https://www.taxtmi.com/caselaws?id=310773 Cheques issued only as security for a future contingent liability do not attract section 138 of the Negotiable Instruments Act unless they are drawn against an existing legally enforceable debt or liability. The complaint, MOU, guarantee deed, notice and affidavit showed the cheques were to be invoked only on default and had not been issued in discharge of any crystallised liability. On that material, no prima facie offence under section 138 was disclosed, so the complaint proceedings were quashed and the summoning order was set aside. en-us Thu, 19 Feb 2009 00:00:00 +0530 Thu, 16 Nov 2023 11:16:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=310773 Cheques issued only as security for a future contingent liability do not attract section 138 of the Negotiable Instruments Act unless they are drawn against an existing legally enforceable debt or liability. The complaint, MOU, guarantee deed, notice and affidavit showed the cheques were to be invoked only on default and had not been issued in discharge of any crystallised liability. On that material, no prima facie offence under section 138 was disclosed, so the complaint proceedings were quashed and the summoning order was set aside. Case-Laws Indian Laws Thu, 19 Feb 2009 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=310773