https://www.taxtmi.com/caselaws?id=422044 A cheque issued as security can still attract Section 138 of the Negotiable Instruments Act if, on the date of presentation, it represents an existing and legally enforceable debt or liability. The court noted that the agreement recorded the drawer's admitted obligation to pay and that a clause stating the cheque would not be presented could not override that liability. The agreement was not treated as void under Section 29 of the Contract Act because the consideration was lawful and the covenants were enforceable. The challenge to the dishonour finding was rejected, and no patent illegality or perversity was shown to disturb the concurrent findings. en-us Thu, 28 Apr 2022 00:00:00 +0530 Sat, 07 May 2022 06:36:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=422044 A cheque issued as security can still attract Section 138 of the Negotiable Instruments Act if, on the date of presentation, it represents an existing and legally enforceable debt or liability. The court noted that the agreement recorded the drawer's admitted obligation to pay and that a clause stating the cheque would not be presented could not override that liability. The agreement was not treated as void under Section 29 of the Contract Act because the consideration was lawful and the covenants were enforceable. The challenge to the dishonour finding was rejected, and no patent illegality or perversity was shown to disturb the concurrent findings. Case-Laws Indian Laws Thu, 28 Apr 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=422044