TMI Blog2006 (6) TMI 539X X X X Extracts X X X X X X X X Extracts X X X X ..... supplies from the accused and had given caution deposit. The contract was terminated. The accused issued cheque Ex.P.1 for Rs. 2,37,411.78 towards repayment of caution deposit. On presentation cheque is dishonoured. The intimation of dishonour is received on 23.3.1996 as per Ex.P.2. The complainant issued statutory notice and thereafter filed a private complaint. 2. Per contra, the accused con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... greeing to the terms mentioned in Ex.D.2. The contents of Ex.D.2 states that the accounts to be settled on or before 6.3.1999. The Ex.D.7 is the endorsement showing settlement of amounts and it permits the complainant to present the cheque for encashment. Ex.D.7, dated 18.3.1999 bears the seal and signature of the manager of the accused. The cheque is presented on 20.3.1999. Even according to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ake payment by cash and take back the cheque or allow time to arrange funds for encashment of cheque. When the amount is not paid as per oral understanding the payee is well justified to present the cheque for encashment. The cheque even if it is issued as a security for payment, it is negotiable instrument and encashable security at the hands of payee. Therefore, merely because the drawer contend ..... X X X X Extracts X X X X X X X X Extracts X X X X
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