nitin gatagat ( agencies) 09 February 2018

sec 138

i had issued a security cheque to a party for credit supply of goods . when i issue cheque i was in liability to pay them rs. 10 lakhs.. i.e. in may 2017..
now on aug 21.. they utilised my blank cheque . i was in liability that day also .. but i cleared the 10 lakhs amount in june itself. the amount they filled up was for the aug outstanding which is disputed .. as i read. ... cheues for future transactions cant be utilised ..

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Advocate Bhartesh goyal (advocate) 09 February 2018

Security cheque also comes under the purview of sec 138 of N. I Act.

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R Trivedi (advocate.dma@gmail.com) 09 February 2018

Security cheque is mixed game. A careful defence which could establish that a. Cheque was issued as security before liability b. That the payee has deposited the cheque without proper assessment of the liability or the payee has deposited bulldozing the dispute raised by drawer. If so then drawer is safe, bland stand that it was a security cheque may not help.

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