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Dishonour Of Cheque Issued As Security For Repayment Of Loan Covered U/S 138 Of NI Act

The Supreme Court on Monday held the dishonour of a post-dated cheque given for repayment of loan installment, which is also described as “security” in the loan agreement, is covered by Section 138 of the Negotiable Instruments Act, 1881. The Division Bench of Justice Dipak Mishra and Justice A.K. Goel has dismissed an appeal filed by the director of a company against the order of the Delhi High Court by which the court dismissed his petition to quash criminal complaints filed under Section 138 of the Negotiable Instrument Act, against him and the company.

Article referred: http://www.livelaw.in/dishonour-cheque-issued-security-repayment-loan-covered-us-138-ni-act-sc/

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