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senthilkumar (advocate)     07 September 2010

maintainability of cheque dishonour case filed by a bank aga

dear sirs, iwant some clarification regarding the  maintainability of cheque dishonour cases filed by the nationalised banks against its borrowers cheque given as security to the loan. if possible pl furnish some case laws.thank u all.

urs sicierly

senthilkumar, advocate ,tamilnadu


 5 Replies

Adesh Kumar Sharma (Senior Associate Lawyer)     08 September 2010

Dear Mr. Kumar, 

There are a lot of judgments on this issue that a cheque given as a security, does not attract penal consequences of section 138 of NI Act. Because the cheque is not given against the legally enforceable liability. This is matter of face and disputed one, therfore  wot u r required to do, u first need to prove that the cheque was given as a security, that can be proved under trial. Only making some averment taht the cheque was given as a security wud not suffice your casue. If u hav any corspondence, whereby u can prove that the said cheqe was security cheque, it wud help you out. Otherwise you need to prove it during trial and in the cross examination of the Authorised Representative of the Bank. 

Let the complainant evidence be closed den the judgment can help u out, not before that stage is over.



N.J. MISHRA (Legal Manager)     20 September 2010



Better try diplomatic and/or conciliatory methods. Issue a genuine cheque to the bank after talking to the manager.

DEEPAK ASSOCIATES (08010117611)     05 October 2010

I agree with mr Aadesh Kumar Sharma. the Judgement on the point is as under :-


Exports India Vs State  2007(4) RCR (Criminal) 300

Vishnudas Vs Vijaya Mahantesh 2007 (4) RCR (criminal) 177


There are so many series judgemnet on this point

Goutam (Student)     05 October 2010

I agree with adesh kumar............

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