https://www.taxtmi.com/caselaws?id=417335 Where a financier repossesses and sells the hired vehicle before the complaint is filed, the hire purchase arrangement is treated as determined and the cheque issued thereafter cannot support prosecution under Section 138 of the Negotiable Instruments Act, 1881 unless a subsisting legally enforceable debt remains. The note relies on Section 43 of the Act to state that an instrument issued without consideration, or where consideration later fails, does not create an obligation to pay between the parties. On that basis, a complaint based on a cheque presented after repossession does not satisfy the statutory ingredients of Section 138, and proceedings under Section 482 of the Code of Criminal Procedure, 1973 may be quashed. en-us Wed, 01 Dec 2021 00:00:00 +0530 Fri, 21 Jan 2022 08:50:05 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=417335 Where a financier repossesses and sells the hired vehicle before the complaint is filed, the hire purchase arrangement is treated as determined and the cheque issued thereafter cannot support prosecution under Section 138 of the Negotiable Instruments Act, 1881 unless a subsisting legally enforceable debt remains. The note relies on Section 43 of the Act to state that an instrument issued without consideration, or where consideration later fails, does not create an obligation to pay between the parties. On that basis, a complaint based on a cheque presented after repossession does not satisfy the statutory ingredients of Section 138, and proceedings under Section 482 of the Code of Criminal Procedure, 1973 may be quashed. Case-Laws Indian Laws Wed, 01 Dec 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=417335