https://www.taxtmi.com/caselaws?id=459816 A cheque drawn on an account that had already been closed and was dishonoured on presentation was treated as falling within Section 138 of the Negotiable Instruments Act, 1881, because the provision is aimed at preserving the credibility of cheques and the faith of banking transactions. The Court read the requirement that the cheque be drawn on an account maintained by the drawer in light of the statutory object and the mischief addressed by Sections 138 to 142, holding that closure of the account leaves no credit and therefore amounts to the dishonour contemplated by the section. It also noted that an earlier contrary view could not bind because it had not accounted for the Supreme Court's interpretation. The complaint was therefore not liable to be quashed. en-us Mon, 28 Jun 2004 00:00:00 +0530 Mon, 30 Dec 2024 12:16:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=459816 A cheque drawn on an account that had already been closed and was dishonoured on presentation was treated as falling within Section 138 of the Negotiable Instruments Act, 1881, because the provision is aimed at preserving the credibility of cheques and the faith of banking transactions. The Court read the requirement that the cheque be drawn on an account maintained by the drawer in light of the statutory object and the mischief addressed by Sections 138 to 142, holding that closure of the account leaves no credit and therefore amounts to the dishonour contemplated by the section. It also noted that an earlier contrary view could not bind because it had not accounted for the Supreme Court's interpretation. The complaint was therefore not liable to be quashed. Case-Laws Indian Laws Mon, 28 Jun 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=459816