https://www.taxtmi.com/caselaws?id=458331 The Delhi HC held that Section 138 NI Act applies to post-dated cheques and advance payment cheques with credit periods, rejecting the argument that security cheques are exempt from prosecution. The court emphasized that legally enforceable debt must exist at the time of cheque presentation, not necessarily when issued. The HC distinguished the Supreme Court's Indus Airways decision, noting it involved non-supply of goods after advance payment. The magistrate's judgment was set aside for incorrectly holding that security cheques cannot form basis for Section 138 complaints. The accused were convicted under Section 138 NI Act, and the appeal was allowed. en-us Mon, 29 Jun 2015 00:00:00 +0530 Tue, 22 Oct 2024 20:29:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=458331 The Delhi HC held that Section 138 NI Act applies to post-dated cheques and advance payment cheques with credit periods, rejecting the argument that security cheques are exempt from prosecution. The court emphasized that legally enforceable debt must exist at the time of cheque presentation, not necessarily when issued. The HC distinguished the Supreme Court's Indus Airways decision, noting it involved non-supply of goods after advance payment. The magistrate's judgment was set aside for incorrectly holding that security cheques cannot form basis for Section 138 complaints. The accused were convicted under Section 138 NI Act, and the appeal was allowed. Case-Laws Indian Laws Mon, 29 Jun 2015 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=458331