Supreme Court: State Cannot Acquire Temple Property Through Gift Deed  ||  Supreme Court: HC Registry Should Exclude Court Vacations When Listing Cases After Fixed Days  ||  Supreme Court Flags Stark Non-Compliance With Directions on CAPF Cadre Review  ||  Supreme Court: Internet Access and Use is a Fundamental Right, Including for Children  ||  Supreme Court: Letters Patent Bench Cannot Interfere Merely Over Errors of Fact or Law  ||  Supreme Court: Voters May File Complaints Against Candidates over False Affidavits under RP Act  ||  Madras HC: Using Children in Campaign is Inappropriate but Does Not Invalidate Election  ||  Allahabad HC: Section 69 BNS Cannot Be Invoked by Transgender Woman in False Marriage Promise Case  ||  Delhi High Court Permits Britannia’s ‘No Added Sugar, Maida or Palm Oil’ Claim on Biscuit Packs  ||  Calcutta High Court Bars Deportation of Alleged Bangladeshi Woman until CAA Application is Decided    

Mahinder Singh Bhasin v. Ssangyong Engineering & Construction Co. Ltd. - (High Court of Madhya Pradesh) (14 Aug 2015)

Post-dated cheques given as security against advance do not constitute a legally enforceable liability

MANU/MP/0850/2015

Banking

When cheques are given as security against an advance, and could not be encashed unless the account between the parties was settled, the amount of such cheques cannot be considered a “debt or other liability”. Since the dispute between the parties was not settled and the Respondent had to pay for expenditure by the Applicant to fulfil the terms and conditions of the sub-contracting agreement, the cheques given by the Applicant to the Respondent could not be prematurely encashed, particularly since they were post-dated. Unless the dispute between the parties was settled, the cheques given as security did not satisfy the definition of a legally enforceable liability.

Relevant : Section 138 Negotiable Instruments Act, 1881 Act M.S. Narayana Menon @ Mani Vs. State of Kerala and another MANU/SC/2881/2006 Indus Airways Private Limited Vs. Magnum Aviation Private Limited and another MANU/SC/0288/2014 State of Haryana Vs. Ch. Bhajanlal MANU/SC/0115/1992

Tags : CHEQUE   DISHONOUR   ENFORCEABLE LIABILITY   POST-DATED  

Share :        

Disclaimer | Copyright 2026 - All Rights Reserved