Saturday, April 1, 2023

S.138, NI Act, 1881 : Supreme Court Explains the Law

 S.138, NI Act, 1881 : Supreme Court Explains the Law


An important Judgment was passed on 7 April 2014.

In Indus Airways Private Limited v. Magnum Aviation Private Limited [2014] GCtR 2931 (SC), the issue was whether dishonour of post-dated cheques which were issued by the purchasers towards ‘advance payment’ would be covered by Section 138 of the Negotiable Instruments Act if the purchase order was cancelled subsequently. It was held that Section 138 would only be applicable where there is a legally enforceable debt subsisting on the date when the cheque is drawn.


Kindly note that full text Judgments of Hon'ble Delhi High Court can be downloaded absolutely free of cost (without any charges except internet data) from the official website at the link 

https://delhihighcourt.nic.in/judgment

Then entering the date of Judgment, for example, as  7 April 2014.


Written by 

Vishal

Delhi

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