https://www.taxtmi.com/caselaws?id=430134 A cheque issued as security can still attract Section 138 of the Negotiable Instruments Act when the parties' arrangement permits presentation on default, and the complaint is maintainable if issuance, dishonour, and non-payment after notice are disclosed. The defence that the cheque was only security and that no subsisting liability existed was treated as a disputed factual issue requiring trial, not quashing under Section 482 of the Code of Criminal Procedure. The statutory presumption under Section 139 remained available to the complainant at the pre-trial stage, so the complaint was allowed to proceed. en-us Fri, 21 Oct 2022 00:00:00 +0530 Fri, 11 Nov 2022 15:46:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=430134 A cheque issued as security can still attract Section 138 of the Negotiable Instruments Act when the parties' arrangement permits presentation on default, and the complaint is maintainable if issuance, dishonour, and non-payment after notice are disclosed. The defence that the cheque was only security and that no subsisting liability existed was treated as a disputed factual issue requiring trial, not quashing under Section 482 of the Code of Criminal Procedure. The statutory presumption under Section 139 remained available to the complainant at the pre-trial stage, so the complaint was allowed to proceed. Case-Laws Indian Laws Fri, 21 Oct 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=430134