https://www.taxtmi.com/caselaws?id=787828 Undated security cheques issued for a continuing loan facility could not sustain prosecution under Section 138 of the Negotiable Instruments Act, 1881 where the loan account remained subsisting, repayments had been made, no final recall or definitive computation of outstanding liability was shown, and no prior demand or default notice had been issued. The court treated the alleged debt as uncrystallised and the cheques as contractual security rather than instruments for a settled due liability. On those facts, the complaint and connected criminal proceedings were quashed as not maintainable and as an abuse of process. en-us Tue, 10 Mar 2026 00:00:00 +0530 Fri, 13 Mar 2026 08:36:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787828 Undated security cheques issued for a continuing loan facility could not sustain prosecution under Section 138 of the Negotiable Instruments Act, 1881 where the loan account remained subsisting, repayments had been made, no final recall or definitive computation of outstanding liability was shown, and no prior demand or default notice had been issued. The court treated the alleged debt as uncrystallised and the cheques as contractual security rather than instruments for a settled due liability. On those facts, the complaint and connected criminal proceedings were quashed as not maintainable and as an abuse of process. Case-Laws Indian Laws Tue, 10 Mar 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787828