https://www.taxtmi.com/caselaws?id=299843 A cheque issued under a hire purchase arrangement does not support prosecution under Section 138 of the Negotiable Instruments Act, 1881 once the vehicle is repossessed and the agreement stands determined, because the underlying consideration for the cheque fails. Section 43 applies where an instrument is made or drawn without consideration, or where consideration subsequently fails, leaving no obligation of payment between the parties. On that basis, the essential requirement of a legally enforceable debt or liability was absent. The text also notes that the creditor had pursued civil recovery for the balance, reinforcing that criminal prosecution on the cheque was unsustainable and that the complaint was liable to be quashed. en-us Fri, 02 Apr 2004 00:00:00 +0530 Wed, 19 Jun 2024 17:11:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=299843 A cheque issued under a hire purchase arrangement does not support prosecution under Section 138 of the Negotiable Instruments Act, 1881 once the vehicle is repossessed and the agreement stands determined, because the underlying consideration for the cheque fails. Section 43 applies where an instrument is made or drawn without consideration, or where consideration subsequently fails, leaving no obligation of payment between the parties. On that basis, the essential requirement of a legally enforceable debt or liability was absent. The text also notes that the creditor had pursued civil recovery for the balance, reinforcing that criminal prosecution on the cheque was unsustainable and that the complaint was liable to be quashed. Case-Laws Indian Laws Fri, 02 Apr 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=299843