:00 +0530 Fri, 31 Dec 2021 17:29:30 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=299842 A prosecution under Section 138 of the Negotiable Instruments Act cannot be sustained on post-dated cheques issued towards a hypothecation liability once the financier has repossessed and sold the vehicle. The court reasoned that cheque liability under Section 138 depends on a legally enforceable debt, and that debt ceased to support the earlier cheques after seizure, repossession, and adjustment of sale proceeds. The financier must pursue any remaining balance through other legal remedies or a fresh arrangement. On that basis, the complaint was held not maintainable and the criminal proceedings were quashed. Case-Laws Indian Laws Tue, 13 Oct 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=299842