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2017 (10) TMI 217 - HC - Indian LawsProceedings under Section 138 of the Negotiable Instruments Act - proceedings initiated by the complainant against the Director of the Company Held that:- The notice issued to the Directors of the Company would be sufficient for the purpose of attracting Section 138 of the Negotiable Instruments Act. In the words of the Supreme Court in M/s.Bilakchand Gyanchand Co. vs. A.Chinnaswami [1999 (3) TMI 620 - SUPREME COURT] too technical an approach on the sufficiency notice and the contents of the complaint is not warranted in the context of the purpose sought to be achieved by the introduction of Sections 138 and 141 of the Negotiable Instruments Act. Cheques were issued by the petitioner as a security - It is of the view that as the cheques were issued as a security, there is no legal bar in presenting the cheques for launching the prosecution after complying with the requisite procedures in the event of dishonour. What would be required is as to whether the cheques were presented for the outstanding liability or not. The very purpose for which the cheques issued, whether dated or undated, is only for the purpose of presenting them whenever there is a default on the part of the borrower. While that being so, it cannot be said that the cheques given by way of security are only an empty exercise and that the lender has no authority to present the cheques when there is default.
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