https://www.taxtmi.com/caselaws?id=302910 A cheque issued in discharge of a liability arising from an agreement to compound a non-compoundable offence is not supported by a legally enforceable debt or other liability under Section 138 of the Negotiable Instruments Act, 1881. Because the underlying agreement was connected to an offence under Section 376 of the Indian Penal Code, 1860, and had an unlawful object, the claim founded on it was void and could not create an enforceable liability. Section 138 applies only where the cheque is drawn towards a legally enforceable debt or liability, so a cheque issued on such unlawful consideration does not attract penal liability. en-us Thu, 28 Jul 2005 00:00:00 +0530 Thu, 23 Jun 2022 17:48:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=302910 A cheque issued in discharge of a liability arising from an agreement to compound a non-compoundable offence is not supported by a legally enforceable debt or other liability under Section 138 of the Negotiable Instruments Act, 1881. Because the underlying agreement was connected to an offence under Section 376 of the Indian Penal Code, 1860, and had an unlawful object, the claim founded on it was void and could not create an enforceable liability. Section 138 applies only where the cheque is drawn towards a legally enforceable debt or liability, so a cheque issued on such unlawful consideration does not attract penal liability. Case-Laws Indian Laws Thu, 28 Jul 2005 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=302910