Cheque for repayment of installment but described as “security” covered by S. 138 of NI ActSeptember 20 2016
The Supreme Court has held that dishonour of a post-dated cheque given for repayment of loan installment which is described as “security” in the loan agreement is covered by Section 138 of the Negotiable Instruments Act, 1881 (Act).
The decision was rendered by a Bench of Dipak Misra and AK Goel JJ. in an appeal filed against a Delhi High Court judgment. The cheques in question were post-dated cheques given pursuant to the loan agreement between the company and the respondent . . .
You need to have an active subscription to view this content.
With a premium account you get:
- One year of unrestrcited access to previous interviews, columns and articles
- One year access to all archival material
- Access to all Bar & Bench reports