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2022 (6) TMI 368 - HC - Indian LawsDishonor of Cheque - legally enforceable debt or not - main stand of the petitioner that since the cheque in dispute was given as a security, the proceeding initiated by the respondent is legally unsustainable - HELD THAT:- The Hon'ble Supreme Court in SRIPATI SINGH (SINCE DECEASED) THROUGH HIS SON GAURAV SINGH VERSUS THE STATE OF JHARKHAND & ANR. [2021 (11) TMI 66 - SUPREME COURT] has observed that the dishonour of cheque issued as security can also attract the offence under Section 138 of NI Act and that there cannot be hard and fast rule that a cheque which is issued as security can never be presented by the drawee of the cheque. In the case on hand, the petitioner has herself admitted that the cheque in question was issued as a security. This Court has no hesitation to hold that the contention of the petitioner that the proceeding initiated by the respondent is not maintainable, as the cheque was issued as a security, cannot legally be entertained. Hence, this Court concludes that this Criminal Original Petition is devoid of merits and the same is liable to be dismissed - Petition dismissed.
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