https://www.taxtmi.com/caselaws?id=304140 A cheque taken as collateral security and signed before loan disbursement does not attract Section 138 of the Negotiable Instruments Act unless an existing legally enforceable debt or liability is proved on the relevant date. The complainant failed to show, on the evidence, that the cheque represented an outstanding liability when issued or presented, and the adverse inference from non-production of the later account extract supported that finding. Limitation did not cure the absence of enforceable liability. Leave to appeal was refused and the acquittal was upheld. en-us Tue, 16 Feb 2010 00:00:00 +0530 Fri, 09 Sep 2022 17:10:37 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=304140 A cheque taken as collateral security and signed before loan disbursement does not attract Section 138 of the Negotiable Instruments Act unless an existing legally enforceable debt or liability is proved on the relevant date. The complainant failed to show, on the evidence, that the cheque represented an outstanding liability when issued or presented, and the adverse inference from non-production of the later account extract supported that finding. Limitation did not cure the absence of enforceable liability. Leave to appeal was refused and the acquittal was upheld. Case-Laws Indian Laws Tue, 16 Feb 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=304140