https://www.taxtmi.com/caselaws?id=777150 A cheque issued only as security or against a future contingent liability does not attract Section 138 of the Negotiable Instruments Act unless the contingency has occurred and a legally enforceable debt has crystallised. Here, the agreement to sell made encashment of the undated cheques dependent on performance of the contract and delivery of possession, but the condition was not fulfilled and the land was not shown to be in the complainant's name or possession. On those facts, the complaint was held not maintainable and the criminal proceedings were quashed. en-us Tue, 19 Aug 2025 00:00:00 +0530 Tue, 26 Aug 2025 08:41:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=777150 A cheque issued only as security or against a future contingent liability does not attract Section 138 of the Negotiable Instruments Act unless the contingency has occurred and a legally enforceable debt has crystallised. Here, the agreement to sell made encashment of the undated cheques dependent on performance of the contract and delivery of possession, but the condition was not fulfilled and the land was not shown to be in the complainant's name or possession. On those facts, the complaint was held not maintainable and the criminal proceedings were quashed. Case-Laws Indian Laws Tue, 19 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=777150