https://www.taxtmi.com/caselaws?id=781205 A cheque issued as security is not immune from Section 138 of the Negotiable Instruments Act merely because of that label; liability depends on whether an enforceable debt had crystallised by the date of presentation. If the underlying obligation becomes due, the cheque may attract statutory consequences. On the pleaded facts, disputed questions about completion of work, outstanding liability, and the exact debt amount could not be resolved at the quashing stage. The Delhi HC held that the existence of a legally enforceable liability was not shown to be absent at summoning, so the complaint and summoning order could not be quashed. en-us Tue, 11 Nov 2025 00:00:00 +0530 Thu, 13 Nov 2025 08:14:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=781205 A cheque issued as security is not immune from Section 138 of the Negotiable Instruments Act merely because of that label; liability depends on whether an enforceable debt had crystallised by the date of presentation. If the underlying obligation becomes due, the cheque may attract statutory consequences. On the pleaded facts, disputed questions about completion of work, outstanding liability, and the exact debt amount could not be resolved at the quashing stage. The Delhi HC held that the existence of a legally enforceable liability was not shown to be absent at summoning, so the complaint and summoning order could not be quashed. Case-Laws Indian Laws Tue, 11 Nov 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=781205