How NOT to Write a Cheque
How NOT to Write a Cheque
2016年11月23日
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The Supreme Court in the Indus Airways judgment clarified that a cheque issued as a mere security or advance—without an existing enforceable debt or liability—does not attract prosecution under Section 138 of the Negotiable Instruments Act. In cases where the transaction is incomplete or cancelled before any obligation arises, such cheques are considered non-actionable if dishonoured. Thus, a ‘cheque as security’ cannot be the basis for a cheque bounce case unless it represents a present and leg
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