https://www.taxtmi.com/caselaws?id=308688 Section 138 liability depends on the cheque's real purpose in the transaction, not merely its description as a security cheque. A cheque issued as contractual consideration or against an existing liability may support prosecution, while a purely contingent cheque may not. A summoning order recording consideration of the complaint, affidavit, limitation and prima facie grounds is not rendered mechanical merely because it contains handwritten particulars. Naming both a sole proprietor and the proprietorship concern is a curable drafting excess where the proprietor is clearly the person proceeded against. A subsequent settlement does not compound or novate liability unless it fully substitutes or extinguishes the original obligation; a settlement conditional on unpaid terms leaves prosecution intact. en-us Mon, 30 Aug 2010 00:00:00 +0530 Thu, 13 Jul 2023 12:59:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=308688 Section 138 liability depends on the cheque's real purpose in the transaction, not merely its description as a security cheque. A cheque issued as contractual consideration or against an existing liability may support prosecution, while a purely contingent cheque may not. A summoning order recording consideration of the complaint, affidavit, limitation and prima facie grounds is not rendered mechanical merely because it contains handwritten particulars. Naming both a sole proprietor and the proprietorship concern is a curable drafting excess where the proprietor is clearly the person proceeded against. A subsequent settlement does not compound or novate liability unless it fully substitutes or extinguishes the original obligation; a settlement conditional on unpaid terms leaves prosecution intact. Case-Laws Indian Laws Mon, 30 Aug 2010 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=308688