https://www.taxtmi.com/caselaws?id=428050 In proceedings under Section 482 CrPC, the Madras HC held that a challenge to Section 138 NI Act prosecution on the ground that the cheque was issued only as security, or that the compromise agreement was void under Section 23 of the Contract Act, could not be decided where disputed questions of fact remained. The complaint and compromise arrangement disclosed a prima facie liability, and whether the cheque was issued towards discharge of a legally enforceable debt or merely as security was left to trial. A security cheque does not cease to attract Section 138 if the underlying liability survives on presentation. en-us Mon, 29 Aug 2022 00:00:00 +0530 Fri, 23 Sep 2022 08:24:07 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=428050 In proceedings under Section 482 CrPC, the Madras HC held that a challenge to Section 138 NI Act prosecution on the ground that the cheque was issued only as security, or that the compromise agreement was void under Section 23 of the Contract Act, could not be decided where disputed questions of fact remained. The complaint and compromise arrangement disclosed a prima facie liability, and whether the cheque was issued towards discharge of a legally enforceable debt or merely as security was left to trial. A security cheque does not cease to attract Section 138 if the underlying liability survives on presentation. Case-Laws Indian Laws Mon, 29 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=428050