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2017 (4) TMI 628 - HC - Indian LawsCriminal complaint under Section 138 of Negotiable Instrument Act - cheque in question was a blank signed cheque handed over to the complainant by way of security - Held that:- On the own showing of the complainant, the cheque was a security cheque, which came to be deposited on 8th March 2016. The law in this regard is wellsettled. In the case of Sampelly Satyanarayan Rao vs. Indian Renewable Energy Development Agency Limited [ 2016 (9) TMI 867 - SUPREME COURT] wherein decision of this Court in Indus Airways Private Limited versus Magnum Aviation Private Limited [2014 (4) TMI 464 - SUPREME COURT] discussed saying that while the purchaser may be liable for breach of the contract, when a contract provides that the purchaser has to pay in advance and cheque towards advance payment is dishonoured, it will not give rise to criminal liability under Section 138 of the Act. Issuance of cheque towards advance payment could not be considered as discharge of any subsisting liability. In view of the above, this application succeeds and is hereby allowed. The proceedings of the Criminal Case pending in the Court of the learned Additional Chief Metropolitan Magistrate, Court No.36, Ahmedabad are hereby quashed.
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