https://www.taxtmi.com/caselaws?id=310102 A cheque issued under an agreement conditional on a prior contingency does not attract Section 138 of the Negotiable Instruments Act until that contingency occurs and the amount becomes a legally enforceable debt or liability. Here, the agreement made encashment contingent on an unfulfilled event, so the cheques had not matured into recoverable liability when presented. On unimpeachable contractual material showing the condition precedent remained unperformed, the HC held that continuation of the prosecution would amount to abuse of process and that the cheque dishonour proceedings were liable to be quashed. en-us Wed, 16 Mar 2022 00:00:00 +0530 Sat, 07 Oct 2023 08:32:49 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310102 A cheque issued under an agreement conditional on a prior contingency does not attract Section 138 of the Negotiable Instruments Act until that contingency occurs and the amount becomes a legally enforceable debt or liability. Here, the agreement made encashment contingent on an unfulfilled event, so the cheques had not matured into recoverable liability when presented. On unimpeachable contractual material showing the condition precedent remained unperformed, the HC held that continuation of the prosecution would amount to abuse of process and that the cheque dishonour proceedings were liable to be quashed. Case-Laws Indian Laws Wed, 16 Mar 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310102