https://www.taxtmi.com/caselaws?id=303036 Dishonour of a cheque after the drawer closes the bank account still attracts liability under Section 138 of the Negotiable Instruments Act. The provision applies where a cheque is issued in discharge of a debt or liability, presented for payment, dishonoured, notice is served, and payment is not made within the statutory period; the precise reason for dishonour is not decisive. Closing the account before or after issuance does not take the case outside the statute, because such conduct falls within the mischief the provision is designed to prevent and preserves the credibility of cheque-based commercial transactions. The drawer remains liable. en-us Mon, 05 Feb 1996 00:00:00 +0530 Thu, 30 Jun 2022 11:41:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=303036 Dishonour of a cheque after the drawer closes the bank account still attracts liability under Section 138 of the Negotiable Instruments Act. The provision applies where a cheque is issued in discharge of a debt or liability, presented for payment, dishonoured, notice is served, and payment is not made within the statutory period; the precise reason for dishonour is not decisive. Closing the account before or after issuance does not take the case outside the statute, because such conduct falls within the mischief the provision is designed to prevent and preserves the credibility of cheque-based commercial transactions. The drawer remains liable. Case-Laws Indian Laws Mon, 05 Feb 1996 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=303036