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Indian Laws - Highlights / Catch Notes

Home Highlights January 2022 Year 2022 This

Dishonor of Cheque - insufficiency of funds - legally ...

Indian Laws

January 21, 2022

Dishonor of Cheque - insufficiency of funds - legally enforcement debt or not - if the consideration for which the instrument was made or drawn has failed subsequently, then also the instrument creates no obligation at all - On repossession of vehicle, the agreement stood terminated, therefore cheques in the hands of financial institution becomes instrument for which consideration has failed, even being presented and dishonoured, no offence under Section 138 of the N.I. Act would be attracted. - HC

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