https://www.taxtmi.com/caselaws?id=450441 A complaint under Section 138 of the Negotiable Instruments Act was quashed because the cheque, though described as security, was enforceable only if the seller had actually paid specified dues on the purchaser's default. The complaint and the Agreement to Sell had to be read together, and they did not plead that any such payment had been made to workers or authorities. Without that foundational fact, no legally enforceable debt or liability arose, the Section 139 presumption could not override the transaction terms, and the complaint failed to disclose the essential ingredients of the offence. The Delhi HC therefore held that inherent jurisdiction could be exercised to quash the complaint. en-us Thu, 29 Feb 2024 00:00:00 +0530 Tue, 05 Mar 2024 14:55:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=450441 A complaint under Section 138 of the Negotiable Instruments Act was quashed because the cheque, though described as security, was enforceable only if the seller had actually paid specified dues on the purchaser's default. The complaint and the Agreement to Sell had to be read together, and they did not plead that any such payment had been made to workers or authorities. Without that foundational fact, no legally enforceable debt or liability arose, the Section 139 presumption could not override the transaction terms, and the complaint failed to disclose the essential ingredients of the offence. The Delhi HC therefore held that inherent jurisdiction could be exercised to quash the complaint. Case-Laws Indian Laws Thu, 29 Feb 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=450441